idiggory, King of Bards wrote:
Yes, but the other side of that is that you don't realistically get anything tangible in return. If you put $700 down on an apartment, you're getting a place to live. If you put $1000 down on a car, you're getting a way to move from point A to point B.
Sure you do. You get a card that you can use to make convenient purchases. Which is the kinda the point of having one, right? So you don't have to carry cash around all the time? Unless the utility you want is to be able to buy stuff you can't afford, which again puts us right back into the whole predatory lending thing. They are directly acting to reduce your ability to borrow more money than you can realistically pay back. How did you think that was going to happen?
If the same company would be willing to give me a low-limit card with the same lack of credit, but is blocked from doing so from blanket legislation, I think that's a problem for everyone. I agree that young adults shouldn't be unprotected at all, but I do think that an all-or-nothing approach isn't the way to handle this.
/shrug. This is the solution they came up with. How do you propose they protect young adults from their proclivities towards abusing credit cards without heavily placing the kinds of restrictions you're complaining about. It's like you want "those other irresponsible people" to be restricted, but not you. But you're financially in the exact same position. And thus, you're treated just the same as them until you can prove you can be responsible with credit.
I'm not seeing how you think this should work.
And if the lender doesn't want to give that no-credit applicant a card that isn't secured, fine. It's their money.
Except when it was just their money, they did give out unsecured cards to no-credit applicants. But because of the higher risk, they had to charge higher fees and interest. And this resulted in too many of those young people racking up huge debts. Part of the credit card reform fixed that by legislatively mandating limits on that sort of thing. So it's no longer about them doing what they want with their money. If it was up to them, they'd give you that card, put a 29% rate on it, and let you sink or swim based on your own decisions with that credit. But it's not.