Parents. Cosigners—such as parents—aren't off the hook if their child rings up a large amount of debt and falls behind. "The bank considers the young person and the parent to be equal players. Now you have two people on hook to the payment rather than just one," says Ulzheimer.
Sufficient income? If a young person can't get a cosigner on a credit card, the only alternative is finding a job that pays sufficient income. But what exactly does "sufficient" mean? The law is not entirely clear. The bill states that the underage consumer must submit "an application indicating an independent means of repaying any obligation arising from the proposed extension of credit in connection with the account." It doesn't translate "independent means." John says that it will ultimately be up to the credit card issuers to decide if the consumer has enough income to receive a card.