At Moneygeek, Professor Gregory Germain provides tips and answers questions about getting a first credit card and securing a personal loan from an online-only bank.
In the credit card article, he notes that “getting a credit card as a young person can be especially difficult. The Federal “CARD” Act of 2009 prohibits anyone under the age of 21 from obtaining a credit card without either a responsible co-signor (normally a parent) who guarantees payment or the “submission of an application, indicating independent means of repaying any obligation arising from the proposed extension of credit.” See CARD Act amendments to 15 U.S.C. § 1637(8). So, if you’re under 21 without a full-time job, you will probably need a co-signor parent to obtain a credit card.”
His advice for assessing the credibility of online-only lenders includes “you need to be sure you are giving your personal information to a genuine lender and not a scam artist when you are applying for a loan. There are lots of scam artists out there trying to get your personal information so that they can steal money from your bank accounts or your identity. So, you need to verify that the person you are dealing with is really the lender before giving them any of your personal information.”