This fall, it’ll be harder to fall prey to credit card peddlers offering freebies on campus. That’s because they’ve been banned from luring college kids into debt on school grounds
. You may find credit card company reps just off campus however, so beware. That free T-shirt, mug or teddy bear could just be the beginning of a world of financial hurt.
Among the other new measures preventing kids from spending more than they can afford, parents are now required to co-sign on credit cards for kids younger than 21 if applicants can’t show proof of sufficient income, a figure that varies depending on the bank. For instance, you might need pay stubs to prove that you make about $2,000 a year, according to Smart Money
are also an option for those who are just starting to build credit. With these cards, you secure the credit limit you want by paying it upfront
. However, you’ll have to pay back that amount, or a minimum payment amount, each month.
Photo Credit: The Consumerist