i think that there need to be provisions or limitations on people, but i don't know if having a co-signer really solves the problem. i know that for myself and a lot of people that i know got into credit problems in college because we just didn't have that kind of responsibility, but to make someone co-sign for you - that kind of puts them at fault as well and that doesn't help. i think that there should really be limitations on the credit limits, and the interest rates etc...don't incentivize so much when you're targeting college kids for cards.

I think having proof of income should be a restriction for ANYONE applying for a credit card, much less people under 21.

I agree with monodaymoos; anyone w/o proof of income should have restrictions.

They need to stop with the whole "not-responsible-until-21" thing though. If an 18 year is not responsible enough to have a credit card or drink responsibly, why are they allowed to vote and join the military?

I agree with anonymous. You are considered an adult when you are 18. Treat people as such. Why is 21 some magic number? Most 21 y.o I know are just as stupid and irresponsible as when they were 18 y.o.

Totally agree with the others that 21 is not some magic number. I understand that credit card companies need to assess the risk of giving you a line of credit, but they should assess everyone the same way. There are plenty of older people who fail at paying their bills and spending responsibly. To me, this is just plain ageism.

I see nothing wrong with allowing those under 21 to have a credit card if it has a low limit (say $1000) without a co-signer. There are times a CC is extremely handy (plane tickets for example). From the stories my students have told, it seems as if the CC companies almost encourage reckless spending by upping limits, even if someone is only making minimum payments.

I agree with Expresso14. Restrict the amount of credit available, which is exactly what I experienced back in 1999. I applied for two cards and one was approved for $500, and the over $300. Worst case scenario the issuing bank is on the hook for a couple hundred bucks.

Not allowing students and graduating students access to credit will hinder their ability to purchase clothes for an interview, ink to print their resumes on, funds for transportation to and from offices for interviews, plane tickets to go home for the holidays, and the ability to pay for emergencies.

Give them small credit lines, a grace period, and moderately high interest rates to offset delinquencies. If used responsibly, then they will have high credit scores and the ability to purchase a house or car when the times comes.

Let's not forget that some employers may decide to not hire a candidate if their credit is bad (sign of irresponsibility), and auto insurance carries sometimes charge higher premiums to those with poor credit.

Imagine an 18 year old who can't get a line of credit because of a new law that says if they have no job, they can't get credit, and now they have no credit history. They can't afford to insure a vehicle because they have poor-to-no credit, can't buy decent clothes for that hot accounting job, won't get the job because they have no credit...We put waaay too much emphasis on FICO scores.

They can have a credit card, it's just saying either they or someone else has to have a job to pay it off. Um, duh! If they have no source of income, how are they going to pay it?

I don't see this hurting anyone's chance of getting a job. No one expects an 18 yr old to have good credit anyway.

I agree with mondaymoos, everyone should have to provide proof of income.

expresso14, there really is no example where debit card can't be used instead of a CC. Even in your example, you don't need a CC to buy plane tickets and it isn't any easier than using a debit card.

dienliv, you can build a credit history w/out using credit cards. Many credit unions, for example have programs set up to help you build your credit without actually having the debt.

In general, no one deserves or is entitled to credit. This is a much broader problem - entitlement - which comes from everyone, young and old.

I'm not so sure about the effectiveness of a cosigner, other than putting someone else on 'the hook' if the younger party defaults on payments. It won't really help curb credit spending, more just protect the banks.

I agree with those above- income checks should be mandatory for all credit cards, not just for those under age 21.

"I'm not so sure about the effectiveness of a cosigner"

You know how many of my friends signed up for credit cards to get a free t-shirt and then used the card and couldn't pay it back because they had no money? People are frickin' stupid.

Some college students do not have income or have very low incomes (my undergrad college prohibited us from working more than 10 hrs a week on campus). Credit cards are handy when you need to buy something big (like a plane ticket) and don't have the money available (can't use a debit card). If I needed to buy something that my parents would cover, they'd reimburse me before the bill was due. Co-signing may be ok, but I'm not sure how easy it is to set up when your parents are on the other side of the country. A credit card is generally the easiest way to start building a credit history and there's nothing wrong with getting a card, provided you have the knowledge to use it responsibly (what the real shortfall is here).

