Some Parents Unable To Get Credit Cards
Stay-at-home parents may have difficulty obtaining credit cards due to new federal regulations designed to discourage debt.
Because most parents who raise children from home do not have an ability to make a paycheck, they are considered higher risk for credit card debt, even if their spouse works, according to NBC. New regulations that go into effect in October. These policies prevent any person who does not have their own individual income from being approved for a card.
Despite the unhappy response from affected parents, one financial expert believes the rule will protect them.
"Say you get a divorce, and you are out on your own," Matthew Tuttle, a wealth management representative, told the news source. "You've got no credit history. Now, [there are] just so many unattended consequences to trying to protect people from getting themselves into debt. I just don't think anyone really thought this through."
Even though the rules aren't planned to become law until October, credit card issuers may enforce these policies at any time, the news source added.