Credit Crunch

Credit cards and college students don't mix. Sure there are some students that are financially responsible and are able to keep themselves out of debt, but I definitely wasn't one of them a few years ago when I turned 18.

A great new credit card law, dubbed the Credit CARD Act of 2009, will take effect on Feb. 22 and will prevent naïve college students (like myself five years ago) from falling into the greedy grasp of the credit card industry.

The law will have significant multiple effects on college students across college campuses nationwide, all of which I find beneficial, and will prevent students from causing themselves to enter into debt.

The change that will affect most students at ACC will be the ban on credit cards companies from issuing credit cards to anyone under the age of 21.

Preventing students under 21 years old from receiving a credit card is a great idea because they are not financially responsible enough to handle a credit card. Student bills already are enormous enough if you pay tuition, textbooks and living expenses, so adding a credit card bill is foolish.

However, there are loopholes. According to the law, Title III, Section 301 of H.R. 627 (the Credit CARD Act) states that the only way those under 21 could receive a credit card is with "the signature of a cosigner, including the parent, legal guardian, spouse, or any other individual who has attained the age of 21 having a means to repay debts incurred by the consumer in connection with the account."

Providing proof that you can pay off your debt is another way to obtain a credit card.

If you are able to sign up for a credit card before you turn 21, be aware that you must have your cosigner's permission to increase your credit limit.

Other changes that will affect college students concern the marketing strategies credit card companies use to attract students.

For example, ACC will have to inform students and alumni if they give a credit card company access to their contact information. I think it's terrible that no one has made this a law before.

The law will also ban companies from offering freebies (e.g. pizzas and T-shirts) if students sign up for credit cards on or near campus or at college-sponsored events.

It's a shame to think that those kind of marketing ploys worked for so many years. I mean really, free pizza in exchange for debt? How does that make any sense at all?

Aside from the actual laws that will take effect later this month, Section 304 of H.R. 627 includes an appeal from Congress to colleges and universities to create their own policies and procedures concerning credit card companies.

Congress urges colleges to adopt policies limiting the number of campus locations where credit card marketing events take place, requiring credit card marketers to alert the school when they are conducting on-campus marketing events, and requiring that students receive credit and debt management courses as a routine part of new student orientation.

I'm sure that I haven't seen credit card companies marketing on any ACC campuses, but I believe the college should adopt these policies just in case.

Opponents of this bill could argue that the government is just being overprotective of college students. This may be true, but I believe that the Congress' actions are justified.

I've witnessed firsthand how credit card companies can take advantage of college students. Whether you are for or against this new law, my message to you is the same:

Pay attention to your finances as soon as you turn 18, and safeguard yourself from incurring unnecessary debt that could cause you to struggle in the future.