INDIANAPOLIS – Afena FCU has launched what is believed to be the first student credit card program in Indiana.
The pilot credit card program targets students ages 16 to 18 and was unveiled during the Indiana league’s annual convention. The goal of the program is to teach students about the responsibility of using credit wisely before they leave for college. Students participating in this program will have access to financial counselors and be required to attend an education course on using credit wisely prior to issuance of a card.
The student Visa card will have a $100 limit to prevent overspending or accruing debt. Student information will not reported to credit bureaus to give students the opportunity to earn history with the credit union, learn from mistakes and correct them without being penalized, according to the Indiana league. In addition, all of the interest earned by the credit union will be given back to the high schools the students attend.
The program was developed in conjunction with the Indiana league’s “Ignite program,” which aims to develop and implement innovative ideas in CUs.
