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Credit Card Applications » News » Other » The appropriate age to get hold of a credit card

The appropriate age to get hold of a credit card

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The appropriate age to get hold of a credit card

All of us have an opinion about credit cards. Some feel that they are terrible the others feel they are great. It all depends on whom you ask.


We have all thought of using cards at some point in time as we have a right to apply, and use a card as long as we are old enough to sign on the dotted line. The eligibility is 18 years of age. However, because of some changes in the CARD Act we are no longer able to enjoy these privileges we once had.


As per the new guidelines in the CARD Act, you can apply for a credit card only when you are 21 years of age or above. If not, you will need to show proof of employment or have a co-signer. This law has come into being since the 22nd of February.


However, this has left many wondering if it was the right move, and what is the right age to obtain a credit card with no strings attached? No one knows what exactly has been accomplished with the new rules.


This whole age-related rule seems somewhat outdated in today’s times. It is understandable when young adults below 25 years of age are considered insurance risks as there are statistics to prove facts. This rule does make sense, as even rental companies don’t rent vehicles to people belonging to that age group, or else the terms and conditions for rental would be very expensive. However, there is no evidence to support that a 21-year-old is much wiser, and can manage a card better than a 20-year-old or than the ones who are younger.


There is no credible proof that a 21-year-old is not credit savvy, nor is there proof that a 50-year-old can manage the card better. There is no age limit to proper financial management.


The CARD Act states that there should be someone to co-sign irrespective of the age or the income of the individual. This only means dual liability, and dual risk for both the applicant as well as the co-signer, as both will have to be cautious, and any mismanagement could reflect on both the credit histories.


For instance, if the parent happens to run up a balance on the credit card, the child will also suffer, and vice versa, and the lender will hold both parties responsible. Things will not stop happening, it will only get delayed for 3 more years.

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