(03/26/2010) For years, college students served as a target market for credit card companies. Freebies such as pizza, t-shirts, and other catchy paraphernalia were used on college campuses to attract young consumers, many under the age of 21, persuading them to apply for credit. The Credit CARD Act of 2009 offers fair rules and protection for all consumers, even the ones of the younger generation.
Free pizza, t-shirts, and other incentives are a thing of the past as the CARD Act prohibits the use of this marketing approach within 1,000 feet of a college campus. The Federal Reserve Board now requires credit card issuers to file annual reports revealing the details of any and all contracts signed with colleges and universities, including dollar amounts paid to each establishment. New student orientation will now include a debt management category and schools are urged to place limitations on the number of credit card marketing events held on college campuses.
Credit cards are banned for consumers under the age of 21 with the exception of those who are able to show proof that the debt can be repaid or those who have an adult co-signer. The CARD Act does not allow prescreened credit card offers to be sent to consumers under the age of 21.
To find a card to co-sign with your teen or college student, or to shop for a credit card for yourself, visit sites such as ERATE.com to review a list of today's most competitive credit card rates.
Follow the link to continue reading the related articles.