5 Tips to get most out of your credit card

1. Pay on time

Reporting on your credit card on time helps you avoid late fees and interest rates of the penalty applied to your account, and helps you maintain a good credit record. A good credit score leads to a higher credit, which allows you to benefit from interest rates lower. Know the date your payment is due. If your bill is due at an inconvenient time of the month Pay your credit card on time helps you avoid late fees and a penalty rate applied to your account, and helps you maintain a good credit . A good credit score leads to a higher credit, making you eligible for lower interest rate. Know the date your payment is due. If your bill is payable at the wrong time of the month – for example when they expire on 10 and you have paid the 15 – contact your card company credit report to see if they will change your billing cycle based on your cash flow.

2.Stay below your credit limit.

If you exceed your credit limit on your card, your card company credit for a fee and raise your rate to a higher penalty. To avoid this, a record of your expenses or check your balance online. Also note that some retailers (eg hotel and rental car) put a “hold” on your credit card according to their estimate of how much you charge. This may reduce your available credit before the last payment has been processed. See credit block.

3.Avoid unnecessary costs.

Credit card companies not only to late payments and over limit fees informal, but charges for cash advances, transferred balances, and with a payment in return. Some companies charge when you pay your bill by phone. Pay attention to transactions that led to these costs. If you take a cash advance so you do not have enough for half of cash advances to take – and suffer half price – later in the Mon Read your card agreement credit to learn more about charges your free credit card.

4.Pay more than the minimum payment.

If you can not pay your balance in full each month, try to pay as much of all that you can. Over time, you pay less in interest payments – money you can spend on other things, and you pay your previous balance. See Federal Reserve credit card repayment calculator to determine the repayment possible.

5.Watch for changes in the terms of your account.

Companies review credit card terms and conditions of your account. They will advance announcements on changes in costs, interest, billing and other functions. Reading this change “in terms” notice, you can decide if you want how you change the map. For example, an advance fee increase cash, you may decide to use another card for cash advances. If you have a card with a variable rate or you have an introductory rate ends, you must know that the card companies credit are not required to give you a message about increasing your rates. Interest rates are shown on your monthly bill. Read your bill carefully and note any change .– For example, if it is due to the 10th and you are paid 15 – contact your card company credit report to see if they will change your billing cycle depending on your cash flow.

How to build credit score if you don’t have credit

All we know that you need credit to get credit. Atleast once you experienced in your life that you applied for credit and it’s turned down due to lack of credit history.

So you need to establish your credit profile to avail any credit when needed. You can do so quickly if you follow the following steps carefully.

1. Check your credit profile. We often think that we might not any profile with the bureaus as we have not taken any credit. But it’s better to check credit report and you might have one. Who knows you might be a victim of identity theft. So it’s a wise idea to check your report to confirm that there is nothing negative on that.

2.Open bank checking and savings account. Usually they don’t appear on your credit report. But creditor sees as a positive sign and it reflects your awareness and financial stability. You can start these steps also as a minor.

3. You can start using an add-on card of someone else. Specially your parents can add you as an user and that gives you some idea about credit card usages.This will not improve your score, but good for understanding.

4. Another strategy to get someone with good credit as a co-signer when you apply for a loan.

5. Apply for credit card when you are in school. It’s considered relatively easier to get unsecured credit card with no score when you are in school. But be sensitive when it comes to spending. Also look for cards with low annual fee and try not to commit any mistake.

6.Try to get an alternate credit card. If you are not eligible for regular credit card, try to get a store or gas charge card. Those are relatively easy to get.

Alternate and safe option to start with bank secured credit card. These cards require you to deposit certain amount in bank’s savings account and you get same amount of credit limit.

7. Avail a installment loan. After using credit cards for a few months, the best option is to get a small loan. You may buy a used car and take a loan of $2000. This demonstrates that you are good in handling different types of loan.

Manage your credit cards debt to improve credit score

It’s very important to manage debt to improve your credit score. One of the major factor of credit score is how much of your available credit limit you are actually using. It’s better to have lower balances compared to total credit limit you have. The total credit limit is the limit for all credit cards and limit on the revolving accounts together.

