How the New Credit Card Laws Will Affect College Students

When an emergency hits, credit cards can be useful items to have. And as a way to build credit, credit cards can be an essential first step. Unfortunately, young adults under 21 are often irresponsible with credit cards. Credit card companies have often solicited students on college campuses by offering freebies for applying for a card. Sadly, many college students then went on to purchase items far beyond their means to pay for them. Times are changing, though, and credit card companies are being forced to back off. Truth be told, this is one of the best things that could happen for young college students.

No soliciting

One of the first laws to affect college students under 21 prevents credit card companies from soliciting students on college campuses. That’s not to say they can’t solicit students elsewhere, but this law may help cut down on the student’s pressure to get a credit card. Being on campus and seeing everyone else sign up may have caused more students to apply, even though they knew they didn’t need a credit card.

No referrals

Another law protecting younger students is that colleges won’t be able to give out the student’s mailing address or contact information to credit card companies. This means the student won’t be bombarded with credit card applications. If the applications aren’t there, the student will more than likely give less thought to applying for a credit card.

No (unemployed) minors

These laws don’t necessarily prevent younger college students from getting a credit card. In fact, people under 21 can still apply for a credit card under certain conditions. First, a student must be able to prove that they have an income large enough to support a credit card. If the student cannot do this, a parent or legal guardian must co-sign the application.

Some college students may feel that this treatment is unfair. This is supposed to be a time to build credit so that after graduation a mortgage or car loan can be secured more easily. Unfortunately, most college students ruin their credit with credit cards. Also, if the student is financially responsible, a parent will probably have no problem co-signing the application. These laws are meant to protect, not control, college students.

Amy Brantley