As promised earlier here is the 2nd edition of the Credit CARD Act and what it means to you! This edition focuses on youth and how the CARD act effects marketing to youth and what lending guidelines institutions need to follow.
Under 21? Want a credit card? Be ready to prove your income!
Effective February 22, 2010 the CARD Act bans credit cards for people under 21. When I first read this I was a little shocked because I really needed my credit cards when I was in college. BUT the caveat to this is that they either have to have an adult co-signer or prove that they have the means to pay back the debts. Ah now it makes more sense. When I was 19 I couldn’t believe that I could apply for a credit card and say that I make $200,000 a year and they don’t require proof. Because I’m a bit of the paranoid type and would be way too afraid to ever lie about my income I never did that and because of that I had a small credit card which saved my bacon a time or two; in fact it even bought me some bacon. mmm. However, there are people out there that aren’t afraid of fluffing their income. Hopefully this will prevent a 19 year old college student from getting a credit card with a $7000 limit but instead based on her income she’ll get a $500 limit to help with emergencies; not necessarily a big screen TV.
No more campus freebies!
If you have ever been on campus during the first week or during a street fair you have seen the tables with free t-shirts, pizza, Frisbees, what-have-you, that are put out as a way to entice students to get a credit card with that company. Well the CARD Act says no more offering free gifts on or even near campus! Also, colleges and universities now have to disclose the contracts signed with credit card companies. Word. Plus, the credit card companies also have to disclose the offers they send out to congress. Double word.
Go ask your mom! Go ask your dad!
Well just because you’re over 18 doesn’t mean you don’t have to get your parents permission anymore. Anyone younger than 21 needs to get permission from parents, guardians or spouses to increase the credit limit on an account they hold with those adults. Seems like this should have been in place years ago!
Most of this seems like common sense but are we taking away some of the empowerment of turning 18? What are your thoughts out there? What are your thoughts as an under 21 consumer? What are your thoughts as a parent, older sister, or consumer? Questions?
photo: here
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