Teens scramble to get credit cards now before tighter restrictions take effect

Nineteen year old Nicole Anderson has no credit history.

She says, “I can’t turn my utilities on.  I can’t turn my cellphone on.“

A credit card would help, but in just a matter of months, it will be harder for her to get one because of her age.

Nicole’s father, financial expert and lender Rodney Anderson says, “A lot of kids get in a lot of trouble.“

“Credit cards got out of control, especially when it came to colleges.  Kids were being solicited for every aspect of credit out there,“ says Anderson.

Nicole says, “Oh look at the free t-shirt you get for signing up for a credit card, or look at the coozie you get for signing up for a credit card.“

“I call it the ten thousand dollar free t-shirt that a kid got at college, says Rodney.“

So 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,“ warns Anderson.

Nicole worries about not having a credit card in a society that often demands them.

“So what if something happens?  I can’t do it by myself,“ wonders Nicole.

She will soon have more independence.

She says, “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.“

It’s a measure that may keep some young people out of financial trouble, but leaves others wondering why they have to pay the price.

Nicole says, “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.“

Those new credit card restrictions kick in on February 22nd of next year.