Even the young should be concerned with protecting their credit score

10.18.09
By Timothy Green

College students are expected to benefit under the Federal Credit Card Accountability Responsibility and Disclosure Act, which will protect them from unscrupulous marketing tactics that can ruin their credit score for years to come.

However, students are still fair game for credit card marketers until February, and as a result company representatives have been visiting the nation's college campuses this fall - potentially for the last time.

The reform bill has gained widespread attention for the limits it will place on card companies when it comes to imposing punitive interest rates and late fees for late payments and minor credit missteps. However, the law also contains provisions that will bar students under age 21 from getting credit cards unless a parent or guardian co-signs for it or unless they can otherwise demonstrate the ability to pay their balances off.

While time is winding down for marketing credit cards to college students, lenders may have even less time if some members of Congress have their way. That's because legislation has been filed that would make the credit card reforms take effect in December as opposed to February.

When it comes to maintaining a good credit score, college isn't always the place to start learning responsible spending habits. Nationwide, a number of school districts have responded to the recession and financial meltdown by mandating personal finance classes for children as young as grade school age.

A recent report in the Minot Daily News cited a local credit union official who spoke to high school seniors in the North Dakota city about personal finance, with an eye on helping them avoid actions that can damage their credit score.

Some of the tips offered to the students, according to the newspaper, included checking credit reports regularly and getting started on building a credit score by asking parents to co-sign for an auto loan or credit card.

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It's never too early to learn about responsible credit.