Are you a parent planning to get a student credit card for your teen? If yes, this article was made for you. Below are some tips on opening a credit card account for students:
Tips on Choosing a Credit Card for Students
Open a Secured Credit Card. A secured credit card is one that requires a security deposit. If your security deposit amount is $300, the same amount would be given to you as a credit line. For parents who want to exercise control over their teen’s spending, a secured credit card is a good option.
Open a credit card account in your name. You may also consider providing your teen with a supplementary card. This is a credit card that is connected to your own account. By giving your kid a supplementary card, you can closely keep track of your kid’s credit card use. If you have kids in high school, this is a good choice to start training them on proper credit card management.
Co-sign for your teen. There are many credit cards for students that still require a co-signer. As a parent, you can act as a co-signer for your teen’s account. This means, you will be accountable for the payments in case your teenager fails to keep up with his/her payments.
Find a student credit card. There are also student credit cards in the market that do not require for a co-signer. For students who can’t find someone with good credit history to co-sign the account, it is still possible to open up a credit card without one. These credit cards for students may come with more limits such as lower credit limit but they are efficient tools in building your teen’s personal credit history.
Teach Your Teens about Correct Credit Card Use
No matter which type of credit card for student you acquire, you can do much in helping your kids stay out of debt trouble. Teach them about the wise use of credit card especially when it comes to submitting payments. Make sure that your teenager understands the implications of using the card.
It’s best to work with your kids in looking for the right credit card. You can compare the possible choices together and consider the disadvantages and advantages of each card. This way, your teenager would learn the importance of doing research and comparison before making a choice.
Teenagers should realize the importance of building good credit history while they’re still in college. Point out the advantages that maintaining a solid credit history especially after they graduated from college. When it’s time for them to look for employment, they should know that enjoying good or excellent credit rating can help them get hired more easily.
As a parent, you can share your personal experiences on being a credit card holder. What are the things that you’ve done that helped you attain good credit? Are there things that you could’ve done differently? How were you able to keep your credit history in good standing? What tips can you give your child with regards to using credit cards in building credit?
These are pointers that you can share with your teenager to keep them out of bad debt. After helping them choose the right credit card, parents should give guidance on using credit cards the smart way.
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