New credit card rules go into effect next weekPosted: Updated:
A new credit card law, set to go into effect next week, will prevent anyone under 21 from getting a credit card unless they have a parental signature or sufficient income.
The new measure is designed to prevent college students from graduating and finding themselves with massive debts or a poor credit history.
If a person under the required age does not have sufficient income, they will need a co-signer on the application, most likely a parent.
Gail Hillebrand of the Consumers Union says parents should consider waiting until a college student's senior year before offering their signature for a card. "Most college students are going to be 21 by the time they're seniors," says Hillebrand. "And it's a perfectly good time to get that first credit card."