In the past, everyone on campus was trying to give you a credit card. It looks like that is about to change. Is this a good idea or not?
Sunday, February 21, 2010
Under 21? Getting a credit card just got tougher
In the past, everyone on campus was trying to give you a credit card. It looks like that is about to change. Is this a good idea or not?
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46 comments:
I think it is a great plan. I know quite a couple of people that literally live on credit cards. One of the big reasons that I oppose the use of credit cards by teenagers is that teens do not know to use the credit card efficiently. They buy whatever they want and later find it hard to pay back when they become adults. Another reason is that I dont have a credit card, so it does not really affect me. :) Also, what is the big deal in being able to build up your credits if you can not repay, and then later go bankrupt? Well, for those i-love-my-shiny-credit-card kids, this news is going to be hard.
First!!
-Rosemaria Varghese
Period:7
good and bad. as long as your not dumb and can control your spending then a credit card is not a bad idea. but if u love gambling or just love to buy things then this idea of getting rid of credit card give away can help you in the long run. But if u need a credit card and really want one then stopping credit card giveaways is bad. Many of these credit card giveaways comes with stuff, so if your smart u take the stuff then cancel the card later. but u have to be responsible if your not ur goign to end up paying lots of money. and then eventually get hunted down for debt. maybe. So its good and bad depending on the person.
I think this decision is flipped off the deep end. Now I could just be blowing steam but I personally am tired of all these age requirements. They, referring to older people, think of us as the future? Well, how do they expect us to care for them if, first we can't get a job until we are 18, and now they are trying to take away credit cards until we are 21? Come on... Almost everything these days is done electronically. Obviously even buying products. With the world that we live in today, I wouldn't feel safe carrying cash around all the time, and with a credit card, if it happens to get lost or stolen, you don't have to worry about your money because of this new thing called "identity theft protection". So, with that all said and done, I feel that it is a remedial decision and that they should actually think about what they are doing before they start spouting at the mouth with completely idiotic ideas.
I believe this a good idea, but I don't quite agree. People need to grow and freaking learn they cant just go and buy what ever they want, and if they cant, then its large amounts of debt for them. I'm sure there are some exceptions, but mostly its kids being stupid. Just be happy with a debit card, until you can actually pay your bills with your steady income. Finally, the credit card companies WILL find loopholes for getting these cards to kids, they are professionals at that.
It's a great idea. I remember when I was 5 years old, I was sent a credit card from a random company. Whether they were trying to expose little kids to make them spend like crazy and then cash in when their parents can't pay, or if it was just a simple mistake, there is no reason a 5 year old should receive a credit card. i'm glad it's finally getting harder for people under 21 to get credit cards, however, i think these company's will still somehow get these credit cards to kids.
- Travis Menger
Well, this idea of change has a good side and bad side. The good side is that people under 21 are generally in college, and living off of their parents; therefore, they view the credit card as free money and can do whatever they want, but by the time they graduate, they must pay back all their debt plus the interest. Also, when the people offer these credit cards, they only express the good things about it, and make them seem like they're wonderful, so it misleads the customer. However, credit cards are good when it comes to conveniance because it is easier than carrying around cash, but then people have to pay it back later. So overall, the changing of the guidelines is good because people under 21 generally do not have a grasp on how the system works, and the importance of paying as you go, but people will still probably cheat the system.
It is a great idea to make it so only those who can pay off the bills can apply for a card. It is true it helps build credit but you can build credit if you cant pay the bills off anyways so its a win-win. If you dont have a steady income or a mommy to pay the bills, you shouldn't have a credit card. End of story.
I believe it is a bad idea for credit card companies to make it harder to get a credit card. Students need to start building up their credit limits and such for the future, and with books and tuition at such high prices, money needs to come from somewhere. I believe most students wont get trapped into debt, I mean we got into college somehow. If it is necessary to have a cosigner over 21 and the students parents wont sign then who will.
I believe that this is a very good plan. It will help many people who just don't get the idea that you do have to pay for these things get the idea. With costs and interest rates being told up front I think college students in particular will be able to hear these things and make a better decision that will not be sooo detrimental to their credit.
-Kim
It seems like a relatively good idea to me. People our age aren't necessarily fiscally aware and if given a credit card, most, not all, would spend the money they think they have on the card faster than a blink of an eye. The idea of receiving a card is appealing, thinking money is burning a hole in your pocket, but the reality is that eventually youre going to have to pay for all those purchases. And getting into debt at such an early age where you already have enough finances concerning college...not such a good idea
I appreciate that the government is working to restrict credit card companies, but I feel that it ends up hurting young adults. Responsible college kids need the opportunity to build up their credit for the future. I do agree that there should be a lower limit on the credit card during the first few years. If a student wants to take on the responsibility of having a credit card (and the possible risk), then they should be able to.
