There is a great deal of contradictory info going around regarding developing credit while a minor under the age of 21. Is it possible to build credit while being that young? If yes, how? Is it important to begin establishing credit even while in high school? It is not hard to go from no credit to good credit. But it is critical that parents teach their children about credit. Learn more.

In May of '09, the Card Act was signed into law by President Obama. The Card Act is intended to enhance the regulation of financial services, counting those that impact the youth of America. This plan has been turned out in three different phases during a fifteen month time frame.

How does the Card Act effect people under the age of 21?
In order to apply for any type of credit card, those that are under the age of 21 are mandated to present proof of income or have a co-signer. (Note: You must be at least 18 to apply for any credit card.)

-Credit card companies are not allowed to send pre-approved offers to people under the age of 21 unless they have received permission from the receiving parties.

-Credit card companies are not allowed to increase credit limits for accounts of those under the age of 21 that have a co-signer attached to them unless the co-signer remits written permission.

-Credit card issuers are not allowed to market free gifts for applying to college kids near or on college grounds.

In conclusion, you can build credit if you are under the age of 21. Utilizing a credit card will likely not be your best option. Student credit cards usually have high interest rates and fees associated with them making their benefit not worth the cost. And, studies have shown that individuals that fit into the 18-21 age group have a much greater chance of developing debt issues before generating a history of good credit. So you may be asking, 'how else can I get credit other than from credit cards?'. Easy! Open a cell phone and some utility bills in your name and pay your bills on time and in full every month!

Credit 101
Six Steps to Re-establishing Your Credit
Mortgages to Rebuild Credit
Getting Credit with a Secured Credit Card
Personal Loans for People with Bad Credit

Teaching Kids About Money




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