A new law bans plastic for those under 21 unless they have enough income or get someone to co-sign. There's no agreement on how much good the legislation will do, though.
At age 18, Americans become eligible to vote, enter the military, serve on a jury and marry without parental consent, in most states. But starting in February 2010, there will be one less opportunity with that milestone: getting a credit card.
On May 22, President Barack Obama signed into law the Credit Card Accountability, Responsibility and Disclosure Act of 2009. The bill restricts credit card issuers from raising interest rates without warning, penalizing customers who pay on time and levying excessive fees.
There's also a provision that specifically concerns young people: Under the new law, no one under age 21 can get a credit card unless a parent, guardian or spouse is willing to co-sign or unless the young adult has proof of sufficient income to cover the credit obligations.
Speaking on the Senate floor in May, Sen. Barbara Mikulski, D-Md., said the bill aims to prevent credit card companies from "targeting college kids to weigh them down with debt before they even graduate."
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