As a result of the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, which amended the Truth in Lending Act, credit card applicants under age 21 must have an adult cosigner or show proof of income in order to be approved for a credit card. This requirement is effective February 22, 2010. Even with an income, the amount of a young person's credit line, without a cosigner, is limited to the greater of 20% of the student's annual gross income or $500.
We would like your feedback on this Personal Finance Frequently Asked Question.
