Future UVU students may feel the effects of the new Credit Card Accountability Responsibility Disclosure Act that took affect last month to help protect consumers.
As of Feb. 22, college students are no longer able to get credit cards unless they have a co-signer or can prove they have an ability to pay. Credit cards also will not increase the limit of anyone under the age of 21 unless it is approved by the co-signer.
To help ease the temptation, credit cards are not allowed to hand out freebies or other marketing on college campuses.
“I don’t know much about it,” Andrew Jones, a communication major at UVU said. “I don’t want to be in debt, but I guess it will limit them better.”
Allison Sego, a UVU student, thinks that these new laws limiting credit card approval and the increase of interest rates will help others stay out of financial trouble.
“I have seen my sister and a lot of other people get into trouble with their credit cards,” Sego said. “I don’t think it is a bad thing.”
According to creditcards.com, President Barack Obama wants to help Americans who “found that credit cards are a one-way street. It’s easy to get in, but impossible to get out.”
Sego said her mom wants her to get a credit card to help her grow up.
“My mom wants me to get one,” Sego said. “But I don’t feel confident in my financial situation to have one.”
Although the credit cards laws have changed, creditcards.com still tells consumers to keep “good credit card habits.” Make sure you are paying your bills on time and make more than the monthly minimum payments.
Creditcards.com quotes Sen. Christopher Dodd of Connecticut on his views of “gouging the hardworking families” with rate increases and fees.
“With the signing of this bill, President Obama has ushered in a new era where consumer protections will be strong and reliable, rules transparent and fair, and statements clear and informative,” Dodd said.
Jeremy Conterio believes this will “separate the responsible and irresponsible” and help bring back the original “black and white” system by weeding out certain people.
“Even though the laws have been changed, you will always have the extreme cases where they max out their cards and declare bankruptcy to get out of the debt,” Conterio said.