With the passage of the credit card act, credit card companies will have limited access to college students. Free From Broke highlights ways how the new law is affecting college students.
These can easily be summed up to to how the law makes it hard for college students to get credit cards. On a personal finance standpoint, the new law is just what’s needed to prevent college kids from being flat broke before they earn their first paycheck.
Here’s what the new law requires:
Proof of Income. Kids under 21 will be required to show proof of income either from a job, investments or a substantial savings balance as proof that they have the cash to back their charges. If they can’t they need a co-signor.
No Free Gifts on Campus. Credit card companies love to entice students with free gifts. The new law makes it illegal for companies to entice students to sign up on campus or 1000 feet from the vicinity.
Advertising. The new boundaries also involve limiting advertising. They even have to get permission from the college in order to do so.
Better Disclosure. If they are allowed by the college, companies and the college need to disclose the nature of the relationship.
All in all, the law is designed to create another generation of broke young future professionals which is totally great in my book.
