NJ may raise age for obtaining credit card

[Brendan Perez]

From the Daily Targum:

While turning the age of 18 qualifies one as an adult, it doesn't make an individual eligible to legally buy alcohol or gamble.

Now, getting a credit card without parental information may make that pair into a trio.

A new amendment, state Assembly Bill No. 3454, reported out of the Assembly Consumer Affairs Committee last month, will make it unlawful for a credit card to be issued to an individual under 21 years of age who is claimed as a dependant by a parent or legal guardian, if passed through legislation.

Since then, the bill, sponsored by Asm. Neil Cohen, D-20, has been referred to the Assembly Financial Institutions and Insurance Committee.

The Consumer Affairs Committee's support for the bill stems from the idea that it would remove the parent/guardian's joint liability for debts acquired by the applicant with the account before the individual has turned 21.

But some students feel that if a credit card cannot be issued at all and if people between the ages of 18-20 can't handle finances on their own, they may not be prepared to handle it once they turn 21.

"Once you're an adult, you need to learn about finances for yourself," Douglass College sophomore Nicole Harencak said.

And even more so, what if parents don't want to sign for their children?

Rutgers College first-year student Amin Gillespie said any adult should have the right to a credit card. Gillespie said for those who do not have close relations with their parents, it would severely hinder their chances of getting a credit card, especially for those who do not attend college or live on their own.

"A credit card is a good way for a young adult to build their credit," Gillespie said.

Stephanie Sella, loan processor of Magyar Bank in New Brunswick, offers other options. She said that if this amendment does pass legislation, and parents do not want their children having credit cards, there is an option of a debit card or secured credit cards

[yovimi]

Well.... the Puerto Rico credit card age, is 21. But our age of majority is 21 as well. Jackasses.

[OmegaWolf747]

I don't see how they can legally do that. Once you're an adult, your finances are your own business.

[XavierAKadafi]

Yeah, I don't see why they're busying into people's finances...

[Yasha]

Probably because 18-20 year olds don't vote that much.

[SciVille]

It's another infantilization scheme, very similar to the argument used for youth prohibition. They think that someone that young getting a credit card would think "ooh, free money!" and get themselves into incurable debt. And, just like any other arguments, it can be countered with the simple don't punish the rest of the demographic because of a few idiots.

[MJB_919]

Who exactly is this meant to benefit?

[Balore]

It's meant to benefit the politicians. If there is a problem with young people getting into debt, the politicians can say " See whe're doing something about this." Damned corrupt politicians scapegoating youth for all of society's problems!

[Dave Varney]

Brendan, thank you for alerting me about this bill. I am planning on writing a letter to the Assembly Financial Institutions and Insurance Committee members, signing the letter with my parents address in Princeton, NJ. I also may print off a flyer on the bill and post copies at NJ colleges. I am trying to come up with reasons to oppose the bill. One thing that is unclear from reading the bill is: are the signatures of both parents required or would one parent's signature suffice? This is important for the large number of students with divorced or separated parents. Another question I have is, why is this bill necessary? Several times in the bill, the authors emphasize a requirement that the credit card account owner and signatories must prove they have the income to repay any debts or liabilities. Obviously, any financial institution would verify this information before issuing a credit card. Any financial institution that didn't verify the income of its credit card holder wouldn't stay in business for long. Does anyone have other reasons for opposing the bill I can mention in my letter?

[yovimi]

I have another one: Would not this be harmful to credit companies and banking industry, by taking clients away from them? Credit card companies already have plenty of measures to be able to choose on their own who's capable of a good credit card. In fact, its very hard to get a credit card or mortage without having credit history at all. (some people have to get a store credit card and such, until they can get a credit history to use)

Why not contact banks and credit card companies in NJ?

[Gwen]

It couldn't be all that good for NJ's economy as a whole. A lot of business transactions are that much easier to make with a credit card.
Good luck fighting this! These legislators seem to think that citizenship should only be allowed at death (except of course for them) and that everyone should be placed into cryogenic chambers for life, or at least until the age of somewhere around thirty. (Idiots.)
-Gwen.