Credit card reform has passed in the Senate and will return to the House for a vote.

One interesting area that the separate bills provide for are credit cards for minors. The House bill states that (unemancipated) minors can’t have more than one card, and limits college students to one card. The Senate bill eliminates credit cards for anyone younger than 21 without proof of income or adult co-signer.

Universal default is also eliminated so if you make a late payment your rate isn’t automatically increased on you other credit cards.

Though the other parts of either the House’s or Senate’s bill would be beneficial to cardholders, the provision for minors and college age students is important. Having one card will still allow a student to do some damage but not so much as having several cards and accruing thousands of dollars in non-tuition debt before graduating from college.

Debt is a big issue for many people. Starting your life with excessive credit card debt doesn’t help a college student make his/her way in the world. This legislation if passed by the House will make a difference when students arrive on campus and have to walk through a gauntlet of credit card companies’ tables offering free gifts and generous credit limits for those who have no employment. Proof of income or a co-signer would make it more difficult to completely ruin your credit. [A provision for a reasonable credit limit, depending on the student’s income would have been a great addition as well.]