As teenagers start to mature, and get older they want to be treated like an adult. They tend to want more things that require responsibility. A debate has begun on one of those things. Should teens be able to get a credit card? Starting off with bad credit at a young age can be deficient later on in the future. Credit is the ability of a customer to obtain goods or services before purchases, based on the trust that payment will be made in the future. This means that before you buy/rent something very valuable, or even buy a house the companies will always look at your credit to make sure all of your bills have been paid and that you can be trusted to pay them back any money owed.
In February of 2010 a new law was passed in the House and Senate. It was signed by Barrack Obama, affecting many things having to do with many credit card issues. The regulation states that anyone under 21 cannot get a card unless they have a co-signer, or can prove that they are reliable enough to have one. A few of the people responsible for signing off on this new law are accepting this change because th...
At the end of the day, credit shows true financial independence and having excellent credit can get you what you want and save you a lot of money in the long run with the possibly of lower interest rates. Credit is a universal number that landlords, lenders, finance company and even an employer look at to determine your
CFPB activities on credit cards arise concerning, first, the CFPB CEO made them “more difficult to use.” Once an individual becomes a client of CFPB the alternative access to “hard cash” becomes fairly possible. As banks are already expensive for the customers of CFPB due to their profit margins, the other “illegal loan sources” become even more unreachable (Murray, 2017). So, certain monopolizing tendencies can be traced.
García, J. A. X. E., Zeldin, C., & Lardner, J. (2010). The Credit Card Industry Burdens Borrowers with Unfair Interest Rates and Hidden Fees. In J. Tardiff (Ed.), Current Controversies. Consumer Debt. Detroit: Greenhaven Press. (Reprinted from Gotcha!, Up To Our Eyeballs: How Shady Lenders and Failed Economic Policies Are Drowning Americans in Debt, pp. 37-53, 2008, New York, NY: The New Press) Retrieved from http://ic.galegroup.com.rproxy.iwcc.edu
They expressed that credit card companies began directing their focus on college students in an attempt to broaden their market share in the late 1980s (Robb and Sharpe, 2009, p. 25). During that time, students were encouraged to obtain credit cards by way of on-campus enrollment, direct mail promotions, on/ off-campus advertisement. “By 2001, over three-quarters of all undergraduates had one or more credit cards” (Robb and Sharpe, 2009, p. 25). These elemental advancements in how and to whom credit cards were advertised resulted in credit cards becoming a way of life for today’s college student. As the rate of college students who own credit cards grew so did the apprehension that credit card
High school seniors need to be taught economic responsibility. Economic responsibility should not only be taught in the schools, but in the home as well. As we have discussed in prior chapters, some of the reason we are in the mess we find ourselves in is due to the overspending not only by individuals, but the government as well. Arthur MacEwan states, “U.S. consumers have a reliance on credit and fail to look beyond the present” (2012, p. 6) As a consumer the high school senior needs to be taught how to look beyond what they see. How are they going to pay for the credit they have taken out, if our country hits another recession and they are left without employment?
We now live in a society where kids start their adult lives “in the red”, as their debt exceeds their income. (Draut, 2005) 60 years ago this wasn’t the case, as told by Studs Terkel in Hard Times-An Oral History of The Great Depression, “I had no idea how long $30 would last, but it sure would have to go a long way because I had nothing else. The semester fee was $22, so that left me $8 to go.” (Turkel, 1970) Imagine that! 60 years ago tuition was $22 dollars a semester! Furthermore, 45% of adults under 35 state they find themselves resorting to credit card use for basic living expenses like rent, groceries and utilities, (Draut, 2005) adding to their mounting debt. This use of credit puts them into an entirely different category of indebtedness: survival debt. (Draut, 2005) Imagine being forced to borrow to live! (Draut, 2005) If a car breaks down or someone gets sick, the only option available is using a credit card. (Draut,
In the Spring of 1949, Alfred Bloomingdale, Frank McNamara, and Ralph Snyder came up with a new plan for a modern type of credit card. While out to lunch one day in New York, the President of the New York Credit Card Company Frank McNamara had forgotten his wallet at home (Evans 53) . He had a thriving business yet credit cards at the time were only given to selected people. The first modern credit cards was introduced by Diners Club Inc. because of this. The modern day credit card is a small, plastic, rectangle, more than three inches. There is an account number and a name that is embroidered on the front. The first credit card did not look much like what credit cards look today. They were made out of paper not plastic, and they weren’t cards they were a lot like a tiny booklet that had all the same information the modern day credit card has now(Weiss 38). The modern day credit card can carry up to a $200 line of credit meaning you can buy anything you want at that certain time and pay it back at a later date such as months or a year after that time. Some companies require you to pay the full amount of your charge on the card at once, but some allow you to pay in small amounts. In order to apply for a credit card you must be at least eighteen years of age and if you are not you must have an adult sign the paperwork to apply for one. Prior ...
...: A Critique of the Global Credit Card Society." International Journal of Comparative Sociology 38:1 June 1997, 77-82.
Credit to buy goods or services has been around since the early 1900s, when consumers would use credit to buy goods or services and pay for them at a later date. The bill would send the bank containing a description of the items bough, their price, tax, and overall total. The consumer would visit to the bank and pay it before a set date set by the retailer. Today, “7 out of 10” Americans have one or more credit cards. Credit Card companies introduced the ‘chip,’ a magnetic strip in cards to prevent fraud in brick-and-mortar stores, in late 2015. Major credit card companies, such as Visa and MasterCard, pushed the new cards onto their cardholders by mailing out chip cards and letting the cardholder know their regular card
Our teenage girl is now an adult, and she still fails to spend her money wisely. She is head over heels in debt, and all the items she purchased have not granted her any happiness. Learning to make money and to spend it wisely, are valuable life lessons, and credit cards are notorious for hindering that learning process. However, credit cards themselves are not completely evil! It all depends on how one uses them. In the end, I will leave you with a rule of thumb for money spending, stated plainly by Thomas Jefferson: “Never spend your money before you have earned
In addition Terriljo (2013) stated that there were lot of attractive offers, benefits and discounts for a credit card holder. He also says that the credit card holders will be enjoying purchasing protection, extended warranty, easy instalment plans, and insurance packages that why Filipino’s really wanted to have one. Some people believe that the college students should have credit for emergency purposes, easier to get an...
The use of credit cards do have their benefits. Credit cards tend to be more convenient for shopping because they’re effortless to carry around and they make it painless to return purchases. They also make tracking of spending a lot simpler due to the credit card statements. But, they also are have their disadvantages. Credit cards make it easier for consumers to spend more than what they can afford. They also mean more paperwork for people to go through.
Having good saving skills is essential to having a credit card. Too often people get credit cards and head straight to the mall and buy all these unnecessary items. People who use credit cards with no intent on paying the full amount should be extremely frugal when spending money with credit cards. Missing a single payment on a credit card bill can make the interest triple and they will do this without hesitation or warning.
Credit cards can be invaluable tools for college students. Using a credit card is more convenient than cash, and may help a young adult build credit that will be useful throughout his adult life. However, before a student applies for a credit card, he needs to know how credit works and the consequences associated with the misuse of a credit card. Credit can be very helpful, but may also be dangerous if one does not use it properly.
Kids need to learn about credit so they will handle credit responsibly as adults. In fact, there are so many credit cards in American society that there are more to come . In 2011, A poll showing that most kids will likely grow up to use credit cards responsibly than people who start using credit as an adult.