New Law Could Cause Problems for Stay at Home Moms

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CNS News is reporting that a stay-at-home parent without significant outside income could find it difficult to open his or her own credit card account under a measure signed into law by President Obama.

The Credit Card Accountability Responsibility and Disclosure Act requires credit card issuers to verify income before allowing someone to open a new account. The rule took effect in October and prohibits consideration of household income if only one person is applying for a credit card account. It says that a card issuer must consider a consumer’s independent ability to make the required payments.

A stay-at-home mom must prove that she alone can make the payments with only her income sources. If she cannot, she would have to have her working partner co-sign in order to obtain the credit.