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Do you accept Star Trek?
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June 30, 1998: 1:09 p.m. ET
Star Trek just one of the ways credit card firms are trying to lure customers
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NEW YORK (CNNfn) - Passionate about a sports team, university, hobby or cause? Chances are it's on a credit card and an application is in the mail.
Star Trek, Harley Davidson motorcycles, Garfield - they all have their own credit cards along with just about every sports team and university imaginable.
There are cards for bird lovers, snowmobile enthusiasts, wine connoisseurs, professional surfers and members of the National Association of Secondary Principals. Others are custom made, allowing the cardholder to have a picture of her favorite pooch or cat.
They aim for the heart
"This is market segmentation gone wild," said Ray McAlister, a marketing and credit management professor at the University of North Texas. "You can get an affinity card with almost everything. I don't know when it will end."
What's going on here? Credit card issuers in a battle for consumers' wallets are aiming straight for the heart with cards that seek to make an emotional connection with people.
But experts warn, when it comes to credit cards, practical matters like annual percentage rate (APR) should come first. In short, there is nothing heart-warming about carrying a big balance on these cards, which typically have APRs of 17 percent or higher.
But many people do just that. Marc Sacher, a managing associate at Auriemma Consulting Group in Westbury, N.Y., said people tend to keep higher balances on affinity cards than on standard cards. And, interesting enough, people are also less likely to let the payments slide on a card that carries the emblem of a favorite team or organization.
"If you're going to default on something that's not the one," Sacher said. "It would be like you let your fellow members down."
Thousands of choices
A bulk of affinity cards flooding mailboxes are from MBNA America Bank, N.A. and First USA, which have thousands of affinity cards and churn out hundreds of new offers each year.
Many cards are tied to non-profit organizations and a small donation is made to the cause whenever the card is used. Others woo members with special offers, deals and discounts. The perks are as far-reaching as the interests and organizations they're tied to.
With the Star Trek MasterCard from MBNA, card holders receive a free membership in the Star Trek fan club and a 10 percent discount on admission to a Star Trek convention.
With the Live Broadway Visa card by First USA, card members earn points toward theatre tickets and backstage tours. New card members also can receive a framed poster signed by the cast of Broadway shows like "Rent" or "Chicago."
Marcia A. Waite, vice president of MarketIQ, based in Fair Haven, N.J., said while some card perks may be quite appealing to members, other cards have little to offer.
"Nine out of 10 are nothing more than a picture on a card," Waite said.
Interest may be higher
Norma Tharp, a spokeswoman for Consumer Credit Counseling Service in Atlanta, said it is best to keep one's emotions out of it when choosing a credit card offer.
"Number one shop for a card with no annual fee and number two look for a card with a low interest rate," Tharp said. "And you should be prepared to pay off the balance in 90 days."
If there happens to be an affinity card that a consumer simply cannot resist, they should consider getting rid of another card first.
"You only need one or two credit cards. The more cards you carry, the more temptation there is to spend," Tharp said.
As for cards tied to a favorite cause or university, experts suggest making a direct donation and sticking with a no frills, low-interest credit card instead.
"Just write a check to the alumni association," Tharp said. "It's an easier way to go."
-- By Bank Rate Monitor for CNNfn
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