08-12-2013 07:35 PM
They are referring to the Card Act of 2009.
Ensures Adequate Safeguards for Young People
• Requires issuers extending credit to young consumers under the age of 21 to obtain an application that contains: the signature of a parent, guardian, or other individual 21 years or older who will take responsibility for the debt; or proof that the applicant has an independent means of repaying any credit extended;
• Limits prescreened offers of credit to young consumers;
• Prohibits increases in the credit limit on accounts where a parent, legal guardian, spouse or
other individual is jointly liable unless the individual who is jointly liable approves the increase;
• Increases protections for students against aggressive credit card marketing, and increases
transparency of affinity arrangements between credit card companies and universities.
Thanks for posting this, Lexie! Wow the law really makes it hard for under 21 folks to build credit. Imagine not being able to get a credit limit increase ...
08-12-2013 07:47 PM
08-12-2013 07:55 PM
Agreed, Lexie. Though I would expect an 18 year old to be responsible for his/her own life, there is not nearly enough credit education for pre-college kids...
08-12-2013 09:40 PM
Have them listen to Credit Score/Credit Card podcasts!
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO