Finding Credit When You’re Under 21

Finding Credit When You’re Under 21
Finding Credit When You’re Under 21
The Credit Card Act, passed in 2009, has made it very hard for students under 21 to get a credit card. Students seeking credit will have to turn to other businesses that offer credit and are not similarly restricted to get quick hassle free loans either via short-term lending or pawnshops. Without access to cash, students without a credit card have to manage their money to the penny to make sure they don’t fall short. Otherwise, they’ll end up having to call mom and dad to get them to send money quickly.

Working Students

Some exceptions apply to the credit card rules. Working students, under 21, who show sufficient income to make payments on a credit card can still qualify without a parent’s signature. Otherwise, they will need a cosigner for the loan, whether it is a parent, a spouse or a legal guardian. The rules were set up to keep students from getting into trouble with credit cards.

Other Quick Loans

The credit cards were deemed too convenient to get into debt. However, other forms of lending will have to take their place when students need cash. Schools do offer short-term loans to working students who can repay them, but not to students who don’t have a job. The same is true of payday lending. That leaves businesses that either buy gold jewelry or pawnshops that take other assets to get quick cash. Finding cash for a non-working student definitely has gotten harder.

The Cash Round Robin

Today’s millenials that are in school have resorted to informal social lending. They may decide to pick up the tab on one occasion when they are flush with cash, knowing the next time they might be the one needing to borrow money. The heightened cash consciousness of students also make it clear that when financial systems fail, all you got left is your friends.

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