A news article on Forbes.com highlighted some new laws that could make it difficult for people under the age of 21 to get a credit card in their own names. The rules would require a cosigner for those who can’t prove that they have their own means of repaying debt. It would also prohibit companies from sending out the pre-approved credit card offers to people under 21.
When I was in college here at Lamar, credit card representatives were allowed to set up booths on campus and solicit students to sign up between classes. They offered freebies of every type. You’d be amazed that a student would sign up for a credit card, just to get a free t-shirt, or whatever else they were giving away that day. Sadly, I’ll admit that I was pressured to sign up for one of these credit cards. You know what my “free gift” was…some greeting cards with black and white pictures of cute kids on them. Yeah, I know…sounds silly.
I was very responsible with my credit card and eventually closed the account because I realized I didn’t really need it. I did keep another card that had a higher limit, for emergencies (although I can’t remember any real emergencies I needed it for). I charged some things on occasion, but always paid off my account in full. Unfortunately, I did know other students who had maxed out their credit cards, and certainly weren’t paying them off in full.
So what do you think about these laws, which are slated to go into effect in February 2010? For more information you can read the whole article HERE.