CNNMoney reports that for better or worse, new laws that take effect on Monday are poised to curb the proliferation of credit cards on college campuses, making it tougher for students to get credit cards.
Last May, Congress decided to crack down on credit card companies and passed a law ushering in sweeping changes for the industry. The laws make it harder for card issuers to raise interest rates unless a cardholder is at least two months late on a bill.
But some of the biggest changes will hit those under 21, who will find it tougher to get a credit card without jumping through new hoops.
No longer will students be able to step up to a table on campus and walk away with a teddy bear, T-shirt and credit card, at least not without a parent’s signature or proof of solid income or other assets.
Consumer advocates say the new laws are a good change that will prevent students from starting new careers overloaded with debt.
Photo by VISA/MC.
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