The CARD act and its implications on stay-at-home... - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » The CARD act and its implications on stay-at-home moms

The CARD act and its implications on stay-at-home moms

The CARD act and its implications on stay-at-home moms
The content is accurate at the time of publication and is subject to change.

While the CARD Act was aimed at offering consumer protection from their card issuers, it seems to have had the reverse effect. Instead of protecting customers the CARD Act will be having a negative impact on some customers like the stay-at-home moms as it would be curtailing them from obtaining credit cards on their own without the co-signature from their husbands. This impact would be felt even by the stay-at-home husbands, but on a small scale.


As per the CARD Act, the credit card issuer has to verify the income or the repaying capacity before letting an individual open a new account. In instances where the income is absent, a co-signatory would be required. This was actually meant for students who were under 21 years of age, and prevent them from opening a new account, or getting into credit card debt.


Hypothetically, this makes sense – if those with no income are refused a credit card, they will not get into further debt as they cannot pay. However, the problem here is that there are many people, who do not wish to work and hence have no income, but still manage to engage in commerce for the sake of their families or households.


The Wall Street Journal was the first to point out the CARD Act’s requirement where the creditors are to consider only the applicant’s individual income while processing credit card applications instead of the household income. Even if the applicant has access to funds through an employed spouse, it is essential to show individual income, and zero individual income would mean no credit card approval. The worst part is that the co-signer will also have to apply for the card. This means that there is a dual liability, and any negative reporting on the credit report due to non-payment would reflect on both credit reports.


This is not really the first time where women have been treated unfairly, or have been on the wrong side of the law, or while policy-making decisions were made.


This provision in the Act is not going to hurt just the women, and men who have no income proof, but it would hurt the retailers too. As this means that those who wish to make a huge purchase should essentially have a job, and those who want an increase in credit limit to make a larger purchase must also have a job, irrespective of whether they can afford that purchase or not.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

A New Priority Pass Restaurant and Lounge in Washington D.C.

Posted: July 16, 2018

Hitting the lounge for some rest and relaxation when flying can be a great perk. And now people with Priority Pass membership - or a credit card giving them Priority Pass lounge access - have two new options to check out when passing ... Continue reading
New LL. Bean Credit Card

Posted: July 13, 2018

L.L. Bean's credit card portfolio was purchased by Citi Retail Services, and they have now partnered with MasterCard to launch a new credit card, offering 4% on purchases made at L.L. Bean. But that is not all; With the L.L. Bean ... Continue reading
5,000 Bonus Points From Hilton and Amex Offers

Posted: July 12, 2018

Are you planning a trip and thinking about staying at a Hilton Hotel? If so you might want to check out this new deal at Amex Offers, providing cardholders with 5,000 Membership Rewards points when they book a stay of $250 or more at ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
0% Intro APR on Balance Transfers and Purchases for 18 months. After that, the variable APR will be 15.74% - 25.74% based on your creditworthiness*
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!