Calls To Raise The Legal Minimum Age For Credit Card Applications To 21
Posted in Finance on 08/11/2010 09:06 am by admin
Adam Singleton asked:
Rising levels of bankruptcies amongst young people has prompted calls from debt management specialists Debtmatters to raise the legal minimum age for applying for UK credit cards to 21. By doing this they hope that people will take the issue of being in debt more seriously, and realise the dangers of being in heavy debt so young.
Debtmatters operations director Michael Shirley is worried about the shift towards reliance on funding lifestyles on credit cards. He said: “We are living in a buy now, pay later culture in which many people consider being in debt to be perfectly normal and nothing to worry about. ” Believing that people develop the habit early on, Shirley thinks that delaying the ability to get credit card deals until later in life is a good way of instilling better financial discipline. He points out that reckless spending earlier in life coupled with high interest rates can create a burden of debt that is almost impossible to remove, leading to crippling financial situations that could give rise to bad debt ratings and even bankruptcy.
Shirley added: “Raising the age at which young people can legally access credit cards would provide a short-term solution and allow us time to agree a sustainable long-term solution.” Regarding that long-term solution, Shirley believes that financial management classes educating youngsters about financial independence and the dangers of accumulating debt, should be run in schools, colleges and universities.
Barclaycard, while not going so far as to ridicule Debtmatters call for the raising of the legal age, suggested that cards were vital for helping students through their studies. “Cards can be a lifeline for students managing a tight budget,” said Barclaycard UK cards managing director Amer Sajer. “They can help students make the most of their time at university as well as establishing a good credit record – but only if used sensibly.” he added.
However, ‘using them sensibly’ is the key, agree both Debtmatters and Barclaycard, but unfortunately the evidence suggests that many youngsters don’t. And that starts with the application process were many don’t compare credit cards and the benefits they bring, considering things such as affinity or reward schemes far more important than the interest rate they will have to pay on outstanding balances. Many are also quite happy to run up debt paying huge amounts of interest each month, while only repaying the minimum amount.
Students believe that their debt is only temporary as it will be repaid once they get a job upon graduation, and in many cases that may well be true. However, with the average 2006 graduate leaving university with a debt of
Rising levels of bankruptcies amongst young people has prompted calls from debt management specialists Debtmatters to raise the legal minimum age for applying for UK credit cards to 21. By doing this they hope that people will take the issue of being in debt more seriously, and realise the dangers of being in heavy debt so young.
Debtmatters operations director Michael Shirley is worried about the shift towards reliance on funding lifestyles on credit cards. He said: “We are living in a buy now, pay later culture in which many people consider being in debt to be perfectly normal and nothing to worry about. ” Believing that people develop the habit early on, Shirley thinks that delaying the ability to get credit card deals until later in life is a good way of instilling better financial discipline. He points out that reckless spending earlier in life coupled with high interest rates can create a burden of debt that is almost impossible to remove, leading to crippling financial situations that could give rise to bad debt ratings and even bankruptcy.
Shirley added: “Raising the age at which young people can legally access credit cards would provide a short-term solution and allow us time to agree a sustainable long-term solution.” Regarding that long-term solution, Shirley believes that financial management classes educating youngsters about financial independence and the dangers of accumulating debt, should be run in schools, colleges and universities.
Barclaycard, while not going so far as to ridicule Debtmatters call for the raising of the legal age, suggested that cards were vital for helping students through their studies. “Cards can be a lifeline for students managing a tight budget,” said Barclaycard UK cards managing director Amer Sajer. “They can help students make the most of their time at university as well as establishing a good credit record – but only if used sensibly.” he added.
However, ‘using them sensibly’ is the key, agree both Debtmatters and Barclaycard, but unfortunately the evidence suggests that many youngsters don’t. And that starts with the application process were many don’t compare credit cards and the benefits they bring, considering things such as affinity or reward schemes far more important than the interest rate they will have to pay on outstanding balances. Many are also quite happy to run up debt paying huge amounts of interest each month, while only repaying the minimum amount.
Students believe that their debt is only temporary as it will be repaid once they get a job upon graduation, and in many cases that may well be true. However, with the average 2006 graduate leaving university with a debt of
Apply Online | Student Credit Card Applications
Posted in College And University on 02/22/2009 08:54 am by admin
College Credit Builder asked:
At www.goodstudentcreditcard.com students can compare the best student credit card offers currently available for college students and apply online. It goes without saying that responsible credit card use can lead to a lifetime of low-interest rate loan approvals for auto loans, mortgages and other forms of consumer credit. Alhough students tend to have a limited credit history and lower reportable incomes, good students enrolled in colleges and universities throughout the country are often given the opportunity to receive credit and to start building a credit record early. This is an opportunity that should not be taken lightly, particularly in light of the continuing credit crisis which has made it difficult for many Americans with good credit records to receive new credit cards, auto loans and mortgages.
Student credit cards issued by Discover and Capital One are specifically designed for student applicants. Some of the features offered by these credit card issuers include:
• No Annual Fee
• 0% Interest for a fixed period of time
• $0 Fraud Liability Guarantee
• Cashback Bonuses
During this period of economic instability, illiquidity in the credit markets, uncertainty in the stock market, and the softening real estate market, one thing remains constant – good students should be given the opportunity to build a credit history. Responsibility, however, is essential. It is important for students to remember that if they don’t have enough money to buy something now, you should consider saving up until you can. Credit cards are most beneficial when then balance is paid in full every month. Treat them like cash in your wallet. In these tough economic times, where credit is proving to be more difficult to come by, it is important to establish a strong credit profile by obtaining credit early and maintaining a consistent payment history. Student credit cards issued by Discover and Capital One are perfectly designed for student applicants.
Visit www.goodstudentcreditcard.com to apply online.
http://www.articlesbase.com/college-and-university-articles/apply-online-student-credit-cards-660191.html
LOYD
At www.goodstudentcreditcard.com students can compare the best student credit card offers currently available for college students and apply online. It goes without saying that responsible credit card use can lead to a lifetime of low-interest rate loan approvals for auto loans, mortgages and other forms of consumer credit. Alhough students tend to have a limited credit history and lower reportable incomes, good students enrolled in colleges and universities throughout the country are often given the opportunity to receive credit and to start building a credit record early. This is an opportunity that should not be taken lightly, particularly in light of the continuing credit crisis which has made it difficult for many Americans with good credit records to receive new credit cards, auto loans and mortgages.
Student credit cards issued by Discover and Capital One are specifically designed for student applicants. Some of the features offered by these credit card issuers include:
• No Annual Fee
• 0% Interest for a fixed period of time
• $0 Fraud Liability Guarantee
• Cashback Bonuses
During this period of economic instability, illiquidity in the credit markets, uncertainty in the stock market, and the softening real estate market, one thing remains constant – good students should be given the opportunity to build a credit history. Responsibility, however, is essential. It is important for students to remember that if they don’t have enough money to buy something now, you should consider saving up until you can. Credit cards are most beneficial when then balance is paid in full every month. Treat them like cash in your wallet. In these tough economic times, where credit is proving to be more difficult to come by, it is important to establish a strong credit profile by obtaining credit early and maintaining a consistent payment history. Student credit cards issued by Discover and Capital One are perfectly designed for student applicants.
Visit www.goodstudentcreditcard.com to apply online.
http://www.articlesbase.com/college-and-university-articles/apply-online-student-credit-cards-660191.html
LOYD