Credit Card Applicants under 21

The rules that are currently taking effect will make it more difficult for young adults under the age of 21 to be approved for credit cards. Creditors will have to request proof of income from minors approving credit or have co-signers over the age of 21, if applicant does not qualify, with the appropriate income.

Creditors will have limited ability to lure College students into credit card contracts. Freebies and giveaways cannot be used to attract students to apply for credit cards unless the promotion is conducted over 1,000 feet from campus borders. Gifts will be allowed if the person seeking a credit card does not have to fill out an application.

Not only will minors have to show proof of income but Credit Card issuers will be allowed to request proof of income from anyone, at any age, who applies for a credit card. It used to be consumers would fill out a written or verbal application and whatever income was stated would be accepted no questions asked. Moving forward any issuer is supposed to request income verification, reviewing assets, and current obligations. One of the problems we have seen is various creditors issuing cards to consumers with no thought of other credit card obligations or limits. It will be interesting to see if this really happens and if there is any enforcement in place for creditors to actually use these procedures.

“Great credit brings great opportunity”



Comments are closed.