The regulations governing student credit cards are essential for any young adult and parent to know. These laws protect teens and young adults from building up too much debt at too young an age. These restrictions also keep credit card companies from using deceptive methods on unsuspecting teens.
In 2009, the Credit Card Accountability, Responsibility and Disclosure Act -commonly known as the CARD Act- went into law. This federal regulation helps to limit the availability of credit to young adults, specifically as a way to help prevent students from accumulating significant amounts of debt. The law affects all people under the age of 21. In addition, the law helps to prevent lenders from using deceptive methods to lure in young credit card users with credit products that typically offer high interest rates, penalties and fees.
Age of the Borrower
This law prevents those who are under the age of 21 from easily obtaining credit. In order to do so, the borrower must meet one or both of the following requirements.