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I turned 18 about two years ago. Things might be different now because of the credit CARD act of 2009 which makes it slightly harder to take advantage of younge

I turned 18 about two years ago. Things might be different now because of the credit CARD act of 2009 which makes it slightly harder to take advantage of younger people (giving a $1500 card to people who have never had credit before and don't know how important it is to pay off the balance in full seems particularly evil) https://en.wikipedia.org/wiki/Credit_CARD_Act_of_2009 https://en.wikipedia.org/wiki/Credit_CARD_Act_of_2009 >Consumers under the age of 21 must prove that they have an independent income or get a co-signer before applying for a credit card. The Act also prevents credit card companies from ... wooing students with T-shirts, free pizza and other free gifts at university-sponsored events

aidenn0 9y ago
Well at least the interest rate was only around 30% </s>. [edit] The end of the story for me: The credit card I got from that was amazingly bad. I had a bill put in the wrong mailbox in my dorm, so didn't get it until 3 days before it was due. I called up customer service: Me: I can mail this today, but it is unlikely to make it there by the due date, I've always paid my bills on time, can I get a 1 week extension CS: We can do an ACH for $20 or you will pay a late fee if the check you mail is even a day late. Me: Seriously? CS: Yes Me: Okay, do that and cancel my account. CS: Okay. It's like they didn't even want me as a customer if I was going to pay my bills every week. Not a single attempt to retain me when I canceled my account. At this point, I had a Discover card, the CS reps for which were very kind, and my bank had just gotten my debit card on the Mastercard network (previously it was only an ATM card), so I had no absolute need for their card. Had this happened a few months earlier I might not have been willing to cancel as so many places don't take Discover.
- jldugger 9y ago
  > It's like they didn't even want me as a customer if I was going to pay my bills every week. I semi-suspect you know this, but if you pay in full every month, they don't get to bundle your debt up and sell it off as a security. Interchange fees are competitive enough that it's probably close to break even (and getting more so every year), but the securities are comparatively pretty sweet for the issuers.
  - stevekemp 9y ago
    While you're probably correct its worth remembering that credit-card companies get their money from both sides: * They earn money via the interest people way if they don't settle their bills in-full, and on-time. * But they also take money for handling transactions at terminals, etc.
QML 9y ago
While I did not get woo’ed, sadly enough, to get an unsecured credit card with Bank of America, all I needed to do was enter my personal information and some notion of income (without verification). In less than a minute, BoA’s automated credit card application approved me and mailed out a $1000 limit card.
astura 9y ago
>Things might be different now because of the credit CARD act of 2009 which makes it slightly harder to take advantage of younger people No "might" or "slightly" about it. It's significantly different now. When I was 18 you only needed a faint pulse to get 10s of thousands of dollars in credit. People would hand out credit applications in dorm rooms, at events, in front of classrooms, just anywhere and everywhere you could think of. It was a different time.

aidenn0 9y ago

Well at least the interest rate was only around 30% </s>. [edit] The end of the story for me: The credit card I got from that was amazingly bad. I had a bill put in the wrong mailbox in my dorm, so didn't get it until 3 days before it was due. I called up customer service: Me: I can mail this today, but it is unlikely to make it there by the due date, I've always paid my bills on time, can I get a 1 week extension CS: We can do an ACH for $20 or you will pay a late fee if the check you mail is even a day late. Me: Seriously? CS: Yes Me: Okay, do that and cancel my account. CS: Okay. It's like they didn't even want me as a customer if I was going to pay my bills every week. Not a single attempt to retain me when I canceled my account. At this point, I had a Discover card, the CS reps for which were very kind, and my bank had just gotten my debit card on the Mastercard network (previously it was only an ATM card), so I had no absolute need for their card. Had this happened a few months earlier I might not have been willing to cancel as so many places don't take Discover.

jldugger 9y ago
> It's like they didn't even want me as a customer if I was going to pay my bills every week. I semi-suspect you know this, but if you pay in full every month, they don't get to bundle your debt up and sell it off as a security. Interchange fees are competitive enough that it's probably close to break even (and getting more so every year), but the securities are comparatively pretty sweet for the issuers.
- stevekemp 9y ago
  While you're probably correct its worth remembering that credit-card companies get their money from both sides: * They earn money via the interest people way if they don't settle their bills in-full, and on-time. * But they also take money for handling transactions at terminals, etc.

QML 9y ago

While I did not get woo’ed, sadly enough, to get an unsecured credit card with Bank of America, all I needed to do was enter my personal information and some notion of income (without verification). In less than a minute, BoA’s automated credit card application approved me and mailed out a $1000 limit card.

astura 9y ago

>Things might be different now because of the credit CARD act of 2009 which makes it slightly harder to take advantage of younger people No "might" or "slightly" about it. It's significantly different now. When I was 18 you only needed a faint pulse to get 10s of thousands of dollars in credit. People would hand out credit applications in dorm rooms, at events, in front of classrooms, just anywhere and everywhere you could think of. It was a different time.