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Financial Conversations with Fitz #56 -Credit Cards Under 21 - 03/08/2010

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Well can we figure that the snow has settled down for a while.   Lots of shrinkage this weekend.  Can even see some intersections.   Hey the Algona girls did a good job on all state teams.   Now have to cheer for Garrigan for the week.  Markets did a small slide last week.   Could open mixed with the overnight trading.   Will watch for Wednesday ‘stock’ reports.   Probably not much change.    Did you get time to check your basements?   I noticed a small trickle from a regular spot.   Eaves are all working….So that should help.

Last week we visited about some changes in the credit card rules and regulations.   Most of them had happened last fall but the deadlines are just coming through now.   I had the most questions on the ‘under 21’ comments.   So will go over them a little bit more in detail today.   The main point they attempted to clarify was all the applications that the credit card companies send out to college students that sign up with not much intent in following thru with regular payments.   Look at the card, shrug their shoulders and go use it.   Then ignore the bills when they get them.   Add lots of fees and then sue someone for not making payments.   Lots of people lose on this method.   Now someone under 21 must submit their application with a signature of a person 21 or older that is responsible for the payments.   What about the person under 21 that is responsible and making a living independently?    They can submit application with proof of payment and get their credit card after underwriting.    Another item they changed is the creditors cannot change the limits before the card carrier reaches 21 without the signature of the joint holder.   There are college students that are making money that are under 21 that are somewhat independent, so that person will just have to apply and see if they can get one on their own.   There would need to be lots of trust and maturity for a parent to sign a credit card for a dependent that is off to college or work in another state…….I would not want to have had my dad have to sign a credit card application when I was 20 years old.   You would get that “you got to be kidding me” that my dad was so gracious to offer.   If you have any questions on our TSB card give us a call on getting a card when the applicant is under 21 and not working full time.

Call or stop in to see us if you have any questions in any of our three offices. 

Remember that you should deal with people in community banks and organizations.  When you work with them, you know that you will also see them sitting with you at ball games, church or community events.  So, if in doubt give us a call.