A review of credit cards
A bill was introduced that requires companies to provide educational programs for students prior to any student credit cards being issued. The programs must provide an understanding of how debt affects credit, how interest on balances is calculated, the different interest rate terms and the consequences of not paying balances in full each month. The bill also limits sales gimmicks, so students are not wooed into applying for credit cards just to get the free pizza or shirt. Lawmakers believe restrictions in the bill will help protect students from making poor financial decisions that could have long term consequences. Credit cards can be a useful financial tool, if used appropriately, and legislators want to give students a chance to make sound decisions about those cards.