Credit cards for college students harder under new law

As of February, 2010, banks will be restricted in their ability to issue credit cards to people under 21 who do not have “independent means” of paying the bills.  That leaves many college students in a pickle.

You might say it is good that college kids cannot get a credit card; they’ll be running up enough debt in student loans. But cards can be convenient and they are a good way to build your credit rating.  Graduating from college without a credit rating can be a problem.  It can even be hard to get an apartment.

There are two ways to get a credit card when you do not have “independent means.”  One is to have someone co-sign for the card and the other is to set up a secured card, where you make an advance deposit to cover the balance.

Our archives have more information on both of these, plus several other ways to build your credit rating. Click here to our main article on Improving your Credit Score and scroll down to the paragraph entitled: “How to Get a Credit Rating if you do not Have One”.

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