How Credit Card Offers Have Changed For Students In The Last Twelve Months

The Credit Card Act of 2009 has enacted, in its second phase, a number of new laws and processes pertaining to young adults and college students. It also clarified restrictions regarding how credit cards could be marketed to college students. For years, credit card issuers have coveted college students due to their age, and future financial independence. They also understand they have more earning potential than the population average. The new laws have provided protection for students with key restrictions you, and your parents, need to understand.

To apply for a credit card under the age of 21 requires proof of the ability to make payments on purchases, or you will need a cosigner, in order to open a credit card account. The cosigner can be anyone over the age of 21 who has agreed to be jointly liable on the account. In the event you desire to request an increase in the credit limit, your cosigner must also agree in writing to the increase. Students that have a responsible attitude toward credit card use, and use them sensibly, are putting themselves in the best possible position following graduation.

Credit card issuers have also been given guidelines by the law that affects the ability to market to students. Free items, giveaways, and other solicitations cannot be used to entice students within 1000 feet of any campus property. However, the game continues to be directed towards students through social media with Facebook "Like" contests, online games with the ability to claim virtual rewards, and the ability to pool online earnings for special perks. Students must exercise caution and remember credit cards all report data to credit reporting agencies which can seriously affect your ability to rent an apartment, or purchase a new car. You are adults and capable of making your own decisions. Not every credit card is created equal so carefully consider your specific needs, and make an informed decision.

The new laws also have mandated new restrictions for credit card issuers that allow for your protection.

• A credit card company has to tell you when they plan to increase the rate on your card, or add additional fees.

• Your monthly credit card bill has to disclose how long it will take to pay off your balance if you only pay the minimum payment.

• There are no interest rate increases for the first year you have your card.

• You must tell your credit card company to allow transactions that take you over your limit. If you do not exercise this provision, you may be turned down on a purchase.

• Standard payments and times must be due the same date each month. Accept the responsibility to use your credit card wisely. They are the most attainable and effective means of building your credit to help shape your life for years to come.

Comments? Questions? Email Here

© HowtoAdvice.com

How to Advice .com