Credit Cards for Teenagers

Credit cards are financial tools that need to be used by those who are responsible enough to manage them. Sometimes, though, there is a need for others who have not yet proved their financial responsibility to have use of a credit card. One such group is teenagers, and giving credit cards to teenagers is something that a lot of parents often struggle with. If you're smart about it and choose the right type of credit card, then your teen can learn about financial responsibility and have the money that he or she needs while keeping credit card information safe.

The fear of giving a teenager a credit card results from thinking that they are just going to go crazy with the card and rack up a bunch of charges. This type of fear is not unfounded, and it's actually something that a lot of parents end up dealing with. If your child has a card that is linked to your account, then you're going to be the one who ends up paying for it in the end. There are, however, some ways to avoid this and make sure that your teen doesn't go crazy and rack up a lot of bills.

Consider Your Options

To ensure the safety of your finances and protect your teen, you may want to go with a credit card company that will allow you to set a limit on your teen's card. A lot of times, you can still get your teen a card on your account but will be able to set a different limit for spending. If your teen tries to go above this limit, then the card will be denied. You should be careful about this though, as you may get charged a fee if the card is denied.

Another option that you can go with is to choose a secured credit card for your teen. These are really popular options because they only let your teen use the amount of money that you put on the card. If you choose not to add money to it for your teen, then he or she will not be able to spend any more money. These cards can be a great way of ensuring that your teen does not go overboard and put you in an awkward financial position. Also, this kind of thing can encourage your teen to earn money to put on the credit card.

Both of these are great options that can help your kid learn to be financially responsible. Before you choose either one of them and a credit card company to go along with it, you need to make sure that you find out what all of the fees might be for them. You may be charged a fee for placing a lower limit on your teen's account, and you may be charged a fee for adding money to the secured credit card. You will want to take whichever option is going to be best for your financially.

Let Teens Go Solo

Credit cards for teenagers do not have to be the responsibility of parents. Most credit card companies are going to offer teens of legal age the opportunity to take out cards in their own names. If this is something that your teen is really interested in, then you should let him or her make that decision. The best thing that you can do is advise your teen about what is the best way to handle having a credit card. Sometimes, all it takes is talking to your teen to make an impression.