Paying down your debt overtime is good for credit score. That shows the consistency and responsibility for credit handling in long term. It helps in improving your score over time.

You need to reduce your debt instead of transfering you balances around. Sometimes credit card companies offer attractive offer to attract new customer like providing no interest on balance transfer. But remember the interest rate is very high after the promotional offer period. If you are transfering the balances you are going to hurt your score more. Better be paid down your debt and increase the available balance.

You may work on paying off the debt. Prioritize paying off the credit cards first  that have balances close to the credit limit. Your goal is to pay off the debt and you should prioritze the way it will help your score.  The most important thing is to control your spending.

Credit Card – Friend or Foe?

Some might refer to the good ol’ credit card as the Fantastic Plastic. As recent statistics have shown, credit cards in the western world are proving to be anything but fantastic, especially for those who succumb to its use. Debt quickly emerges and strangles the card owner somewhat like a Boa Constrictor strangling its host. <Br><br>
<b>Deceptive Plastic</b><Br><br>
Perhaps it would be better referred to as Deceptive Plastic. Many card holders don’t realize what their balance is, on a day to day basis, or just how much interest they are paying on funds not paid in full by the due date.<Br><br>
Others should consider dubbing their credit cards Drastic Plastic. These are the people who call on their credit cards for emergencies, yet they have no management plan for the newly acquired debt. They resort to using their credit cards when times are lean, or when the temptation of a purchase makes their financial situation even more drastic!<Br><br>
<b>Credit Card Debts</b><Br><br>
Credit card debt is at record levels, as the cash-strapped struggle to give up a certain standard of living, or forego a lifestyle that is not necessarily essential to their basic daily living requirements. Instead, they continue to over-commit themselves financially, and look to utilize a band-aid solution of putting it on the plastic. They believe they have survived to live and play another day. Another day, that is, until the debt escalates and becomes insurmountable.<Br><br>
<b>Credit Cards Use</b><Br><br>
There are those who use their plastic to ‘keep up with the Joneses’. Others possess a…‘I would like to have’ mentality. When cash and household budgets are tight, cutting back on frivolous spending, and doing without should be a preferred way of thinking, especially when so much of life’s necessities are already being paid for by credit card. In harsh economic times, think smart, buy smart and save smart.<Br><br>
On average, students in the USA carry in excess of $4,000 on credit cards by the time they graduate. Indeed, education has its price. At the other end of the demographic, pensioners each carry an average of over $10,000 in credit card debt by the time they retire.<Br><br>
<b>Savings or Credit?</b><Br><br>
There are ironies aplenty when one considers the credit card and how it is used. At the point of sale, the sales person or cashier, after swiping the card, is often heard to ask, Is that savings or credit? Understandably, the consumer is entitled to snicker – Savings? For many, savings is something that has gone the way of the Unicorn and the Dodo into folklore oblivion. Something of fictitious existence in a time no longer known.<Br><br>
The further irony of credit cards is the advice given by the financial sages of our day: Only use your credit card if you have the cash. Why use a credit card if you have the cash? Also, is cash not king? If so, the plastic is just that – plastic, false, and best used for making cheap ornaments, and not to be used as a method of transacting financial interaction between buyer and seller.<Br><br>
The concept of credit cards is seductively cruel. We hear it all the time: Buy now! Pay later. Beware! The promise could end up like financial herpes, as you keep paying, and paying, and paying to levels beyond your wildest dreams and for amounts well above what you originally signed up for.
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The message with credit cards is clear. You need to ensure that your fantastic plastic is your servant and not your master. If you can’t clearly determine how this is done, it is best to slip it out of your wallet or purse and leave it at home in the dark corners of your bedside drawer.<br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.

