Teens And Credit Cards

Providing a teen with a credit card can be a good idea if the teen is responsible. Many teens have difficulty managing a little cash in their pocket it is hard to imagine what they would do if they had a credit card. If the teen is responsible and would only use the credit card as outlined it is a good idea. The teen would have cash in case of an emergency and could have access to some additional resources if they needed them. Some parents actually help the teen apply for a credit when they go off to college. The teen must be of legal age to get their own credit card however. The teen can be added to most accounts as a user but they are not a responsible part and will not establish any credit history.

Troubled Teens and Credit Cards

It would be hard to imagine how much trouble a teen with a credit card could get into. While it is not possible to purchase drugs with a credit card it is possible to purchase things sell them and use the cash for drugs. Most teen credit cards would have some type of cash withdrawal feature that could be misused. If a teen didn't run up exorbitant amounts with the credit cards it may take parents quite a while to discover the problem. If the teen is in communication with the parent on a regular basis the parents might notice a change in the teen prior to the teen getting too far down the road.

Teen Credit Card Fraud

The chance of a teen credit card resulting in fraud is reduced by the fact that the card is not really in the underage teen's name. If the teen credit card is in the teen's name they will need to exercise the same caution everyone else does with their credit information. This is not to say that the teen doesn't need to safe guard their account number, receipts, and statements. These are always in need of protection. There are many credit card criminals that would not have a problem stealing account information from a teen's credit card. The responsibility of the teen again becomes a factor. A mature responsible teen will realize the importance of safeguarding their credit card and the account information associated with it.

Teen Credit Card or Prepaid Teen Credit Card

Another option to assure that a teen has emergency funds would be to issue them a prepaid credit card. This type of credit card works the same as a traditional credit card. It is similar to a pre-paid telephone card. It works great until the funds are depleted. This gives the parent complete authority and control over the teen's credit card. If the college age teen is not checking in regularly the parent could let the funds run out and wait for the teen to get in touch with them.