I must have been looking at an older version of the act when I wrote this because the clause about the financial documentation proving an independent means of repaying the obligation wasn’t in there.

I’m glad to know it is. It makes this whole part of the act make a lot more sense.

Under new Section 127(c)(8)(A) of TILA, as adopted by Section 301 of the Credit Card Act, no credit card may be issued to, or open-end consumer credit plan established by, or on behalf of a consumer, who has not attained the age of 21 unless the consumer has submitted a written application to the card issuer that meets certain requirements. 15 U.S.C. 1637(c)(8)(A). New TILA Section 127(c)(8)(B) further provides that an application to open a credit card account by a consumer who has not attained the age of 21 as of the date of submission of the application shall require either: (1) the signature of a cosigner who has attained the age of 21 having a means to repay debts incurred by the consumer in connection with the
account, indicating joint liability for debts incurred by the consumer in connection with the account before the consumer has attained the age of 21; or (2) the submission by the consumer of financial information, including through an application, indicating an independent means of repaying any obligation arising from the proposed extension of credit in connection with the account. 15 U.S.C. 1637(c)(8)(B).

What all the fancy legelese in (2) means is that if that responsible job holding, apartment renting, getting married 19 year old in your example can provide proof of all those claims, they are just as entitled to a card as anyone else.

I’m all for education, but I simply have to agree that age is not the best indicator of responsibility. I would be okay with a credit “license” that let you apply for credit after taking an exam, but I’m not sure how much good it would do. It’s like how I studied Unix in a college class just to pass the exam… and then promptly forgot everything!

Protect young borrowers with limits or education, not simply by denying credit based on age alone.

(As for the education component, I think that state departments of education need to start mandating personal finance in high schools much like they do phys ed.)

You need a license to drive, marry and in some places own a dog! Why not a license to apply for credit? I realize it would not be as easy as it sounds, but at least this way there can be some formal standardized education before putting a credit card in people’s hands.

I know it won’t solve all the problems, just like people with driver’s licenses still disobey road rules and cause accidents. However, the majority of people on the road know the rules and abide by them.

Maybe if there was some formal training on financial literacy and responsibility before being allowed to even apply for credit, some people wouldn’t get into financial trouble.

My husband didn’t get a card right when he started college and tried to get one when he turned 21. He got rejected everywhere. He was able to get a card with a $500 limit from the bank he had a savings account in.

I know it’s hard to assess responsibility without a history, but limit the damage by limiting the credit amount and not a person’s ability to get a card based on age.