Citibank Offers Credit Reports
to Student Cardholders

In a clever move that serves both issuer and cardholder interests, Citibank has begun offering a free annual credit report to its college student cardholders. Citibank has partnered with Experian, Inc. to distribute the credit reports and also plans to mass-market credit reports to its student loan customers online. Offers began rolling out to student cardholders in December 2001. As of mid-January, Experian had received over 9,000 responses.

Citibank has publicized the credit report program as "the latest ground-breaking initiative bolstering Citibank's commitment to advancing financial literacy among young adults." Gina Doynow, business manager of Citibank's college student card program, told the American Banker that, in addition to expanding its credit education efforts, the bank wants to nurture brand loyalty among its college student portfolio. She says "we think of the student market as a good long-term investment. We have lots of products and services to offer students as they move into their lives." Nina Prikazsky, vice president of operations at student-loan specialist Nellie Mae (Braintree, MA) told the American Banker that "students probably don't have much on their credit reports, but in general its good that Citibank is making an effort to raise awareness about debt management."

Citibank surveys of student cardholders found that 62 percent of respondents knew what a credit report was, but only 25 percent had ever seen one before. Only about 6 percent of all student cardholders were aware that they could obtain a copy through a credit bureau. Doynow noted that "in general, they know its important to establish a good credit history, but they don't completely understand how it affects them."

Exposing students to the reality of a documented credit history seems like a good idea. Accurate and comprehensive surveys of student indebtedness are scarce, but two surveys referenced in a U.S. General Accounting Office (GAO) study last year found that nearly two-thirds of all undergraduates have at least one bank credit card in their name. Perhaps 25-35 percent have two or more cards. Being able to see what is seen by every creditor, landlord and employer to whom they apply should have a sobering effect on young borrowers.