CARD Act helps college students improve credit

The Credit Card Accountability, Responsibility and Disclosure Act introduced major regulations to the credit card industry, many of which provide added consumer protections to individuals younger than 21.

The CARD Act requires consumers under 21 to show proof of financial independence or have an adult co-sign on an agreement in order to legally obtain a credit card. The idea behind the legislation was to protect these individuals from taking on too much debt at a young age.

Cody Swain, a staff assistant at the University of Central Florida's business incubator, said the rules have helped college students with their finances.

"As far as frivolous credit-card spending, I would say it has been reduced a lot now," he told the Orlando Sentinel. "It's still there to some extent, but there's definitely a greater sense of caution now than in the past."

While the law has been beneficial to a number of current students, there are still many recent graduates who fell into credit card debt before the legislation kicked in. These individuals may have improved their financial management and paid down a lot of their debt, but still have a poor credit score, resulting from one or two missed payments.

By speaking with a credit repair company, they may be able to remove any unfair items that continue to hamper their scores. A credit repair attorney may be able to work with creditors and the credit bureaus to remove a blemish, allowing consumers to return to a clean credit standing.