Helping irresponsible or unaware students stay out of financial trouble is a good idea. I'm not sure it's the government's place to save us from ourselves, however. If at age 18 I can be tried as an adult in court, I think I should be able to get a credit card the same as the next (older) man. Of course, there is the argument made by fans of Lincoln and FDR that this is a time of crisis (not just war) and, thus, the government may take on a more energetic role in managing our everyday lives. Still, I think the responsibility of keeping credit card companies of college campuses should fall to the school, and the job of responsibly managing one's money is the card holder’s.
As always, you can't just make a blanket statement and say something is good or bad and expect it to apply to every single college student. That said, these new laws can either be helpful or a headache for college students, depending on whether or not they know how to be financially responsible. I'm sure, however, that if a student really wants a credit card, they will have the means to get one, albeit they may have to try a little harder to get it because there's no shortage of businesses trying to make a profit.
This plan has good and bad sides. The good side, college kids now are less likely to go and spend money they don't have. But, at some point people need to learn to control their spending. If young adults don't learn in college, then when will they? All these age requirements just make things difficult. Now responsible people independent of their parents, will have a really hard time building good credit to buy a house or a car in the future. So really this law will just hurt young adults in the long run.
This plan has its ups and downs. While i dont think that banks should be marketing credit card to young adults that may not be able to pay off their balances, i also think that it is those students responsibility to manage their money if they choose to do so. I think that banks should definatly be more careful when distributing credit cards, but i dont think that simple age limits are the answer. Age does not determine financial responsibility in all cases and some of the examples in the article showed.
I think that the new restrictions on credit cards is wonderful! I know too many people who are deep in credit card debt despite having wonderful jobs. This being said, I also feel that some concessions should be made to students who are financially disadvantaged. For many young adults living without a credit card would mean they would be unable to pursue higher education or afford daily provisions in order to survive. So in conclusion colleges should stop enticing students with credit cards on college campuses, students should first learn the responsibilities entailed to owning a card first. The limit of a credit card should be lowered considerably and availability of gaining credit should be based on a person's financial circumstances.
I believe that although it legally doesn't make much sense to me (since you're considered an adult at age 18 in most every case), I also think that limiting the availability of credit cards to those under 21 will ultimately have a beneficial effect. The credit card trends of the last decade have not been great indicators of America's fiscal responsibility. Typically, those youthful teens all too often feel like frivolous spending has no serious effect on their lives (since there are no SHORT-term consequences). Hopefully this legislation, which may or may not be completely fair to young group of adults in this country, will benefit our consumers by waiting till spenders are more mature with their spending.
I am completely for the new credit card law. There are way too many stories of college kids burying themselves in debt after being persuaded to sign for a credit card with the promise of a free t-shirt. Many of these young adults have no concept of how a credit card really works, and they learn their lessons the hard way. Having a parent cosigner is a great idea, which will allow the student to experience the freedom of a credit card, but also have the safety net of a financially responsible parent. I myself have a credit card with my parents cosigning, and if I didn't have their guidance, my credit would suck right now.
I think it is a great idea. Teens are generally idiots. We'll max out a credit card without thinking about the repercussions. College graduates shouldn’t be in debt before they even start their careers. The only downside is that the teens that really do need a credit card to pay for their education are going to find it harder to receive credit.
I think this is definitely a good idea. People under 21, and even over in most cases, are irresponsible with their money and usually don't have enough experience in the economic world to handle their own money intelligently. The requirement of a parent signature to receive a credit card, although seemingly insulting, will hopefully make students think about the responsibility that comes along with credit cards. Even if you're intelligent and have no intention of over using a credit card, the new plan just adds to the precaution one should use while using and applying for credit cards. All in all, i think it's a positive plan.
Kathleen Clark
7th Period
Now, I may be biased in my opinion because I don't spend money constantly or in large amounts, but doesn't everyone need access to lots of money at one point in their life: buying a house, a car, education? It would seem quite redundant if people decided credit cards were useless and went on carrying dollar bills. To me, I would hope that people could realize the benefits of them and not abuse them but this is not always the case. With the new law in effect, it would only balance out people under 21 to an average credit score. I think it is a good idea to have an established income before getting a credit card, but insure that they won't lose their job or have savings to fall back on.
Though I think the intentions are well placed, I believe that the federal government would be overstepping its bounds in declaring when they think I am most financially responsible. It would be wise to consider the debate regarding the 26th amendment: if one is old enough to die for their country at 18, they should be old enough to vote for their representatives. Similarly, if the United States thinks the youth of America is savvy enough to navigate war-stricken countries, surely they would consider our fiscal astuteness advanced enough to navigate the world of prowling credit card companies.
