College Students Obtaining Fewer Credit Cards
Since the Credit Card Accountability, Responsibility and Disclosure Act of 2009 was implemented, studies have noticed a stalling in the number of college students who accrue credit card debt.
In 2010, the average balance for those ages 18 to 25 went up 0.4 percent. This increase is minimal compared to previous years, as the number was 2.4 in 2009 and 13.3 percent in 2007.
"It is definitely more difficult for students under 21 to get a credit card now," Paul Gregg, a personal finance teacher at the University of Central Florida and a former corporate executive, according to The Orlando Sentinel. "And credit card companies aren't giving out free T-shirts and pizza now to lure kids in. So the law is working from that standpoint. But there are a lot of other factors to consider.
Gregg added that it is still too soon to give the CARD Act full credit for the change, the report said.
The Credit CARD Act has made it more difficult to give credit cards to those who are under 21. The law also extended payment windows and gave extra time to let cardholders know about rising interest rates.