by Joseph Kenny | 08/10/09

It is understand that most nineteen-year olds do not have a credit history. As such, they may be limited on what they can do when they make the transition to like on their own or they leave home for college. Most may have to rely on their parents or other parties to do things like activate their cell phone or turn on their utilities. This is where credit cards have traditionally come in handy.

This option may be off the table in a few short months as new credit card laws take affect that would make it much more difficult for teenagers or students to get credit cards because of their ages.

The reason for this change has much to do with the number of students who have gotten into serious financial trouble because they abused credit card use. As a result, they found themselves in major debt.

One of the major areas of reform has to do with the ways that credit cards are advertised to kids and on the college campuses. Card solicitation is a big business and nearly all types of credit are being marketed.

Beginning in February 2010, the only way for people under 21 to obtain credit cards will be to provide proof of adequate income and be willing to take a financial literacy course. Parents or guardians may agree to co-sign on credit card loan applications.

In the last case, it is definitely a risk for parents to take on if their child makes late payments or fails to pay at all. There is a genuine chance that the parent's credit will be ruined.

Students and teens obviously find the need for credit cards a serious one in a culture that often requires them for transactions.

There are definitely questions about the fairness of such measures since they penalize those young people who are responsible for the actions of those who have gotten into financial trouble. There are no easy answers to this question and there are sure to be more once the legislation takes affect on February 22.