Though federal law prevents certain types of credit card marketing to students on college campuses, many lenders are still finding ways to get their offers out to young adults.
The provisions of the Credit Card Accountability, Responsibility and Disclosure Act state that consumers under the age of 21 either have an adult co-signer on a credit card or otherwise prove they can afford the account on their own, according to a report from the Columbia Free Times. However, a loophole in the law allows young adults to count future earnings as income they already have.
"That's very problematic that we’re allowing debt to count as a means for people to become more indebted," University of South Carolina law professor Eboni Nelson told the newspaper.
Misusing credit cards at a young age can have numerous negative effects on consumers' borrowing histories, and consumers of all ages should take the time to check their credit reports as well. This can help to identify any errant or unfair entries that can take a chunk out of their credit score.