With student debt relief and consolidation actions on the rise thanks to reckless spending, the new credit card rules coming in will help curb student credit card debt. Some people have complained, however, that a shotgun effect will happen, as responsible students are being caught in the restrictions as well.
Here are a few details to remember about the new rules:
You need a co-signer. The co-signer must be an adult willing to address any issues or debts that may happen if the student fails to pay. This applies if the student or the applicant is below 21 years of age.
If you can’t get a co-signer, present proof that you have the ability to pay. In the event that you cannot find an adult to co-sign for your credit card, you must prove that you can financially handle credit card payments. Just what is needed to prove this is up to the banks or the credit card company.
You can still apply online. However, you will still have to follow all the new rules.
Reactions
The issue of student credit card debt has affected local reactions to on-campus credit card marketing. In New York, all on-campus offers for credit cards are banned. In Texas, campuses have designated areas for credit card marketing. Even then, they are required to give financial literacy programs.
But for students who do know how to handle their money, the new rules are a mixed bag. There is agreement that credit cards marketed to students shouldn’t have high credit limits, and that students shouldn’t have to go through so much for a credit card. The bottom line for many is that a balance between accessibility and the credit limit should be found.
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