Feb
College Student Credit Cards: New Law
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The Credit Card Act of 2009 introduced major changes to the credit card industry. These changes are meant to benefit consumers and set conditions for what credit card companies can and cannot do.
One big change that went into effect on February 22, 2010 was new stricter rules for consumers under the age of 21. Under the new law, if you are not yet 21, you either have to show that you are able to make payments or you will need a cosigner in order to open a credit card account. Some parents may be reluctant to cosign on a teen credit card account and take on responsibility for any debt acquired on account. Also, cosigners must agree in writing to any increase in the credit limit of the young cardholder.
Credit card companies have long targeted college students for credit cards with on campus applications and few barriers for acceptance. As a result, many students racked up substantial credit card debt by graduation or before their first job.
Prepaid debit cards are an attractive alternative to credit cards for students seeking the buying power, safety, and convenience of plastic, because most merchants including online merchants accept them. A Prepaid MasterCard or Prepaid Visa give students an option that does not involve credit checks, cosigners, or finance charges.
One Response to “College Student Credit Cards: New Law”
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- TammiePadgett: I love this idea that a prepaid card keeps you from having t...
- steven mcright: I,like how the micash card works,and to get small loan befor...
- mbhunter: Thanks very much for the mention!...
- Judy Lawley: Another way of controling people, another way of getting peo...
- Brad Chaffee: Wow, just found this link on google and realized I was on th...
Honestly speaking, I am wondering why credit card companies allow minors to have credit cards. They always think of the business and not the major implications of teenage students having a credit card.
Parents on the other hand should not be tempted with credit card offers from companies and should know that by giving their children a credit card can be really risky.
The only solution for this one is for credit card companies to heavily promote their prepaid debit cards because it is much useful for students. At least they’ll learn more about the importance of money and they’ll learn how to save.