With a couple exceptions I've always paid my bills in full and on time (the exception being when I bought a used car and the interest rate on my credit card was lower than any loan I could get because I didn't have enough of a credit history).

if you are old enough and think that youre responsible enough to have a credit card - thats on you - not you and your cosigner.

I guess the deeper question is, what is the income proof going to have to be? College students can take out federal loans without proof of income or a co-signer. Most college students make $3000.00 a year working part time or on campus....is that enough?

Some kids have credit cards that they need to use to buy supplies for school and have the luxury of not having to pay the entire amount immediately since it's so much money.

I just think that a blanket rule is unfair and more restrictive than helpful. Some people don't have parents who want to be tied to thier children's credit. In face, Suzy Orman doesn't recommend it EVER. So....it puts everyone in an awful situation.

Also, what about the school programs that require students to purchase computers. Are all store credit cards going to require a co-signer? Such as apple or Dell?

What really is going to happen, is students are going to turn more to loan companies to help offset the costs....which will prolong the payments and cost them even more in the long-run.

18 maybe. but 21? thats kind of ridiculous. if they're "old enough" to have a credit card, there shouldn't be restrictions. Just because some is 18 or 19 doesn't mean they're not as responsible as a 21 year old.

anonymous above wrote:
"What really is going to happen, is students are going to turn more to loan companies to help offset the costs....which will prolong the payments and cost them even more in the long-run."

In reality - that would be a good thing. Loans are often accompanied by MUCH lower interest rates than those on credit cards. I too had to purchase a computer under my college requirements - the amount was factored into the financial aid package. My loan interest rate? 3.9% There was no accrued interest while in school and a grace period (which can be easily extended) after graduation. Tell me what credit card has an interest rate lower than that and you may have a point.

"expresso14, there really is no example where debit card can't be used instead of a CC. Even in your example, you don't need a CC to buy plane tickets and it isn't any easier than using a debit card."

Not true. For one, most if not all debit cards have a daily POS limit. I think it's usually around $2000-$2500. I found that one out when I was buying some furniture once and I just wanted to put it on my debit card but couldn't, even though I had a lot more money in my checking account. Second, if someone steals your debit card number and makes fraudulent purchases with it, it sucks a lot more than if they steal a credit card number because they are spending your actual MONEY and not just your credit. It happened to my husband's debit card and they cleaned out our checking account enough that we couldn't pay our rent and my mother had to loan us the money for a few days. We caught the fraud immediately, but it took a few days for the bank to investigate and get the money back to us. If your CC is stolen, you're only temporarily losing money that isn't really yours in the first place.

I actually think its a good idea, I got in trouble in college and this would have helped prevent that.

I am just not a fan of a "paternal" government. We don't need to be saved from ourselves by Uncle Sam. The credit card companies can decide on their own who deserves what kind of credit line. Recently, they've learned they need to be more careful, so in response, they are lowering some people's credit lines and it's harder to get a new credit line. That's how things should work. The government should not be passing legislation with stuff like this in it. Unfortunately, I am in favor of some of the other things in this bill, so I am torn on whether or not I hope Obama will veto it (he won't).

I don't think 21 is the magic age either...there are 40 year olds that are more irresponsible with their CCs than some 20 year olds. My husband had a full-time job as a mechanic when he was 18 and he had a helluva time getting a credit card even though he had proof of income. But as soon as he went off to college when he was 20, the offers came rolling in. Why does being in college automatically make you "responsible" with money? Truth is, it doesn't. EVERYONE should have to have proof of income to get a credit card. And if there is an 18 year old with a decent-paying job that can handle a CC, let them get one. And if there's some 40 y.o. dude that can't hold a job to save his life that wants one, make HIM get the cosigner.

it depends. if a person is living on his/her own without parents to sign the form then they should not be left out. some people have no one to confine in. parents are dead or gone and no other people to stand behind them. i was like that when i just moved to England and had to go through a lot of trouble of just getting my life together.