Credit card calamity

Today the U.S. House passed a bill that will enact major changes in the way consumers interact with their credit cards and credit card companies.

The Credit Cardholder's Bill of Rights Act of 2009 was passed yesterday by the Senate, so now it only awaits presidential approval before becoming law.

Passage of the bill is consumer friendly in that it radically changes the way credit card companies are allowed to treat their customers, including extending the period of time between the postage of a bill and its actual due date. This will eliminate the ability of credit card companies to post a bill 10 days before its due with the goal of increasing the chance of charging customers late fees.

However, the bill also prohibits people under age 21 from obtaining a credit card without cosigning with a parent. While the idea is to nobly prevent credit card companies from bullying the college-aged crowd, it will ultimately harm young people in the future by stunting their ability to build credit.

I've been steadily building credit since I graduated from high school. I would buy something small with my credit card, pay it off, then start the cycle again the next month. Within a few years, I've built up thousands of dollars worth of credit, I have two credit cards, I've got a great credit score and I've learned to be responsible in the way that I handle credit.

Credit cards shouldn't be your enemy or your vice; they're your friends! They can get you out of a tight spot, give you a chance to treat yourself and help you become more responsible with your finances. You just have to learn to use them correctly. And the sooner young people learn to do that, the better.