Creditnet News Story

Young people increasingly being refused when applying for credit cards

Monday, March 15, 2010

By Thomas Astery

Younger people may have a harder time getting credit because they lack a long credit history.

Though younger people may get credit card offers in the mail, some seem to be having a harder time getting approved for them in the last year.

According to a recent survey from FindLaw.com, 15 percent of respondents between the ages of 18 and 34 said they were refused a credit card account in the past year. Overall, the survey showed that 22 percent of respondents in that age group were denied some form of loan in the past year, which would include mortgages or auto loans.

Stephanie Rahlfs, an attorney and editor with the legal site, said that trying to borrow money often requires meeting stringent standards set by banks. Furthermore, other reports have indicated that lenders have raised requirements for credit scores as they dealt with the most recent recession.

"And it can be particularly difficult for younger people, who often have had less time and opportunity to establish a credit history, work history, etc.," Rahlfs said.

New laws at the federal level will also make it difficult for younger consumers to get credit card offers in the first place. Through the Credit Card Accountability, Responsibility and Disclosure Act, prescreened credit card offers to younger people have been limited.