Miami Credit Card, New Rules Coming

By: EconomyWatch Content Team   Date: 28 January 2010

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In the past few months, news came down from Congress pertaining to the Miami credit card for people under the age of 21.  It has been proposed that for people under 21 to secure a card, more restrictions would be implemented, making it harder for them to be approved.  The goal of this proposal is to put measures in place that would prevent the younger generation from getting into debt.

Not only would this new federal law affect people that already have a Miami credit card but also those that want one, regardless of age.  Now, some of the new provisions will not go into effect until February of 2010 so for people under the age of 21 to get a Miami credit card account, this is the time to act before it becomes too late.

The problem seen with many credit card companies, banks, and credit unions is that for a long time, they have been targeting the younger generation to a point of abuse.  Unfortunately, many teenagers are not business smart when it comes to credit cards.  As naïve young adults, many will apply for any Miami credit card only to discover they were provided with too much credit that leads to overspending or high interest rates and fees.

Changes in law that will be in effect within the next month for people 21 and under that have a Miami credit card account is broken down as following:

·    To secure a Miami credit card, anyone under 21 will need a cosigner, whether a parent or guardian.  The only exception would be if the individual could provide proof of income with a steady job or some other means for making payments on time for all charges made.  Then, if the individual wants his or her credit line to increase, the cosigner would have to make the request and give consent.

 
·    It will no longer be possible for credit card companies to give free things away on college campuses such as tee-shirts, food, etc as a means of getting students to complete an application.

·    Credit card companies, banks, and credit unions will not be allowed to market prescreened offers to anyone under the age of 21.

·    Whenever an agreement is made between credit card marketers and colleges, universities, and alumni associations, the information must be disclosed.  This way, contact information for students and alums wanting to secure a Miami credit card could not be shared.

·    Parents that have a Miami credit card account can authorize for a minor child to use the card

The number one reason issuing companies work hard to get young adults to secure a Miami credit card or any credit card is because history shows that the first card the younger generation gets is the card held on to the longest and used the most.  Typically, younger people do not pay much attention to terms, instead simply agreeing to an offer from the first issuing company that gets their attention first.

A race between credit card companies, banks, and credit unions begins, each vying for business of people under 21.  This is one of the reasons that the government is now making such drastic changes.  This is why soliciting young adults on college campuses has been such a huge part of marketing in that issuing companies know all they need to do in most cases is make an offer for a Miami credit card look appealing and the deal is done.

However, with more than 50% of students going to college in Florida being on financial aid and parents struggling along with everyone else due to the economy, new laws had to be devised to protect people under the age of 21.  While young people might complain about the changes for securing a Miami credit card account, the laws are actually for their protection.


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