VIDEO: Teens & Credit Cards

First of all, let me say I’m in my mid-20s and I’ve never had a commercial credit card.  I have one, but it’s only there for a medical or dental reason.  In fact, it can only BE used for those purposes.  As a bargain-hunter, my PERSONAL belief is that if I don’t have the cash (or money in the checking account) for something I see on a shopping trip, I probably don’t need it as much as I WANT it.  For bigger purchases like major electronics, sometimes that’s not the case; but right now, all of those are working fine for me!  Therefore, I’m not going to get a general credit card until I have no other choice.

On that note, I found this story through fellow NBC station, KXAS in Dallas-Forth Worth, and I thought I’d share it with you guys.

Teens & Credit Cards
It’s about to get a lot harder for people under the age of 21 to get a credit card.
A recent study shows college students carried an average balance of more than $3,000 last year.
Now Congress has passed tighter restrictions that go into effect in February.
But now some teenagers are scrambling to put plastic in their wallets now.
Nicole Anderson, 19, has no credit history.  Right now, she can’t get the utilities or her cell phone turned on because of that.
A credit card would help, but in a matter of months, it will be harder for her to get one because of her age.
Financial expert Rodney Anderson says that’s because a lot of children get into a lot of trouble.  He’s also Nicole’s father, and money lender.
“Credit cards got out of control, especially when it came to colleges,“ Anderson said.  “Kids were being solicited for every aspect of credit out there.“
Nicole agrees that plenty of students her age see they get a free t-shirt or coozie just for signing up for one.  “I call it the $10,000 free t-shirt that a kid got at college,“ her father said.
Starting in February, the only way for anyone under 21 to get a credit card will be to prove they have adequate income, complete a certified financial literacy course, or have an adult, such as a parent, co-sign.
“The problem with that is mom and dad’s at risk because if the child makes the payments late, then mom and dad’s credit is ruined,“ Rodney Anderson said.
Nicole worries about not having a credit card in a society that often demands them.  “So what if something happens?“ she asked.  “I can’t do it by myself.“
However, Nicole will soon have more independence.  “Actually, I’m going to get a secured credit card this week so I can build the credit and have one before the law changes,“ she said.
It’s a measure that may keep some people out of financial trouble but leaves others wondering why they have to pay the price.
“I’m very responsible with my money, and I just feel that I should be able to have a credit card before I turn 21,“ Nicole said.
The new credit card restrictions kick in on February 22, 2010.

So guys, what do you think?  Your concerns?  Be sure to follow me on Twitter, and me your topics!