SEXIEST PERSONS ALIVE

Sunday, August 22, 2010

what have you done for me lately?

Here is one example of how the Democrats prioritize we the people: As of today, thanks to the Credit Card Act, gift cards must be good for a minimum of five years.


And thanks to President Obama for signing it. He promised change and in my book this is change worthy of a toast.

You can read more about how the law effects credit cards and fees, here and here.

I don't think I've ever had a gift certificate expire on me. But I have won several restaurant gift certificates at my kids' school silent auction fundraisers. And several times I have gone to use one of these cards only to find that it expired after 3 months. I assumed all cards were good for one year, so I didn't look.

Another benefit of the Credit Card Act that I will soon be grateful for: no credit cards issued to kids under the age of 21 years (unless they have a co-signer or can show proof of independent income). I've seen too many bedraggled parents in my office who sent their kids off to college only to come home with many thousands of dollars worth of credit card debt.

When I was in college, I couldn't get a major card even with a steady part-time job and despite having established a record of paying lesser cards in full every month. I now understand. Credit should be earned, not handed out to every college freshman willing to sign up.

17 comments:

The real L.A. love story. said...

just stumbled upon your site after a sunday morning of blog stalking and i must say, i love your sense of humor! can't wait to spend more time reading your old posts after i get back from the beach!

Jenn @ Juggling Life said...

Our children are so terrified of credit card debt by hearing all our stories of college kids making bad choices, that we've got that covered.

But I agree--these are good changes.

Another Day of Crazy said...

Lol, thanks for the head's up! Good to know I don't immediately *have* to use up all those annoying gift cards that would otherwise just gather dust. I mean who needs (what are essentially) freebies? :)

Jason, as himself said...

So true. I was able to get a ridiculous amount of credit cards in college. It was not a good thing in the long run!

I'm glad to see the change in gift card rules!

Just A Mom (Call me JAM for short) said...

I wish they had the credit card act when my daughter was in college...

A Daft Scots Lass said...

Thats how the catch the youngsters and they will pay for it for the rest of their lives.

Mental P Mama said...

Amen!

bernthis said...

amen sister. however, they are now refusing to lower their fees b/c you know, they are all broke and gotta get the cash from somewhere right?

Kathleen Scott said...

About time. Why should big business get to steal the $?

Credit is scary, best left for adults...except that might be 50 for some of us...

steph gas said...

my brother got into credit card issues while in college - it was way too easy to get a few hundred dollars limit with no verifiable income.

however, i can see the other end of it too - i know a 19 year old who is responsible and has a job, and she wants a credit card to start establishing a credit history now. that way, in a year or so when she's ready to move out she'll be able to rent her own place. without a decent credit history, you won't be able to rent a legal apartment anywhere.

yogurt said...

steph gas - fortunately, someone with a job who can show proof of independent income, can still qualify for credit cards.

slow panic said...

I'm so tired of people dogging Obama -- it's nice to see someone acknowledge the work he is doing.

yogurt said...

Such as doing his part to save this country from certain financial ruin?

Jenn @ Youknow...that Blog? said...

It's about time they straightened up in this regard! I think the gift card thing was done up here (Canada) a while back as I recall, and it was a welcome change. However, I believe they still dole out credit cards to kids, and it's such a bad idea. I was 17 when I got my first VISA, and nowhere near mature enough to handle it responsibly. BIG mistake.

Ash said...

I'm very happy about the under 21 law, but shudder to think what would have happened to me back in the day. I signed up for my first credit card because I needed a private way to see a doctor and buy birth control pills.

Too chicken to tell the parents :-)

Of course, my limit was $300, and no way were they willing to ever go higher than that.

I know today things are different on so many levels. We're already working on credit education for the boys. My husband is in finance - "credit" is actually quite a four-letter around here.

Coffeypot said...

Thanks for stopping by and joining the group. So Obama finally did something right. Even Hitler did some good things for Germany, too. But in the long run, both are calamitous to their country.

Rachel Cotterill said...

I hate expiry dates on gift cards. I particularly hate that they print them in very small text that I can't read, or sometimes, not at all. I'm wanting a UK version of this law! :)