It's not surprising to observe that just about every young adult between the ages of 18- 25 are in debt. From school loans, credit card bills, car loans, and just about everything else, it is really weighing them down at such a young age. Banks are abusing the uneducated, young adults through debt.
Luckily, on May 22, 2010 our President Barack Obama signed into law the Credit Card Accountability, Responsibility and Disclosure Act of 2009. The bill limits credit card issuers such as banks from raising interest rates without warning, punishing loyal customers who pay on time. And the most important in this law, there's a provision that specifically refers to young adults: Under the new law, no one under age 21 can obtain a credit card unless someone over the age of 21 such as a parent is willing to co-sign or unless the young adult can provide proof of sufficient income to cover any debt obligations.
This is definitely a win for consumers especially in the case of young adults. No longer will young adults be targeted by banks, as they been profiting off the uneducated, careless young adults through excessive fees and high interest rates. This will encourage credit card holders to be more responsible and discourage banks for unethical practices. To avoid being debt victim please take the time to learn about debt.
The most significant place for you to find information about the debt in question is when you are applying. A lender is legally obligated to provide these for you before you fill out the application for the line of credit.
Here is a view what you can expect when you have poor credit scores.
1. Lower credit limits: Most lenders will minimize losses by doing this. Younger adults will see reduced credit lines as the economy worsens and the new law is in place.
2. Higher interest rates: depending upon just how low your credit score is, the credit card is likely to have a higher interest rate. Consequently, you'll be expected pay more to borrow funds from the lender, though just note that rates are different from one company to the next.
3. Higher fees: credit card companies will charge higher fees to those who have bad credit. This may include annual fees and one time processing fees.