Credit Cards for Students Become Family Choice
| March 26, 2010 |
With the new law in place putting requirements on the ability to get a credit card for those under the age of 21, today many American families are finding themselves at the dinner table for a much different discussion than in times past. Today many are finding themselves discussing credit cards and whether or not one is needed, as well as parents discussing between themselves whether or not they should be co-signers or get their child a card that is linked to their account.
Unlike in the past where someone under the age of 21 (student or otherwise) could simply sign up for a student credit card and get approved, today under the requirements of the Credit CARD Act things have changed dramatically. Instead of getting a card on their own, those looking for a card must either have proof that they can repay the lender or have a co-signer in order to get approved for their newest plastic.
Because issuers now know that parents have as much choice in the matter as the child, many issuers have opted to target them in recent forms of advertising. As written in an earlier post entitled "Student Credit Card’s New Focus: Parents", more parents are getting marketing material directed to having them choose their plastic when their children sign up for a new card. For the most part, studies have shown that the first card that someone gets is generally one that they will not give up in the future if any accounts must be closed.
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