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This weekend, under new credit CARD legislation, consumers were given more transparency and protection against issuers. Furthermore, the CARD Act provided parents with greater peace of mind, prohibiting teens under the age of 21 from applying for credit without a co-signer or the financial means to repay the debt.

But, as Technorati reports, cards may not be all that bad for kids heading off to college.

A co-signer with a good credit history can provide a teen with a card they can to use to learn how to manage their finances in the future. Owning a card can also teach a young adult money management skills and responsibility. The more opportunities young adults have to build a credit history, the more likely they are to be approved for loans and other lines of credit later down the road.

Co-signers still maintain a certain amount of control over the joint account. Parents who sign for their children have the opportunity — and an incentive — to monitor their children’s transactions. Active monitoring can reduce the risk of their children accumulating large debt levels, which can damage their parents’ credit scores because co-signers share responsibility for paying off any such debt.

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