Britney Spears: A Surprisingly Virtuous Cardholder

While Britney Spears usually serves as an example of what not to do, when it comes to credit card debt, she’s a surprisingly good role-model. Let’s put her other shenanigans aside for a moment and focus on the three credit lessons we can learn from Britney Spears.
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Keep Your Debt Low
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Okay, so Britney makes about $35 million a year, while the average American family earns closer to $40,000. Let’s look at this as a matter of percentage. The LA Times estimates that Britney charged a mere $117,000 on her credit cards last year, which adds up to a paltry 0.33% of her annual income. Meanwhile, a typical American family carries a total credit card debt load of $10,000, or 25% of their annual income. Yikes!
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Keeping your debt low is important. Not only do you have more income to spend on necessities, you also pay less in fees and interest. Your credit score will also suffer if you have too much debt, so try to utilize 25% or less of your available credit on each card.
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Prioritize Your Purchases
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The majority of Britney’s purchases were supplies, groceries, and other necessary items. Furniture, travel, and entertainment were lower on the list.
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It’s important to decide what to charge, and what to pay for in cash. Groceries are consumable, but they’re also necessary. New furniture isn’t usually a necessity, plus it will decrease in value the first time you use it. The same goes for clothing. And you definitely don’t want to be paying for a vacation a year after it’s over! Try to pay cash for depreciating and consumable items whenever you can. Investments such as home repairs and education expenses can be paid for in credit, since their value will theoretically appreciate.
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Cut Entertainment Costs
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How much did Britney Spears, notorious party girl, spend on entertainment last year? Less than $500. Let that be a lesson to those of us who dine out every night and then wonder where our money went. When you need to tighten your budgetary belt, entertainment is one of the first areas you should reduce.
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That sounds like common sense advice. Unfortunately, the average family is spending $2,600 a year on entertainment. That’s quite a sizable chunk for folks who don’t have the financial security that Britney enjoys. The lesson here is that it’s fine to have fun in moderation, but be sure you can pay your bills first.
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Who knew that a pop princess could be such a paragon of financial virtue? Be strong in the ways of Britney – at least, when it comes to credit cards.
<p><br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.

5 Things Students Should Use Credit Cards For

Once college students arrive on university campuses they might be surprised at how easy it is to obtain a credit card. Advertisements are all over campus, and the offers look so good. It is imperative, however, that students understand credit card usage and how it can hurt them financially.

But it is equally important to direct them on what things credit cards should be used for while they are at college. Here are five things that they should use their cards for while studying to get their degrees.

University Fees

Any fees and charges that are not able to be included on student or other education loans. These include books and other ancillary items that are incurred while attending college and are only available from the college.

Transportation

Whether a student has their own vehicle or uses public transportation (or both), paying for those charges on a credit card is a good idea. Gas, oil and maintenance charges can be paid for on a credit card. Also, should there be a large repair required that can be paid on the card too. Public transportation charges can be paid for via a credit card when purchasing credits or tickets.

Clothing and Living Expenses

Normal living expenses can be paid for with a credit card. These can include any clothing or other items such as toiletries, etc. The challenge is to keep from purchasing items that are not completely necessary, and making the buys from locations that have the best prices. Around many college campuses can be found local merchants that sell used clothes and other items that are worth considering. Most of these take credit cards, but some do not.

Food and Entertainment

Going out for meals and entertainment can get expensive, but it is not something that can be completely cut out from student life. Use of credit cards in this instance is a good alternative instead of carrying cash.

Emergency Medical Needs

Should the need arise for emergency medical attention a credit card can be used if there is no medical insurance card or coverage available. Then, these charges can be submitted later to insurance carriers for reimbursement.

The reason that these charges are good for students to place on their cards is because it helps track those charges. And when working with parents on their expenses, one bill where all charges are brought together is a good thing.

Security enters into the equation here as well. Using a credit card to pay for these things is better than carrying cash. If a card is stolen, it can be disabled right away with a single phone call and financial damage can be kept at a minimum. If cash is stolen (or even a checkbook), once that money is gone there is little change of retrieving it.

Before a student goes to college a discussion needs to take place as to how the charges will be paid. If the student is completely responsible for the charges, then they need to manage their income and make sure they have enough money to make the payments. If the money will come from parents or a majority of the money will come from parents, then guidelines need to be set.
A good plan is to use a combination in which the parents pay for certain items, and then the student is responsible for others. The drawback to this is that it requires the student to have a source of income such as a part-time job which can have an adverse affect on their grades.

Learning how to use credit cards wisely is another key thing for students to learn while they are in college. Avoiding this learning experience can have long-lasting consequences on a person’s financial future.

