The Clock is Ticking on Student Credit Cards
As many of you know next February marks the second half of the new credit-card law which brings sweeping changes to the criteria used to determine an applicants worthiness. The days of credit cards being handed out to youngsters like Halloween candy will soon be past.
The law states anyone under the age of 21 will either need a co-signer or need to display independent means to pay bills in order to secure a card. This does leave some gray area however. How a lender determines an individuals “independent means” to pay a bill may vary. But this change will still protect the lions share of impressionable young adults.
Overall I believe this change is a good thing. Putting the training wheels on will help lower credit card debt for young, irresponsible borrowers. According to the WSJ, in 2008 one in five seniors carried more than $7,000 in credit card debt at graduation. And when you consider anyone new to the world of credit does not generally have the most favorable interest rate, that $7,000 may take longer to pay off than federal student loans that are double the cost due to low fixed interest rates.
So don’t be surprised if you see a swarm of credit card companies this fall circling the campus like sharks with free t-shirts as bait. They only have a six month window in which to recruit applicants before the application process becomes expediently harder.
But just remember this, whether you get a credit card this fall or next February you still must use it responsibly. Yes, the application process will change, but the repercussions of your actions will not.
If you are considering a credit card check out the best student options.
5 Most Recent Student Credit Card Blog Posts:
The Student Credit Blog is sponsored in part by:
