CARD Act affects students

The Credit Card Accountability, Responsibility and Disclosure Act (CARD) took effect on Monday, Feb. 22. Among other things, the new law seeks to discourage college students from racking up excessive debt. Under the new law, anyone under 21 must have a parent co-sign in order to get a credit card.
The new regulations have led to mixed reactions in the student community.
“It’s good because being a student, you don’t always know what to expect,” said Kimberly Stoddard, a Weber State University senior major in nursing, who works as a cashier. “We have people come into work. They have a $15 minimum monthly payment. Seven dollars of it might go to interest and then they get a $30 late fee and it never stops. It’s funny but sad because their balance gets bigger instead of getting smaller.”
Not everyone agrees with the regulations, however.
“Well, I’m 19 and getting married,” said Mandie Miller, a WSU sophomore studying graphic design. “I’m on my own. So I should be able to get my own credit card. I feel you should have to prove you can be responsible and that should be good enough.”
Some students remain unaffected by the changes. Michael Thayne, a WSU junior majoring in manufacturing engineering, has never owned a credit card.
“I use my debit card,” Thayne said. “I prefer it to pay tuition and my other expenses. It’s easier and I can keep myself from having payments.”
While the law is designed to keep college students from acquiring excessive credit card debt, some feel that the age limit will not be enough to keep irresponsible students from getting in financial trouble, and will cause hardships for students who would use the card responsibly.
“I don’t particularly agree with the age limit,” said Emilee Harbertson, a senior majoring in human performance wellness management. “I don’t think it should be based on their age. It should be based on the responsibility of the student. I have a friend who was cut off from her parents at age 18. She is independent of her family and she has almost had to rely on her credit card because she didn’t have enough at her age to support herself. I think for the most part she lives within her means. Most of it is necessary debt at this point.”
The reality of living without a credit card would mean financial adaptations for many students.
“If I didn’t have a credit card, I would have to be more dependent on my parents,” Harbertson said. “I think it would be really tough to survive as a college student if there was a problem like a car accident or medical issue. Education is the key; if students know how to budget and use their credit cards responsibly, they won’t get into as much trouble.”
Another change brought about by this new law is that credit card companies can no longer market on college campuses or college sporting events. This change will prohibit credit card companies from offering incentives to students willing to sign up for a card.
“I hate how credit card companies come around and offer a free six-inch sub or something if you sign up,” Stoddard said. “I’m glad they are restricting that.”
The new law also requires credit card companies to show how long it will take individuals to pay off the balance on their cards, and how much interest will accrue with only the minimum payment.
“I would probably agree that is a good thing,” Harbertson said. “Credit is a virtual thing. It’s not a reality. If there is a hard copy that shows where you are at, it might encourage people to be smarter. It’s kind of like being a diabetic. It’s not till later that you realize what kind of trouble you are in. You can’t feel or see the immediate effect of sugar on the body, but it catches up to you and will plague you.”