How to Stop Using Credit Cards and Take Back Your Life

A credit card is financial oxymoron because the thing that makes them attractive also makes them dangerous. Of course I am referring to the ‘ease of use’ factor. The main case for plastic is that it takes the hassle out of making purchases both large and small, but this has some not so unexpected side effects. The first is that by eliminating cash we also get rid of our spending boundary.

We are now not limited to the money we have in our wallets but by the size of our credit limit; which unfortunately, more often than not, does not correlate. The second is the fact that the cost of this convenience is actually very high. When you add up the interest on your purchase, assuming you are not paying off your balance in full on or before the due date, the risk of late payment fees, overdrawn fees and even identity theft, you have to ask yourself if they are worth it.

You have probably already made the decision to stop using credit cards but you may have been so seduced by the luxury of plastic availability that you are not sure how you are ever going to live without them. Here’s a list of helpful tips below if you want to stop using credit cards:

1.Destroy the ones you have. You may think that you are strong enough to keep your card on you for ‘emergencies only’ but it is better to be safe than sorry. I have seen even the mighty fall beneath the irresistible pull of plastic, so before you start saying things like ‘buying this pair of shoes is an emergency… it will help boost my spirits and carry me through the work week so I can make money to get out of debt.’ These mind tricks are a sure fire sign that you are not as strong as you think and the best bet would be to take a huge pair of scissors to your credit cards now.

2.Stop the influx of new offers. There is simply no point in getting rid of your old cards if new ones keep showing up at your door. One of the easiest ways to kick the credit habit is to put some distance between you and access to credit cards. You can stop receiving unsolicited offers in the mail by sending a letter to the major credit bureaus or calling 1-888-5-OPTOUT. You need to provide your name, mailing address, phone number and social security number to complete the process.

3.Devise a monthly budget. Now that you have cut your ties to credit you are going to have to come up with a spending plan. Many people have no idea how much money they spend each month when they use credit cards. To make a workable budget you should document your income and make allocations for all your major fixed expenses, such as mortgage or rent, childcare, other loans and so on. Your discretionary spending allocations; which would include groceries, transportation, and entertainment, should be realistic. When you have these basic items down you can then estimate an amount to dedicate to savings by subtracting the total of your expenses from your income. If you come up with a negative figure this would most likely represent the amount you were spending on credit to supplement your lifestyle. In other words, you were living beyond your means and you would have to slowly find a way to cut back until you regain control of your spending.

4.Pay bills using an online account. When you quit credit all of a sudden things seem a little inconvenient. You can’t phone in a payment or make recurring charges to your card and you may be tempted to fall back into the trap. You can save yourself by setting up an online account so you can use your own money to pay bills online.

5.Plan before you leave the house. Now that you don’t have credit cards to swipe on a whim, you are going to have to think ahead. This may take some getting used to, but it will definitely help you to schedule your large purchases and put a cap on frivolous spending. Over time this will amount to increased savings and more responsible choices. Not a bad move at all and definitely worth the initial pain of planning in advance.

If you follow this simple five step plan you will be able to kick the credit habit and live within your means. Choosing to do this may mean the difference between building a savings account and watching a mountain of debt pile high. I know which I would prefer… how about you?

How to Keep Credit Cards from Choking Your Profits

Small business owners who use credit cards for purchases are seemingly at a disadvantage when compared to large corporations. The reason is that managing cash flow sometimes becomes more of a challenge and being able to balance income against expenses can cause headaches.

That is why small business operators should heed a few strict rules about using credit cards in their daily business activities.

Pay Quickly and Often

Since businesses use credit cards to manage cash flow they should be willing to make payments as soon as the money is available. Managing cash flow means watching income from accounts receivable and being able to allocate that income right away. This will also help prevent interest from accumulating on the credit card balance.

Actively Manage Account Online

Small business credit card account managers should make use of online access to manage their credit card accounts. This will also help them to monitor charges that occur on a daily basis.

Pay Fees and Charges Monthly

Do not allow fees and charges such as annual fees to stay on the account past the month in which they occur. If there is a dispute, it is best to pay the charges and then start an inquiry regarding the charge with the intent of having it reversed.

Watch Your Credit Limit

Credit card companies are doing crazy things with accounts these days that are designed to help them remain profitable. One such action is the lowering of credit limits. This is ok if your balance is paid off every month, but you need to be aware of your limit before you use your card again. If your balance is not high enough to absorb the charge for your purchase, then you will be charged an over limit fee. You might also incur an interest rate charge, too.

Limit Card Holders

In small businesses, usually only one or two people have company credit cards. The challenge that having multiple cards spread among several employees causes is in the management which becomes a larger business activity. The way to minimize this is to minimize the number of cards and accounts that are in use.
Close some if necessary.

Limit Card Uses

Placing strict rules on the use of credit cards for specific purposes will help keep that use from getting out of control. In fact, some credit card companies allow businesses to restrict the usage of accounts to certain categories of purchases which not only helps in managing use, but also helps from a security standpoint.

Manage Money Float

Everyone does it – using that day or so between when a payment is made and when it is late, and how long it takes to clear the banks. It’s a part of wise money management because the more your money stays in your account, the more interest you earn on it. But, running on the ragged edge like this can lead to some sleepless nights wondering if and when your money is going to be where it needs to be in the morning.

Having to pay for credit in the form of interest and other charges just to help your business manage cash flow should force you to become good at minimizing the cost of using that credit. Ideally, using credit cards in a business setting is not something that you intend to do for major purchases, but during tough economic times, you have to do what you can to remain profitable.

Using the principles above will help you stay on track and keep credit cards in their proper place – as a business management tool.

Should You Add Accounts to Your Credit Card Bank?

Most people do not have other accounts with the bank that holds their credit cards. The reason is that they already have established checking and savings accounts with local banks and this option does not present itself when applying for a credit card. And, most banks do not promote this opportunity, either.
But, there are some good reasons for considering doing this. They make sense and can help you manage your money better.

Auto Deposit

The most important of these reasons is the option to auto deposit money from your paycheck into a secondary account. This means that when you get a paycheck, you can automatically assign an amount to go to an account that you have established with your credit card bank. Using this helps you to manage cash flow.

Easy Payments

Making payments to your credit card account becomes an easy transfer from your secondary account into your credit card account. You might even have an automatic payment option which means that you will never have a late payment again which avoids those fees that can accumulate on your credit card account.

Special Use Accounts

Use these accounts to set aside money for special items like building up money for a new car, or down payment for a house. Or, just keep money separate from the rest of your accounts for management purposes. Intermingling money that is specified for particular reasons makes it difficult to maintain control over.

Better Rates

Some banks might offer better rates and lower fees with the opening of an additional account with them. The reason for this is because studies have shown that when customers have more than one account they stay with a bank or financial institution for a longer period of time. Also, banks are more inclined to make offers to customers who are preferred with more than one account.

Good Money Management

Solid money management techniques include using all available tools to help watch cash flow to make sure that payments are made when they need to be and money is saved automatically. And, it does not have to be major money amounts that drive this activity. Just a few dollars per paycheck can help in this whole process.

Budgeting Assistance

Need help allocating money to certain expenses? Opening additional accounts can help with this task, too. You can then take money that is in a specific account and pay designated expenses. When money is auto-allocated it helps prevent spending it on things that it is not intended.

Using credit cards in a responsible way means that you have to get creative and work harder than ever to “win” at the game and make the cards and accounts work for you and not against you. Most people are content to sit idly by and allow fees and charges to accumulate while they struggle to just pay the minimums. And, some are not even able to accomplish that feat.
But, taking control of your credit cards is hard work and involves a total strategy of working a financial plan that will improve your finances, even if it is just a little at a time. That is why this suggestion to add accounts to your existing credit card bank makes sense: it fits the strategy and helps you get be a better money manager.

Ultimately, you have to make better decisions based on sound advice. That advice has to fit your situation and be applicable in ways that propel you ahead towards solid financial footing. Taking the time to check all suggestions out is wise and solid advice. Keep yourself open to new and better ways to reach your financial goals. You’ll be glad that you did.

