Teens armed with a credit card don't have to carry cash, and don't need to ask mom and dad for money having a credit card also gives them more flexibility to handle emergencies, such as car breakdowns. Should teens and college students have credit cards young people and debt according to a 2006 study, the average twenty-something is over 23,000 dollars in debt. A person younger than 18 cannot apply for a credit card without a parent’s approval, so this is a good way for a parent to monitor a teen’s card use while building a credit history for the teen.
Teens should have credit cards don’t you think life would’ve been easier if you had a credit card when you were younger most people wouldn’t think, but you more than likely would have had a better future given a credit card and proper instruction, college bound teens would more than likely know how to better prepare for debt. A credit card allows teens (and watchful parents) to track spending online tools make an easier job of tracking credit card use if your child only uses cash and checks, it becomes next to impossible to see a spending pattern or recognize how much they are spending and on what. Student credit cards are targeted to young people who may never have owned a credit card before and who may have little or no established credit history of their own income requirements are often low, and these student cards usually come with low credit limits for new cardholders. Prepaid credit cards can also be used to book hotels or to rent a car, which requires a credit card on file cons of prepaid credit cards for teens won’t help your teen’s credit.
The law says that anyone under the age of 18 cannot have a credit card in their name however, you can add your kids to your credit cards, which raises the equally confusing question -- should you. Jason hall: teenagers may be the absolutely worst age group to give a credit card to they're lazy, poor, and overloaded with hormones that make them walking impulse buyers. Q my 18-year-old daughter is new to banking and credit she knows to pay off any credit-card balances each month however, should she carry a debit card. Giving credit cards to teenagers is a touchy subject some people feel that handing a credit card to a teenager is like giving them permission to go out on a very large spending spree, or advocating that they go into debt. A teenager given unsupervised access to a credit card, with the maximum credit limit, would be indefensible most credit cards have a credit limit of two to four times the principal cardholder’s monthly income.
Credit scores regular, non-prepaid debit cads (such as your basic atm card) have no effect on a credit score, either if you're looking to keep your teenager's file thin and pristine, don't worry. Teen credit cards get around this by using the “prepaid” and “secured” credit cards, as well as by having parents as the primary borrowers if you want to open a credit card account for your teenager, you will have to open with you as the primary borrower. Another reason teenagers should have a credit card is because it will teach them to be responsible with money this can happen with a card that has limits on it if the money is spent fast, the parent shouldn't give the teen anymore credit on the card.
Why teenagers should not be allowed to have credit cards often credit cards are regarded as an extension of one’s allowance and hence, misused for buying things that are totally unnecessary when the credit due is not paid timely, the card becomes more like a liability than an asset. However, once teens have shown the ability to maintain and balance a checking account with consistent reliability, they are probably ready to start using a credit card don’t just hand over the. The credit card marketers have done such a thorough job that a credit card is seen as a rite of passage into adulthood american teens view themselves as adults if they have a credit card, a cell phone and a driver's license.
Teens can use credit cards wisely especially if their parents have helped them understand how to manage money wisely from a very young age it does take a commitment from both the teen and the parent but it will make such a difference for a young person who knows how to handle their money. A person should have the topic of having a credit card well-processed and examined in their minds because there may be a person out there that is over 21 and is not still capable, knowledgeable, and responsible enough to handle the idea of having a credit card. Should teenagers have credit cards february 2013 teens should have credit cards don’t you think life would’ve been easier if you had a credit card when you were younger most people wouldn’t think, but you more than likely would have had a better future given a credit card and proper instruction, college bound teens would more than likely know how to better prepare for debt. Peer pressure can cause teenagers to spend more money if teens had a credit card, they can spend as much money, that they do not have,as they want peer pressure kicks in because most teens would do anything not to be humiliated for example, if a whole bunch of teens have $200, another teen will.
Several credit card providers have created products to comply with the new regulations while holding on to the teen demographic one option is the “pre-loaded” (or prepaid) card this product allows parents to “load” the card with funds and to later replenish those funds when needed. Disadvantages of teenagers having credit cards by linda ray you have to earn the money to pay the balance on the card ideally, teens should develop an understanding of money and the value of work before obtaining a credit card creates debt. Before handing a teenager a credit card, they should first have experience using a checking account of their own they should be able to write checks, balance their checkbook, and maintain the checkbook register. Unsecured credit card: even with the recent card act, which places stricter underwriting policies on credit card holders under the age of 21, some teens may be eligible to receive an unsecured credit card a teen with high enough income can get an unsecured credit card in his name.