<p>I have a quick question about the new restrictions on issuing credit cards to people under 21: How does it affect already-existing accounts? I will be 21 in one year and one month, and I already have two credit cards from U.S. Bank, one with a limit of $600 and the other with a limit of $7,000. Yes, I understand that a credit card is just a loan and that a $7,000 limit doesn’t mean anything. I currently owe $45 (forty-five dollars) between both cards and have never owed more than $150. My question is, how will this new law affect students like me who already have established credit lines? Will we be “grandfathered”, so to speak, when the law takes effect, or will we be subject to the same proof of income, cosigner, limit restrictions, etc.?</p>
<p>I read the bill at some point. I’m almost positive you’ll be grandfathered in.</p>
<p>^ So do you mean I’ll be exempt (that’s what I meant by grandfathered), or do you mean I’ll be subject to the restrictions?</p>
<p>Grandfathered in means that you aren’t affected by a certain law you were doing whatever is against the law now before it was against the law.</p>
<p>Correct me if I’m wrong, but doesn’t the new law restrict those under 21 from applying for credit cards. If you are under 21 and already have credit cards, you will not be affected.</p>
<p>I think that even some people under 21 can get credit cards, but with severe limitations, possibly requiring a co-sign.</p>
<p>You will still be able to apply for credit cards, you just need to have a co-signor or have proof of “sufficient” income.</p>
<p>What is this bill about?</p>
<p>Credit industry “reform”</p>
<p>A question about what constitutes “sufficient income?”</p>
<p>I was working back in high school, have a little over 9K saved up (though a little over 6K of that will be going bye-bye soon). I currently don’t have a job and probably won’t get one soon. I never got a credit card (never really bought anything, the couple of things I bought online I used my parents credit card and just paid them back, never used a credit card in person) so would I be unable to get one now, or do my previous funds/proof of income allow me to get one? If so (or even if not) would I really need one?</p>
<p>I’m 18 if that matters.</p>
<p>These restrictions don’t become law until February 2010 so you have time. As to what constitutes “sufficient income” is anyone’s guess–though larger credit lines will obviously be issued to those with higher incomes.</p>
<p>“Credit industry “reform””</p>
<p>Thanks that tells me everything. =/</p>