College students are gearing up to head back to school, but this year fewer are probably using credit cards to buy supplies and clothes.
Not long ago, credit card issuers would offer free food and other enticements to students simply for filling out an application, but lenders are now prohibited from luring students with freebies like fresh pizza, candy, T-shirts, water bottles, Frisbees and backpacks.
Free food isn’t the only thing college students are having a harder time getting: Their access to credit cards is more limited.
The Credit Card Act of 2009 dictates that no one under 21 can get a credit card without either a co-signer or proof that they have enough income to cover regular payments. For many students, a credit card may no longer be an option.
But students do have alternatives, such as getting a secured credit card or becoming an authorized user on their parents’ card to pay for daily needs. Credit counselors say building a credit history and staying out of debt should be top priorities.
