We here at Personal Finance Made Easy have been searching the web again. We came across a very interesting post today and thought we would share it with you.
To co-sign or not to co-sign? Parents: Whether or not your college freshman has a credit card this year is largely up to you. As of February 2010, students and other applicants under 21 years old must have a parent as a joint account holder unless the underage applicant can demonstrate that they have enough annual income (perhaps $3,500 or more) to repay the debt.
Specifically for underage applicants, the credit card application must include either:
(1) Information indicating that the underage consumer has the ability to make the required payments for the account; or
(2) the signature of a co-signer who has attained the age of 21, who has the means to repay debts incurred by the underage consumer in connection with the account, and who assumes joint liability for such debts.
You can read the article in it’s entirety here.