Raising a responsible teen means guiding them to the right decisions, including how they spend money and what credit card they use.
But many parents feel overwhelmed at the sheer number of credit card options out there today. And they don’t want to saddle their teen with a card that makes more sense for an adult with years of experience and credit.
If you fall in that category, you’re in the right place. In this post, we go over the best credit card for teens.
So you’ll be able to confidently choose a card for your child!
Sound interesting? Keep reading to find out more!
Education and Communication
Before you pick a card, it’s probably a good idea to sit down with your teen and go over some credit card basics.
Talk to them about how credit is different than cash, and what interest charges are. Give them the lowdown on late and missed payments and how they can affect their future.
Then have an open and honest conversation about whether they are responsible enough yet to have a credit card.
Every child develops at their own pace. So it’s not an insult if you feel they aren’t quite ready yet.
But if you feel they are, then make sure you look at each card for a few things. No annual fee is a good start. Look for low APRs too, assuming your teen might slip up and need to carry a balance now and then.
Capital One® Platinum Credit Card
The Capital One Platinum card has no annual fee, and your teen will have a chance for a higher line of credit if they make their first 5 monthly payments on time.
There is fraud coverage in cases where the card is stolen or lost. Plus teens, who are already accustomed to doing everything on their phones, will like the fact that they can access their account from their smartphone.
It’s a great card for your teen to use as a way to learn about credit, and slowly build it up.
Discover it Secured
This is a secured card, which means you start out by making an initial deposit that the card company treats as the beginning credit limit.
But don’t worry – the Discover It Student card is a real credit card. Your teen can use it to build their credit. And at the same time, you can feel comfortable knowing they won’t be racking up a ton of credit card debt any time soon.
The minimum initial deposit here is $200, and there’s no annual fee.
Capital One Secured Mastercard
This is another great secured card. And it has an even lower minimum deposit to get started. You can do an initial minimum deposit of $49, $99 or $200.
It also utilizes a smartphone app for ease of use, and there’s no annual fee. The Capital One Secured card also reports to the three major credit companies, so it will help your teen build their credit when they make payments on time.
The Best Credit Cards For Teens
Obviously, this isn’t an exhaustive list of the best credit cards for teens. But these three cards are excellent examples of what’s out there, and for the reasons we pointed out, are great as starter cards.
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