Posted by Jorden Meltz
As college students across the country headed back to campus last month for the new school year, so did the credit card companies. And they're pounding the pavement.
The companies are scrambling to sign up young people for credit cards in a last-minute effort to beat the new credit card law that takes effect in February. Under the new rules, the Credit CARD Act of 2009 will restrict anyone younger than 21 from getting his or her own credit card, unless a parent, guardian or spouse is willing to co-sign or unless the underage person has proof of sufficient income to cover the credit obligations.
Not everyone thinks that's such a good thing. "One of the unfortunate consequences of this new legislation is that it will inhibit otherwise responsible kids from establishing a credit history," said Greg McBride, a senior financial analyst at Bankrate.com, a consumer financial services company.
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This is interesting considering the new laws being considered that would not allow credit to be given to people under 21 without parental permission.
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