Credit Card Act for people under 21?
June 1, 2010 Categories: Personal Finance
I(19y) unlike apparently most of the college students use my credit card wisely. I comprehend the new credit card bill that just passed will require people under 21 to either have a co-signer or establish they have income.
My question is how would the bill(when it actually goes into affect next year) affect people who are under 21 now and have credit cards? I have 2 credit cards and would I now have to establish I have an income when I get my 3rd card?
You probably will be able to keep the two cards you have now without proving you have an income. I would imagine that the new rules will apply to your third card, though.
By the way, getting 3 credit cards at 19 years old is not using your credit wisely.
It will have no affect on your existing cards but if you applied for another after the new law goes into affect then yes you would have to either prove income or have a co-signer.
You can keep your crdit cards you have but you would have to provide proof if you try to get another card. I actually wish their was something like this when I was under 21 I had 4 cards by that time and struggling to pay them, this would have stoped me from getting them all, i am in bad shape at the moment.
Actually the bill will affect existing cards. Banks and credit card companies are cancelling credit lines of all types, including credit cards. If you are under 21, expect to have to prove you meet income guidelines, and if you are a student, you should expect to need a parent to cosign. Be prepared! You would not be eligible for a new card until you either met income or cosigner requirements, or after you turn 21.
Also expect sharp increases in fees, including the imposition of annual fees on more existing cards. And expect sharp reductions in credit limits. A lot of credit cards are being outright cancelled, and this could easily happen to you. The banks do not have to continue offering you credit card services, nor do they have to continue services if you get a parent to cosign. They have the right to cancel, and that’s that.
You will have to be given written notice in advance. That is just about the only real advantage to consumers in the entire bill. This bill was written to benefit banks & card issuers, and you have only been thrown a sop.
I am going to assume that those under 21 that already have credit cards will be able to keep them. but won’t be able to get any more