Ways To Find a Credit Card For Those Under 18

Credit Card Options for Teens

• Assess the situation: Take a few days and decipher your teen's spending habits and maturity level. Is he or she ready for a low balance card? Does he or she need to begin with a savings account or is he or she ready for a checking account? These are all questions that you should answer to know how to begin.
• Choose a teen credit card option that fits your teen's maturity level and spending habits. Should it be a debit card, prepaid credit card or low balance credit card, it's imperative that it's something they are able to handle.
• Make sure the credit card option you choose for your teen is one that a parent can actively participate in. Many have parental controls and digital allowances to keep parents in charge of spending.  Keep in mind that a child under 18 will not be able to apply for a card independently, so a parent will have to be a co-signer. 
  

Types of Cards for Teens

• Debit Cards: If your teen has a job or even a steady allowance, but is unfamiliar with the ins and outs of saving and spending, then a debit card/checking account is perfect. It gives them a chance to learn about interest rates and the effect each purchase has on their account balance.
• Prepaid Cards: This is another great way for a teen to ease into the wonderful world of plastic. They are able to see the effect of interest rates and balances, as well as check their monthly statements.
• Low-Limit Credit Cards: If your teen is mature enough to understand the consequences of overdraws and fees, then it may be time to cosign for that first low-limit card. It will give him a chance to begin building a sound financial future and credit history.
• Secured Cards: This will also give your teen a chance at building a sound credit history. However, there is also the fee, fines and payments associated with these cards that help to educate teens on money management skills.