Getting your student a credit card

Back to School » Getting your student a credit cardYour college freshman has checked off everything on the school buying list: laptop, clothes, alarm clock, backpack ... but what about a credit card, or a student credit card?More than three-quarters of college students have a credit card, according to a 2011 study from the Student Monitor, while 2 out of 5 are interested in getting one in the next year. The disturbing part about this study? One in 20 report their parents don't know they have a credit card.That's a good reason to start teaching them now about the power of plastic.

New credit card laws in effect

The Credit Card Accountability, Responsibility and Disclosure Act of 2009 has made it more difficult for students to acquire credit on their own if they are younger than 21. Because of the CARD Act, anyone under 21 years old can't sign up for a credit card unless they can prove they can make the payments (read: income) or has a co-signer who is over 21.Also in the law, students no longer have to resist the temptation of free gifts offered to them from credit card companies in exchange for an application. Before the CARD Act, credit card issuers could give out, say, free pizza if a student filled out an application for a credit card or student credit card.  Read More...

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