Credit Cards & High School Students- Samantha Wilson
The Federal law doesn’t provide any restrictions about issuing credit cards to minors. In fact, credit card companies consider teen-agers as a very profitable market. Most credit card companies often require a co-signer when a minor applies for a credit card. When a teen-ager reaches the age of 18, he has the right to sign-up for his first credit card on his name even without a cosigner.


Are Student Credit Cards an Advantage?  Some parents feel that providing their kids with credit cards while they are still in high school help them learn about money early in life. With proper guidance and support, obtaining a student credit card can help young people learn about how to handle their finances properly.


A credit card for students is a great way in establishing a credit history in preparation for their future. Some credit card companies refuse to grant credit card approval for those without a credit history. But with the help of a parent as a co-signer, it will be much easier to get a credit card.


Or a Disadvantage?: On the other hand, a young person with a student credit card can also get into trouble. The convenience that a student credit card can bring may lead to uncontrolled spending. With just one swipe of the card, they can purchase an item easily at any time. Eating out in restaurants with friends is also just as convenient. They can easily do so without bringing with them any cash.

The New Rules Of College Credit: By Anna Maria Andriotis
A law that took effect cracks down on high-interest credit cards and aggressive marketing tactics used by card issuers to sign up college students. But it won’t stop banks from trying to win students as customers. 
84% of undergraduates have at least one credit card 
82% of college students carry balances
Average balances stand at a record $3,173 
Seniors graduate with more than $4,100 in credit-card debt on average


College students generate profits for credit-card companies by not paying their balances in full. In the long term, they tend to hold on to their first credit card for life, she says. So banks are trying varied marketing strategies to get their cards into students’ wallets. Here’s what college students can expect under the new law:


FREEBIES: It’s a common sight on a college campus: a credit-card table, where bank representatives take applications from students and offer them free gifts.  The Credit Card Accountability, Responsibility and Disclosure Act prohibits credit-card issuers from giving out free stuff to students in exchange for filling out a credit-card application on college campuses, at college-sponsored events, or within 1,000 feet of them. But the new law leaves a huge loophole: Card issuers can still set up tables and give out freebies, as long as they don’t require students to sign up for a credit card on the spot. That means that credit-card companies can give away gifts and promote their brands on campus, says Ms. Susswein.


PARENTS: Some credit-card issuers are aiming their pitches at students’ parents. Discover is mailing credit-card marketing materials directly to parents’ homes, says spokesman Matthew Towson. “We currently acquire most student accounts through direct mail and the Internet,” he says.


FINANCIAL LITERACY: The CARD Act recommends colleges provide education about credit cards & debt during student orientation.” 


INCOME VERIFICATION AND COSIGNERS: To get approved for a credit card, students under 21 will need to show proof that they can repay their debt, or they’ll need a cosigner (who is at least age 21). A cosigner is someone who agrees to accept responsibility for debts that the borrower can’t repay. If a student goes at it alone, he would have to provide the credit-card issuer with information about his wages (like pay stubs), or other income, in order to qualify for a credit card.  Full-time students under age 21 will need to show verifiable income that’s above $2,000 a year and must have “an acceptable debt-to-income ratio” to qualify for the Discover Student card. When students use a cosigner who isn’t a full-time student, the cosigner will need to earn at least $15,000 a year to be considered for a Discover card.