Creditors Scramble for College Students

Next year credit card companies must require co-signers for those under 21. ABC News had this article on October 5, 2009. These companies are scrambling to get college students to sign up before February 2009 when this new law goes into effect. Under the new rules, the Credit CARD Act of 2009 will restrict anyone younger than 21 from getting his or her own credit card, unless a parent, guardian or spouse is willing to co-sign or the underage person can show sufficient income to pay the credit obligations. The article said 84% of college undergraduates ave at least one credit card and the average balance is $3,173 the highest amount ever according to Sallie Mae earlier this year. Campbell says "it has not made sense that students with no job could receive credit and this law will help them learn responsibility." Mc Bride of Bankrate.com said that having credit is more important than people think. "it also relates to prospective employers, landlords and even auto insurance companies."