Teenage Credit Cards

There are many reasons why you may want to get your teenager a credit card. Some parents like to allow their children the freedom of being able to get something they want without the parents being present to sign as long as permission has been given. Other parents find that teenage credit cards will offer a responsibility that their children need to learn, and it is better to offer the credit card while there is a modicum of control as opposed to when they are older and using cards without thinking of the repercussions.

There are several merits of teenage credit cards the first being able to teach your teenager how to use the card. The teenage credit cards must be co- signed by the parent. In other words for the teenager to actually get the card the parent must be on the account. There are two types of credit cards for teenagers. The first is a prepaid card and the other is a credit card with an actual limit. The credit cards with the limits are the hardest to control with your child. They can see it as free money, but forget that they need to pay it back on time. The prepaid option allows you the most control in how much they can spend at any one time.

The prepaid credit cards are going to offer heavy fees. The fees are usually start up fees, transaction fees, and reload fees. These fees can be less than fees you would incur by offering your teenager a true credit card. Late fees with regular credit cards are usually 29 dollars or more depending on the card company.

When you are balancing the merits of the teenage credit cards you will need to decide just how much control and in what light you would like to teach your child. If you feel the best option is letting them see how much trouble credit cards can be by improper use then you may just let them have the regular card. On the other hand if you don't want to damage their credit history you may need to opt for the prepaid card. Since the prepaid credit card is under your control for how much you put on it and there are no late fees or payments to be made you often have better control over the credit history by creating a good standing. The regular credit cards can be detrimental to ones credit history even at a young age if you allow them a regular card.

There are other things to consider besides credit history for the teenager. You must also look at the credit history of your own situation. Since the card is effectively in your name as you are responsible it could have a damaging effect for you as well. Lastly you need to consider if paying interest or no interest will be the way to go. With the prepaid credit cards there is no interest that you pay just fees.

Oge Nwaozuzu is a writer on credit cards and you can view more of his work at his blog http://www.creditcardsforrecession.com

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