The Consumer Financial Protection Bureau (CFPB) on Nov. 4 removed a provision, established under the Credit Card Accountability Responsibility and Disclosure Act, that had blocked many people with no individual income from applying for credit. The restriction was intended to keep young adults out of credit card debt, but the CFPB says it inadvertently led to "otherwise creditworthy" applicants being turned away.
Industry data suggest "that a significant number of [affected] individuals may be stay-at-home spouses or partners with access to income from an employed spouse or partner," the CFPB reports. Based on this information, the agency moved to adjust the restrictions. Credit card issuers now must take household income into account, rather than individual income, when someone applies for a credit card under his or her own name, says Janna Herron, credit card analyst at Bankrate.com. Stay-at-home spouses and those with similar financial arrangements may be eligible