The Federal law doesn't provide any restrictions about issuing credit cards to minors. In fact, credit card companies consider teenagers as a very profitable market. Most credit card companies often require a co-signer when a minor applies credit cards for students. When a teenager reaches the age of 18, he has the right to sign-up for a credit ca on his name even without a cosigner.
Are Student Credit Cards an Advantage?
Some parents feel that providing their kids with credit cards while they are still in high school help them learn about money early in life. With proper guidance and support, obtaining a student credit card can help young people learn about how to handle their finances properly.
A student credit card is a great way in establishing a credit history in preparation for their future. Some credit card companies refuse to grant credit card approval for those without a credit history. But with the help of a parent as a co-signer, it will be much easier to get a credit card.
Or a Disadvantage?
On the other hand, a young person with a student credit card can also get into trouble. The convenience that a student credit card can bring may lead to uncontrolled spending. With just one swipe of the card, they can purchase an item easily at any time. Eating out in restaurants with friends is also just as convenient. They can easily do so without bringing with them any cash.
The problem comes when it's time to pay the bills. At the end of the month, their billing statement may reveal that they have spent more than their allotted monthly budget. It is also a possibility that a student who does not think about his spending for the past month has already exceeded his allotted credit limit.
Read Full Article: Credit Cards and High School Students
Are Student Credit Cards an Advantage?
Some parents feel that providing their kids with credit cards while they are still in high school help them learn about money early in life. With proper guidance and support, obtaining a student credit card can help young people learn about how to handle their finances properly.
A student credit card is a great way in establishing a credit history in preparation for their future. Some credit card companies refuse to grant credit card approval for those without a credit history. But with the help of a parent as a co-signer, it will be much easier to get a credit card.
Or a Disadvantage?
On the other hand, a young person with a student credit card can also get into trouble. The convenience that a student credit card can bring may lead to uncontrolled spending. With just one swipe of the card, they can purchase an item easily at any time. Eating out in restaurants with friends is also just as convenient. They can easily do so without bringing with them any cash.
The problem comes when it's time to pay the bills. At the end of the month, their billing statement may reveal that they have spent more than their allotted monthly budget. It is also a possibility that a student who does not think about his spending for the past month has already exceeded his allotted credit limit.
Read Full Article: Credit Cards and High School Students
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