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Obtaining a student credit card has become even more difficult especially after the Credit Card Responsibility and Disclosure or CARD Act came into being. Before the CARD Act came into existence, issuers were having a field day by holding camps and advertising their products on campuses. However, all of that is uncommon now and the CARD Act has brought with it stricter guidelines and obtaining a student credit card is no longer an easy affair. The main aim of the CARD Act is to curb credit card usage by young adults as they do not use it responsibly and end up getting into a big financial mess.  The issuers also cannot charge excessive fees and hike the rates according to their convenience. The CARD Act aims at reducing the use and abuse of the credit cards by youngsters.

The CARD Act has three main provisions for the student credit cards and in order to qualify for the student credit cards you will need:

  • Young adults who are below 21 years of age will have to obtain the signature of their parents or guardians or any other qualified individual who will be willing to take the responsibility in case the student defaults payments.
  • The young applicants will have to complete a financial education course or a certified financial literacy course in order to educate themselves about the problems that the credit cards could cause them in the future. They will be exposed to the problems faced by young adults in the past.
  • Now the card issuers will have to gather enough proof that the student has the ability to pay the monthly payments and the card debt. If there is no proof of income and no job, then there is no credit card either.

In spite of the new CARD Act regulations there are some financial institutions that don’t require a co-signatory or other income proof.  Credit card companies are still advertising on campuses as per a recent survey that was conducted.  As per the new law consumers will have a lot of protections and credit cards are required to be more transparent in their dealings – in terms of accountability, transparency, as well as responsibility.

If you do opt for the best student credit card, ensure that you keep the monthly payments low and don’t run up huge debts that you cannot afford to pay. Use the card if and when absolutely necessary.