If you're over the age of 13, did you know you could have your own credit card? That's okay many teens don't know either - but now you do. The next part is to convince your parental units that you are mature enough to handle the responsibility of owning a credit card.
Here's some of the 4 most common arguments parents give for not letting their kids get a credit card:
1- I am not going to be financially responsible/ wreck my credit for you.
Answer - That's not how a teen credit card works. The amount that is deposited onto the credit card is the credit limit. There is no way to overspend. If an attempt is made to spend more than is on the card - the charge will be denied. Also, these prepaid teen credit cards do not report to the credit bureau and no co-signer is necessary .
2-I'm not comfortable turning you loose with a credit card.
Answer - Although the credit card will be in the teen's name only but the parents have full access to the account to send money, look at charges and any other area they feel needs to be monitored.
3-I don't need any more monthly payments!
Answer - There aren't any. Any amount from $5 to $500 can be placed on the teen credit card and this is a great way to get your allowance or payments for chores done around the house instead of getting handed cash. The transfers can be made via online or telephone and once the amount is transferred - that's it - there are no monthly payments with a teen visa.
4-How will you get money for your teen credit card?
Answer - Show your maturity and offer to work for it. Ask if there are any jobs you can do around the house for money. You can have a yard sale or even sell items you no longer want on Ebay (with your parents' help). Also, offer to mow lawns, walk dogs, babysit, wash cars , shovel snow for your home and for your neighbors.
If you're the crafty type, make bracelets and necklaces and sell them. The ideas is to convey to your parents, you've already thought about this (and now you have) and be serious about how to create money for yourself so your parents aren't solely paying for your credit card.
Now you are armed and ready with the facts, talk to your parents and see if they will agree to let you show your maturity with your own teen credit card and when you do get it - don't go crazy buying useless garbage - make every purchase count and you'll be on the way to learning true financial wisdom that many people twice your age still don't have.Labels: teen credit cards |
Know of a Credit Card for Teens?
