Credit Card “Relief” Penalizes College-Aged Credit Seekers
As if establishing a solid line of credit weren’t hard enough, the Obama Administration’s sweeping credit card “relief” is imposing new restrictions on College students who are looking to register for a credit card.
In the environment in place before the credit-restriction legislation, a competitive market existed, especially in and around college campuses, in which a responsible student seeking credit would be able to shop around, and seek the best card possible for their given situation. Moreover, it allowed some students to make a “fresh start”, freeing them from reliance on their parents’ credit score, which in some cases is so restrictively poor it hinders their opportunity to effectively pay for college. This was a good thing, because it forced the market to compete for new blood, making it easier for responsible students to establish their credit, and begin developing trust with their creditors.
The current legislation on the other hand, prevents those under the age of 21 from obtaining a credit card, unless they have a co-signer (who is, in turn, disinclined to put their credit score at risk), or a previously inordinate amount of income or assets. The first restriction is a boon to people like me, who’s parents have abysmally low credit. The second is a boon to those who may not have a car with enough value, or a job that brings in enough income to “warrant” their limit (Note: CNN interviewed a student with an annual income of $15,000 who could barely get a $700 card).
This isn’t just an isolated incident either. This is a general trend that’s been progressing faster and faster in the last decade or so. People wonder why teenagers and young adults don’t seem to bear the responsibility of their parents, and grandparents? It’s not because the current generation is any more lazy, or inherently irresponsible than those before me. It’s a trend based on conditioning, from a nanny-state government; one that deafens the blow of irresponsible decision making.
Yes, credit-card companies do coax college-aged students into signing up for cards at registration booths, with swag incentives, and opportunities for rewards, and yes, some people use credit as “free money”. However, there’s nobody twisting their arm. This is a free decision, made in a free market, by adults, and I think that’s something the federal government should do well to remember. The government is “protecting” what should be grown adults, and as a result, they’re doing nothing but extending adolescence. Tags: Economy
