CREDIT CARD ACT 2009 AND COLLEGE GOERS

CREDIT CARD ACT 2009 AND COLLEGE GOERS

The President Barack Obama passed the Credit Card Bill on May 22 2009
making it into a Law that all American credit card companies as well
as all its citizens were expected to oblige. The law has been brought
into force almost 9 months after it came into gestation and since
February 22 2010 all credit card users as well as providers have been
employing the Law in their day to day credit card usage.

It was only when the credit crisis came that the Government realized
the seriousness of the situation that the credit business of the
country was in. It did not take a long time for the government to
realize that one of the biggest reasons behind the disastrous position
that the credit business of the country was in could be attributed to
the young age at which the people of the country were being exposed to
plastic and the related dangers that came with it because of the
irresponsible ways in which the youngsters used the power of plastic
.
Age matters when it comes to wielding plastic power.

It is with this realization in mind that the Credit Card Act 2009
decided to alter the minimum age at which an American can own a credit
card. As per the latest set of statutes that govern credit cards most
young college goers would find it extremely difficult to own a credit
card. An American adult would need to cross a minimum age of 21 in
order to own their own credit card today. If you are below the
stipulated age of 21 you would either need to furnish proof of having
an income of your own or would need another responsible adult like
your parent or guardian to co-sign your application.

The common sight in most Universities at the start of an educational
year was to see sprawling canopies set up by various credit card
providers to catch these youngsters and lure them into owning their
first credit cards. But such a sight was no longer to be seen this
year. This is because credit card companies have taken the hint and
imposed bans on spending exorbitantly on such advertising campaigns
during the start of a college year. Student credit cards are also
supposed to be charged significantly lower rates of interests while
also having a lower credit limit which is also one reason why credit
card providers are dubious about roping in students into their client
lists.

Does a student need to have his own credit card then?

The past was a Golden Age for not just the credit card providers who
could charge close to a ransom from the innocent students for the huge
balances they accrued on it quite unknowing of the dangers that lay
ahead but also for the students because having a credit card of their
own gave them access to a sort of freedom of access to money. The past
was also marked by days when there were numerous responsible students
who realized the advantages they stood to gain by having a credit card
at their disposal so early in life especially in terms of using it
well to gain a rock solid credit history which in turn would give them
unlimited access to all forms of credit throughout their life. They
understood perfectly well the perks that having a great looking credit
score held when it came to owning their own vehicle or home while
getting the best interest rates in any form of credit be it a home
loan or a medical insurance.

So then what now?

The new laws are not in any way spoiling your chances of getting a
credit card so early in life. In fact most financial experts still
voice the opinion that getting a credit card early in life and using
it well is in fact the simplest way to get a great looking credit
history because the earlier you start the more time you have in your
hands even if you should make some mistakes in the beginning. The only
thing that the government wants to make sure by issuing such a law is
to guarantee that youngsters don=92t run into trouble with credit card
debts before they can even set out a career on their own.

The credit card laws itself gives you two options. The first is to get
a responsible person to co =96sign your credit card. This would mean
that there would be somebody to give you the right kind of advice and
to warn you in advance should you proceeding in the wrong direction
towards credit card debt. But if you do not feel like burdening
someone else or are not the type who wishes to take advice from some
one else then you would need to wait for the second option.

The second option that the new credit card laws give you is to have
your own source of income. This would mean that you would need to have
a job of your own. If both these are not possible then for a start it
is best to go in for either a debit card or get yourself a prepaid
credit card. The second option can also help you to learn to use
plastic power against a specific sum of money because that is what a
prepaid credit card is all about. Yet another advantage here is that
the interest rates will also be significantly lower.

Pay your bills on time.

The credit card laws have given a lot of weightage to customers who
pay their bills on time and in full. So make sure that you get into
the habit of doing just that as early as possible in life. The latest
laws state that you can be charged only what you actually owe the
credit card company if you have been paying your dues on time. The
concept of double billing cycle also cannot be charged on customers
who pay their dues regularly. Credit card holders who pay their dues
on time will also be kept as far away as possible from due date
gimmicks. This makes it especially important to pay your dues on time
and if this is not done them at least make sure that you make the
minimum amount due on your credit card right on time every month.

Be a responsible user of a credit card.

It is wise to start learning and practicing the right kind of spending
habits from the moment you start making as well as spending your own
money. From the day you get your own credit card make a monthly budget
and spend only against what you make. Credit cards will always give
you an incentive to spend on luxury items even if it is something that
cost much above what you make. Curb such tendencies right at the root
and never let it grow.

Credit cards are a real blessing when it comes to having some extra
cash at hand and there is nothing better than a credit card when it
comes to emergencies. But if used carelessly there is no easier way
that this to fall headlong into debts. So remember to use it wisely
and well.

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Posted by Miles on Feb 7 2011. Filed under 0% Apr credit Cards • Credit Card . You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.