The government needs to keep its grimy hands off of the free market. The only thing of note in the article was the elimination of “inducements” because some people are just that easily persuaded. We ought not to allow the government to interfere with the capitalistic system that is, under this administration, being whittled away. Students need their cards for, as it states in the article, books, gasoline, and other SCHOOL supplies. It is the student’s responsibility to be responsible with their purchases. If the student decides he or she needs that new iPod or a whole stack of miscellaneous items for their party, they ought to suffer the consequences. If anything, teach basic common sense. Spend money on that. This legislation is hardly the way in which the founding fathers intended the commerce clause to be used. Now students will be strained expending extra mental processing power on figuring out how to pay for things. When money and food are among your list of concerns, they tend to rise to the top.
Definitely, definitely a great idea. Many students are completely irresponsible with managing their money and do not need to rack up a huge credit card bill that they will never be able to afford. I have a credit card of my own, paid for by my parents and I have learned how easy it is to just swipe the card through the scanner whenever I am low on cash...but then I always suffer the consequences later from my parents. Until you can meet the requirements to own a credit card and establish responsibility for yourself, keep using cash kids.
I think this idea has two sides. Some students do live on their own and have no support from their parents, therefore they have a steady job and can pay off their bills. However, the other side is that some students get a credit card just for the heck of it and spend like crazy with no way to pay off the bills. Responsible students shouldn't be punished because of the slackers. To solve the situation credit card companies should take more time checking to make sure someone can handle credit card fees.
I'm personally one to be against using too much credit. Just doesn't feel right spending too much money that isn't mine. If it's for something like a house or a car, then yeah. That's ok. But college students who have no idea what they're getting into is a horrible idea. I'm in pretty good agreement with the new law as it still allows for younger people to get sometimes necessary credit access, but it doesn't let the credit card companies take as much advantage of them
I think that it is a good idea. Most younger people don't completely grasp the idea of a credit card, and the idea of the money being there is really distracting. They thinking of spending all of the money before realzing you have to actually have the money to pay it back. I say, if you don't depend on your parents for the money to pay it off and don't have a steady pay check, having a credit card isn't the best idea.
I think this is a good and bad idea. There are multiple students who are responsible enough to manage their money and pay bills. Others have no idea how the credit works. They struggle to pay their bills and end up in debt. Changing the age to 18 could help those who struggle to manage their money, but could also hurt those who are responsible with their money
megan kinneman
2nd
I understand where the lawmakers are coming from.people dont really understand the consequences of credit card debt. as far as they are concerned, this shiny piece of plastic buys them whatever thay please with a single swipe.this is a great plan in theory but there are far too many negative side effects to calm the general public.those people who planned ahead and got credit cards for their children in order to build credit this is an annoying waste of their time. but it wont be much of a big deal because they will be cosigning anyway.
anju joes
per 7
At this point in my life, I don't particularly care much for a credit card, or even a debit card for that matter...it's too easy to spend a lot of money in a small period of time. But I think that this new law should not make it so difficult for people under 21 to obtain a credit card if that person believes they can handle the responsibility of one, and the means to pay it off. At 18 you are legally an adult, and as an adult you should be able to handle yourself, and own up to whatever decisions you make. I do like that the government is concerned for the well being of a college student, but they should have requirements and have the credit limit be reflective of the client's income.
-Gabe Zolayvar
Like most people have iterated, I am against any restrictions on credit cards for people under 21. Credit cards are incredibly convenient and handy, that's why they're so popular. To penalize the entire college populations because of the incredibly irresponsible "happy-to-be-on-their own" college students who don't realize that they have to pay off their debt at the end of the month is foolish.
Punishing the credit card companies and banks, who admittedly do want you to go into debt, is just pinning the blame on the scapegoat. It's like blaming the teacher or the environment for every single student failure. While admittedly, sometimes these factors play a major role, a lot of the time it is simplyh the student. Likewise, most of the time, it is not a predatory credit card company (Free teddy bears and t-shirts are hardly coercive inducements.) that is to blame. It is the foolish student who somehow got it into his or her head that he or she could pay off a $5,000 debt with no job or income.
-Eric
This idea had good intentions but I don't think it will be that effective. Though this will prevent students from getting credit cards without knowing anything about them, it seems like it will only delay the problems that they can cause. Not having had any experience with credit cards during college, people will simply begin over spending once they have left, while they may still be looking for a job, credit cards may be their only way to support themselves. This law also affects those who don't go to college and can cause problems for people coming out of high school who are actually going into good jobs in the work force. I think that congress should instead regulate the limits that students and those under 21 are allowed to have so that they can't burden themselves with an unbearable amount of debt. This way credit can be gained, debt can be avoided, and financial experience would be promoted.