Why the CARD Act Is Actually REALLY BAD for Students

While many people have written about how the CARD Act may affect the availability and cost of credit in general, little criticism has been raised about the student/under 21 provisions. Here are four ways the CARD Act hurts students or young adults:

1. The CARD Act Is Discriminatory
Sec. 201.B of Reg B issued by the Governors of The Federal Reserve states, “The purpose of this regulation is to promote the availability of credit to all creditworthy applicants without regard to race, color, religion, national origin, sex, marital status, or age (provided the applicant has the capacity to contract); to the fact that all or part of the applicant’s income derives from a public assistance program; or to the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act. The regulation prohibits creditor practices that discriminate on the basis of any of these factors.” Emphasis added.

The Equal Credit Opportunity Act was a major step forward in the advancement of rights for all adults. There was a time, not so long ago, when wives were denied credit because it was taken for granted that their husbands could handle finances for them. How is requiring the parent of someone under 21 (a legal adult in the United States) not the same? The CARD Act completely negates this principal and should be considered contradictory to Reg B. The “test” for discrimination in lending is “disparate impact”, meaning that ANY policy that resulted in one of the protected groups being adversely affected (including under-represented) was de facto discrimination. That’s why banks can’t get around these explicit provisions in marketing by using zip code (commonly known as redlining–it’s illegal), telephone listing (historically many households had the phone listing in the husband’s name), and other such less-than-savory tactics.

When I was a credit analyst at a credit card company, we were always taught that Reg B could easily be remembered by the idea “be fair.” The government regulates that banks CANNOT discriminate on many factors, including age. By requiring “independent means” of paying back the debt (namely, bank statements), students effectively will not receive credit because the system investment required to manage deposit verification simply is not worth the hassle. There’s a reason mortgages have upfront fees to cover that sort of data gathering. Would this part of the act have passed if we said that senior citizens had to have their children sign on their financial obligations? Once we attack this principle, what’s next–an IQ test to enter into a credit agreement?

2. The Card Act Is Too Limited in Scope
So let’s be clear, someone under the age of 21 cannot be trusted with a credit card but can be trusted to go to war for this country, vote and participate in the democratic process, and can TAKE OUT A STAFFORD LOAN from the Department of Education? The average credit card debt for graduating students is said to be about $8,500. If a student takes all of the Stafford loans available to a dependent student, he/she has $27,000 in debt. It could be argued that this debt load is far more damaging than a credit card. After all, default on some student loans and your wages could be garnished. To limit the student marketing restriction for lending products only to credit cards seems to be woefully inadequate–if we do indeed believe that students can’t manage their finances. Students should feel safe now that Congress is watching out for them (sic).

3. The CARD Act Will Stifle Innovation
Bill Gates was a Harvard drop out when he founded Microsoft. Facebook was founded in a dorm room. What other brilliant ideas will be stifled because a young entrepreneur does not have a credit card to cover his or her expenses? Ever tried to buy an interview suit with a debit card when there’s only $45 in your checking account and your tips from bartending Saturday night haven’t come through? Credit cards are a great float tool for students.

Also, they allow students the means to explore the world. Many students use their credit cards to travel for Study Abroad, knowing full well that they will need to pay for it later. Credit cards made it possible for me to travel all over Europe in a way that I will never have the freedom to do as a working adult. This experience has made me a better citizen of the country and the world. This experience was worth having a little bit a revolving debt when I graduated. The ideas that I developed during my study abroad year made all the difference in my ability to relate ideas and experiences to my work life. I would have a much narrower perspective without it and would be a less creative and innovative employee and citizen.

4. The CARD Act Will Hurt an Entire Generation’s Access to Credit
Since FICO and length of credit history are key drivers of lenders’ decisions when making AND pricing auto and mortgage loans, a lack of credit history will make lenders less likely to grant credit to these students later in life. Imagine being offered a car note 200 basis points higher than someone ten years older than you because Congress made it illegal for you to have a credit card. Don’t forget, car insurance companies use credit scores to quote rates. Scary isn’t it?

In short, in their rush to pass a bill that would institute new reforms to the credit card industry, Congress forgot to ask themselves about the unintended consequences. Students are an easy target because they have fewer lobbyists screaming on their behalf. Once this law is enacted, a student who is denied credit based on this law should launch a test case for discrimination. Lawyers, start your engines.

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