Students applying for credit could soon hear a familiar motto: 21 means 21.
Beginning in February 2010, a federal law will prohibit those under 21 from acquiring a credit card without a co-signer or proof of sufficient income.
The changes stem from the 2009 Credit CARD Act, a measure that will tie lenders to responsible practices and full disclosure.
It could ultimately end up tying the hands of financially strapped students.
According to The Wall Street Journal, credit card issuers have already begun to increase interest rates and annual fees in anticipation of the changes.
In addition, credit will become more expensive as laws force lenders to be more selective in choosing clientele.
"You know, it's hard right now," said Tarin Acaron, a marketing officer for Campus USA Credit Union in Gainesville.
"A lot of people are using their credit cards to get by and pay their bills because they just lost a job," Acaron said.
In the tumultuous economic environment, Campus USA offers a student-friendly alternative that considers a range of factors apart from credit scores and employment income.
"I don't know if people understand how important [credit] is," she said.
"It takes just a little bit to hurt it and so much to fix it."
According to the Counsel of Economic Education, mounting credit card debt trumps all other reasons for why students drop out of college.
Some students rely on credit cards to purchase expensive necessities.
UF falls in this swipe-happy camp.
Lynne Vaughan, director of bookstores at UF, said students without financial aid primarily use credit to purchase textbooks.
While some see burden on the horizon, others expect gain.
Companies like nFinanSe, a publicly traded financial services provider based in Tampa, specialize in reloadable prepaid cards.
The company looks to fill the credit card void with a product that doesn't include overdraft fees or charge interest.
The card is free to college students who apply online.
"In this day and age, there is a plastic gap," said Clare Morgan, the vice president of marketing for nFinanSe. "You need plastic to shop online, rent movies, place an order."
"Who wants to walk around with a wad of cash?"
Unlike credit or debit, an nFinanSe prepaid card isn't connected to a bank account and charges a monthly usage fee of $2.95.
It teams with the Discover Card network, which means users can add funds at more than 72,000 locations nationwide.
Morgan said her company's younger target market is more savvy with money now.
She said she isn't sure whether Americans as a whole will continue to over-consume.
"I don't have a crystal ball," she said. "I wish I did. I would like to think we have all learned our lesson."
The law will force credit providers to issue 45-day advanced notices of rate changes, limit interest hikes on existing balances and prevent solicitation to those under 21.
Congress suggests that universities require marketers to alert the school when conducting on-campus registration.
The law will also require companies offering free credit reports to say in ads that consumers can get to one report from each federal credit bureau per year.
