Credit cards for students and teens

More and more teens have credit cards. Like the population at-large some have good deals, some don't. The same is true of college students. Card companies target both groups because they are a fast g rowing segment of the population and they have money to spend. So it's not a surprise when a 16 year old in high school or a freshman on her way to college receive piles of offers in the mail.

You'll see rates that are generally higher than normal cards, and you'll also see that credit unions tend to offer the best deals. Look carefully, because while cards are easy to get the card companies commonly offer heftier fees and interest rates, and smaller credit limits, with these cards They're easy to get of course because parents are often obliged to back up behind their children's buying in the event the kids run a little short. Even if they aren't legally obligated they commonly come to the rescue and pay those bills. So parents, make sure you read ALL the terms, especially the fine print, especially with co-signed cards. You'll probably be there for the children, but it's nice to know before hand any rules and regulations that could back you into a corner.

Which brings up another golden rule: experts in debt and credit management say emphatically that students should really use the cards for emergencies (pizza is not an emergency) Otherwise they're paying expensive dollars for everyday purchases, running the risk of damaged credit and learning some bad credit habits at an early age. Consider putting a voluntary limit of less than the card company will allow - after all if the card is used for emergencies only you don't need all those thousands of credit dollars out there tempting you. If a young person has a credit history and can qualify for a regular every day credit card, it may work out to be a better deal. (But pizza is still not an emergency.)

All students and teens should remember that a credit card is not only an efficient way to get what you need, it is a stepping stone to a solid credit history, something of major importance to their future. And, by the same token, if it's misused it can put a blot on their credit record that will haunt you for years and make a lot of things they want to do harder to do. Secured cards are also an option for both teens and students. Banks commonly offers these products, cards where you (teen, student or parent,) put money into the bank and that is used as a guarantee if you fail to pay when bills arrive. The credit limit is determined by how much is secured in the bank as collateral.