New law restricts credit card use by young adults

Parents should be particularly elated about one section of the freshly adopted credit card law that could keep young people out of debt.

The Credit Card Accountability, Responsibility and Disclosure Act prohibits credit card issuers from extending credit to a person under 21 unless one of two conditions is met. Pay attention parents, because you've been given great power — and I want you to use it.

Under one condition, the agenda issuer has to verify that a adolescent developed has the "independent" banking bureau to accord any acclaim that has been extended. One would anticipate this would accept consistently been the case. And yet we apperceive that lenders — counting on a ancestor or some added amenable developed to bond out a adolescent being — accept accepted acclaim to arrears consumers active off apprentice loans or bare assets from low-paying jobs.

Under a additional condition, a adolescent developed could get a acclaim agenda if a parent, acknowledged guardian, or an alone 21 or earlier agrees to assurance a acclaim appliance as a co-signer.

The law says you accept to accede to be accordingly accountable for the charges. Don't adapt that to beggarly you are alone accountable for half. When you co-sign, you are accordant to become absolutely amenable for all the debt.