No More Credit Cards For Those Under 21

Posted: July 6, 2009 in Uncategorized

Beginning in February of 2010 those people under the age of 21 will not be allowed to get credit cards. At least not how people can normally apply for and receive credit cards. This is a result of the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 that President Obama signed in May.

Those under 21 will be able to get a credit card if: 1) a parent or guardian co-signs, or 2) they can show evidence of sufficient income to cover credit obligations. I’m gonna tackle the second part first. They need to show that they have enough income to cover credit obligations. Last I checked, I have to do that too. And so does everybody else. I have yet to see a credit application that doesn’t ask you to specify your income amount. Now maybe the rules will be more stringent for those under 21. Perhaps they’ll actually have to prove that they make as much as they say they do. Maybe they’ll have to send copies of pay stubs. Who knows. And now for the part about co-signers. What a fucking crock! That’s just a sneaky little ploy that will help the credit card companies. So Daddy co-signs on Junior’s credit application. Junior is approved with a $500 credit line. As time goes on, the credit card company keeps upping Junior’s limit (like the evil companies that they are they’ll probably up it by at least $500 every six months…at least that was the norm back when I was in school). Next thing you know Junior has $3000 on his card with no way to pay it and now Daddy is now stuck with a $3000 debt instead of $500. Brilliant!

I like this quote by Mary Ann Campbell, a certified financial planner, “If you can’t qualify on your own, get a part-time job.” Right. Because in today’s economy there are just so many available jobs. Anybody can just go and help themselves to a job. God knows why unemployment is at a 26-year high if it’s so easy to go out and get a job. I think somebody needs a dose of reality.

It’s very important to start building your credit history as early as possible as so many things are determinant upon credit histories. Having to wait three extra years to get a credit card is certainly not going to help. It is however going to make it more difficult to rent an apartment, buy a car, buy a house, or possibly get a new job (since many places now like to do credit checks).

These kids can vote, go to war, get married, serve on a jury, and run for public office, yet they can’t get a credit card without strings attached. Pathetic!


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