Credit Card For Teens

Teenagers, not often known for their conservative purchasing decisions, usually rack up too much credit card debt. But some parents still prefer to give them credit cards because they believe their youngster should learn the value of responsible handling of one's finances. Others however are wary of giving credit cards to their young ones for fear that they will accumulate too much debt.

There are a lot of banks that offer credit cards specially tailored to answer the needs of high schools kids and college students. Most of these cards are issued with the guarantee of a co-signer such as the parent or the guardian. So while the co-signer has the ultimate responsibility for paying the card fees, students will also learn that they can use their credit cards in building a good financial background even though they don't have work.

If you are interested in giving credit cards to your youngster, make sure you have checked out all your options. There are banks that charge exorbitant fees, with the explanation that this is needed because the applicant does not have any credit history.

Before you give a credit card to your teenagers then you should understand the risks involved in doing so. Remember that you have no control on your child's spending. Any reckless behavior of your kid would certainly lead to too much debt, which you will have to pay since you are the co-signer. The credit limit for your child should be the lowest possible, so you can make sure he or she uses it only for emergency purchases. It also encourages them to have a certain budget and work on it, and to always pay in a very timely manner.

If you are not confident with your child's purchasing habits, give an extra credit card issued by your credit card company to your child. This comes for free, and your credit card company would normally not charge you any costs for this extra card. This way your kid will be less tempted to make any unnecessary purchases, and it allows you to keep a close tab on their spending habits.

You can also give a pre-paid credit card to your kids if they are still too young to have one. With this card, your kids will have an easier time using it since when the card balance runs out, they would not be able to use it.