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« Back to articles from category "Finances"

The following article was published in our article directory on November 29, 2011.
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Credit Cards for Minors: What are your Choices?

Article Category: Finances

Author Name: chickie maxwell

If you are a parent and you want your children to have a more convenient time enjoying their youth, then you should consider gifting them any of the available credit cards for minors. Different types of credit card that are intended for minors are perfect for children who are traveling locally or abroad with a youth or school group. This will allow your children to eat well even if you are not with them since every fast food accepts these cards at present. This can also be used by your children in those instances when they face emergencies while you are not around. Another reason why you should consider giving them a credit card is that it will be a good way to teach them to become responsible financially.

If you have finally made the decision to give a card to your child, then it is important for you to take note of the fact that minors can never open their own credit cards. Minors are still prohibited to enter a legally binding contract. You can get a credit card for your child by attaching it to your account. Here are some of the ways to do it:

1. Secondary Card Holder. What you need to do is to list your child as a secondary card holder of your account. This option does not require applications or credit history checks since it will be your creditworthiness that will be checked. The secondary credit card usually comes with a different account number to make sure that all expenses are easily tracked. The only problem with this is that you, as the primary account holder, will assume full responsibility when it comes to paying the balance. Because of this, you need to be very cautious when it comes to teaching your child about the value of using the card responsibly.

2. Debit Cards. This type of card works similarly to credit cards. However, there is still one major difference between credit and debit cards - the difference is that there is no credit involved when using the debit cards. These cards are actually linked to your bank account. If your child makes purchases, then the funds will be immediately withdrawn from your account. Despite the convenience of using this type of card, you have to know that there are downsides to it. It will be possible for your bank account to be depleted if your child is unable to control his spending. As a means to help you out, you should consider finding a bank that provides a youth account. All you have to do is open a youth account for your child and link his debit card to it. This will allow your child to obtain complete control over his spending.

3. Charge Cards. This is a good way for you to stress the significance of proper spending management to your child. This card is considered to be a bit different from actual credit cards as its balance is required to be paid in full at the end of the billing cycle. Aside from that, the interest for a charge card does not accrue . This option also describes your child as a secondary card holder.

About the Author: MyReviewsNow offers advice about credit cards. To learn more about credit cards, visit our website at MyReviewsNow.net.

Keywords: credit cards

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