Thursday, January 31, 2013


With the Law on credit card, 2009,which came into force on 22 February 2010, young adults aged under 21 can not get a credit card in specific circumstances and may not be targeted by credit card issuers with offerings pre-qualified. It is not impossible to get a credit card if you are aged 18 to 21, but it is more difficult than before.

Act of 2009 credit card
Act credit card in 2009, which was enacted in 2009 and entered into force 22 February 2010 effectively brought sweeping changes to federal laws that govern the issuance of credit cards.The Act was the response of legislators to the financial crisis of 2008, which was largely a result of lending and borrowing practices irresponsible. To avoid a similar catastrophe in the future, the government made it more difficult for mortgage lenders and credit card issuers to target people at risk, which includes low-income borrowers and young adults.

The new Act provides credit card issuers require co-signature of an adult on demand credit card if the principal applicant is 21 years. This requirement may be waived only if the applicant can demonstrate sufficient capacity to repay the borrowed money. While the exact definition of "ability to pay" may vary depending on the situation, it usually involves either gainful employment or cash reserve. In simpler terms, one of three conditions must be met for a person under 21 years to get a credit card you must have a job or sufficient cash or income from a source, such as inheritance or an adult 21 or more must co-sign your application for credit card.

Credit limits
If you get your credit card with the co-signature of an adult who is 21 years or more, your borrowing limit can not be used without the express consent of the co-signer. Even if you are the holder of the credit card and pay all your primary credit card bills on time, the co-signer must accept an increase in your credit limit. The goal is to prevent young adults filling a considerable debt of credit cards, which can easily happen if the credit card issuer automatically triggers the borrowing limit in response to timely payments.

Offers pre-authorized
While you can get a credit card under the age of 21, do not expect any credit card offer unsolicited mail. Act credit card 2009 prohibits financial institutions to pre-approve potential customers age 21 and send them requests for unsolicited credit card. Credit card issuers are also prohibited to offer free items, such as t-shirts or bags, on university campuses to promote credit card offers. In short, if you are under 21, you must apply and meet several conditions to obtain a credit card proactively.