In reality, not all credit cards are bad....if you are responsible. Not all credit card companies are bad....if they are responsible. With Congress' recent credit card legislation, credit card companies have been given an opportunity to be more responsible. Remember the 'Free T-Shirt" offers for those who complete a credit card application? For years, credit card companies set up shop at sports arenas, spring break locations and wait for it.....college campuses. Many college students haphazardly filled out credit card application for cheap gifts or pizza while disregarding any ability to repay the debt. The gifts were short lived because these students were soon inundated with credit cards that had excessive fees and extremely high interest rates.
In reality, not all credit cards are bad....if you are responsible. Not all credit card companies are bad....if they are responsible. With Congress' recent credit card legislation, credit card companies have been given an opportunity to be more responsible. Remember the 'Free T-Shirt" offers for those who complete a credit card application? For years, credit card companies set up shop at sports arenas, spring break locations and wait for it.....college campuses. Many college students haphazardly filled out credit card application for cheap gifts or pizza while disregarding any ability to repay the debt. The gifts were short lived because these students were soon inundated with credit cards that had excessive fees and extremely high interest rates.
In my previous post, I talked about Congress' attempt to protect you through new credit card legislation. I also talked about the 5 top things to remember so here's #2:
2. Limiting Credit Cards to People Younger than 21 yrs old
Credit card companies can no longer issue credit cards to anyone under 21 unless the applicant has a co-signer or can independently show the ability to repay the debt.
I got my first credit card as a 19 year old sophomore and used the credit card for spring break expenses and car repairs. It took almost 2 years of minimum payments to pay off the debt. We aren't taught the "ins and outs" of credit cards and for many years that suited the credit card companies just fine. With the new administration, "times are a changing" and credit card companies or banks are required to exercise more responsibility. Responsibility will be a common theme in my posts because it's important to have corporate, civil & personal responsibility. The new credit card law can only inject responsibility to credit card companies and banks. It's your responsibility to exercise good judgment in borrowing and repaying your credit card debt. Hopefully, the law has made that a lot easier for you.
So when someone asks you "What's in your wallet?", hopefully you can reply with "Cash, debit card, and not your high interest credit card".
If you're tired of the free t-shirts, free pizza or gifts given by companies to entice new customers, then you'll like the next post...." #3. College Bank Curtailment".
As always, please email me if you have any questions or comments.
Ebong Eka, CPA
info@ebongeka.com
In my previous post, I talked about Congress' attempt to protect you through new credit card legislation. I also talked about the 5 top things to remember so here's #2:
2. Limiting Credit Cards to People Younger than 21 yrs old
Credit card companies can no longer issue credit cards to anyone under 21 unless the applicant has a co-signer or can independently show the ability to repay the debt.
I got my first credit card as a 19 year old sophomore and used the credit card for spring break expenses and car repairs. It took almost 2 years of minimum payments to pay off the debt. We aren't taught the "ins and outs" of credit cards and for many years that suited the credit card companies just fine. With the new administration, "times are a changing" and credit card companies or banks are required to exercise more responsibility. Responsibility will be a common theme in my posts because it's important to have corporate, civil & personal responsibility. The new credit card law can only inject responsibility to credit card companies and banks. It's your responsibility to exercise good judgment in borrowing and repaying your credit card debt. Hopefully, the law has made that a lot easier for you.
So when someone asks you "What's in your wallet?", hopefully you can reply with "Cash, debit card, and not your high interest credit card".
If you're tired of the free t-shirts, free pizza or gifts given by companies to entice new customers, then you'll like the next post...." #3. College Bank Curtailment".
As always, please email me if you have any questions or comments.
Ebong Eka, CPA
info@ebongeka.com
