In 1998, when I went away to college, I remembered being unleashed on a huge campus in Missouri. I was excited about this new place I’d be in for the next four years and knew I had a lot to take in and explore. When I stumbled upon the student union, I saw people coming and going with t-shirts in their hands and uttering the word “free.” After filling out a quick application, I received my free tee and a credit card along with it. I was excited because I felt like a grown-up since I had my own credit card and I expected the application process to be more difficult. And so the spending began. Now, here I am, nearly 30 years old, and I just dug myself out of a huge hole of debt (yes, it took that long.) In hindsight, maybe receiving a free tee wasn’t the best way to obtain my first credit card.
The president was recently presented with a bill to pass a law that prohibits credit card companies from extending credit to people under age 21 unless they can prove they have the means to repay the debt or have a parent or guardian co-sign for it. The goal is that college students will spend under better terms than they have before and not be presented with opportunities to borrow money they can’t repay.
Click here to read the Yahoo! Article to learn more details and how it could affect the economy.
What’s the best offer or gift you received for opening a credit card? Do you think the “gift” was worth opening a new line of credit?