I think that in general this is a good idea. There are too many students that don't truly understand how a credit card works and how easy it is to end up in debt. In the past, the overabundance of credit card offers has caused them to seem almost like novelty items, and many people did not excersise responsibile use or take time to recognize the consequences of misuse. At least under the new plan, people will have to think twice before getting a credit card, and the people who probably shouldn't have them won't be able to get them. Also, the people who prove that they can handle using a credit card shouldn't really have too much trouble getting one. Of course there are always exceptions, but overall, this is a good idea.
It limits the individual in order for the government to limit national debt. The new standards that will be placed on the student who really need the break. I do concede that we as a nation have a responsibility to lower our debt but I now feel hindered. Though new standards are necessary I feel like this might be too much.
Yes, I do approve because having a credit card is stupid and I don't need the hassle of having to worry about paying and neither should any teen.
Like any law, it is going to hurt some people and benefit others. For those who are financially responsible, this law is going to be a headache. However, if they really want one, I'm sure it's still possible to get one, it'll just be a little harder. And for those who aren't at responsible, it's going to benefit them greatly, but they might not realize it until much later in life.
I believe the law is good and bad just as I see Brandon Say in the beginning. I know its good because teenagers are the worst shoppers, most the time. when they get chance, they buy everything. I feel I would do that if I get a chance. I don't know about you guys. so when they buy beyond what they can pay back, they build up debt and it will have its adverse affect in the economy. Again, it doesn't matter if it's a few, but that's not the case when debts are considered among teenagers. And as the article says, sometimes the credit card company charges high interest rates and the teenager may or may not know this.
The bad part is, we don't get to start build our credit scores by buying alcoholic beverages. Well I mean, you don't get to start building your credibility not even when you are 21. I believe they will come up with a new age requirement , maybe 30 or 35 to be considered an adult in case of credit card approval.
I can't really give a straight answer because it depends on the situation. When you have a credit card, you don't see the money, whereas with straight cash, you see the money leaving your hand (and let's face it, that never feels good) and acts as sort of a check on your spending, at least it does in my case. A negative aspect is that...well, cash money isn't always available on hand, which makes credit cards so convenient. However, credit card debt is also bad. I guess I'd have to just agree that the card applicant must be able to prove that he's got the income able to pay the credit card bills. On time.
The law has sound intentions, but what concerns me is its detrimental impact on fiscally responsible young adults. Yeah, both lessening the influence of credit card advertising and calling for more restrictions on obtaining a credit card provide a blanket solution to the problem of credit card debt, but many people under 21 who are sensible with their money will consequently not be able to build their credit history.
Part of the law includes "limits on how and when credit card companies can set interest rates." I'm certain that interest rates are adjusted according to a borrower's credit rating, so constraining how a company adjusts its interest rates could mean that a person with bad credit would receive the same interest rates as a person with good credit, effectively penalizing those with good credit ratings.
I don't see a problem with it. The way i see it this will keep people from getting a mountain of debt. Some people believe they have a limitless amount of money because they have a piece of shiny plastic. This way at least they wont rack up debts that their parents might have to pay for. Anything that adds extra protection especially when it has anything at all to do with banks is a good idea, because banks always seem to run out of money.
I believe this is a good idea. This will prevent many students who don't quite understand the responsibility of owning a credit card from building up a debt that they can't pay off. Also, having a guardian co-sign for the credit card is great because generally when a college student builds up a debt they can't pay off it's the parents that bail them out. Though it is unfortunate for the people who can pay off their debts and are just trying to get their credit score up, this is a necessary step to keeping college students from building up huge amounts of debt.
I think that this decision places unnecessary power in the hands of lawmakers. It is up to the individual who uses the credit card to be financially responsible and not push themselves into overdraft; the government should not have to dictate such issues. By putting this plan into effect, yes they may be saving some individuals from acquiring debt early in their lives, but they are also punishing the fiscally aware individuals under the age of 21 who can use a credit card responsibly.
I actually agree with this. Credit cards can be very hard to manage,keeping up with how much money you have in your account and how much you take out is not easy. Many teenagers do not keep up with their payments once there parents are not there to help them. This is extremely bad for college students that have other expenses such as student loans. Being in debt ay such a young age is terrible and very hard to come out from.
I think this is a pretty good idea. Youngsters usually don't understand that the can max a credit card, and cause themselves to be in serious debt. Now students can only spend the money they do have rather than the money the don't have.
I agree that credit cards need to be limited. However, some students may have more lucrative jobs than others and will need higher limits. Setting a cap based on age is wrong, and making students jump through hoops to achieve credit cards is also wrong. The majority of students have some responsibility, but its the few that don't that necessitate laws like this. BTW anyone notice the grammar mistakes?
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