Getting A Credit Card for Your Children

It is not very common but sometimes parents get secondary credit card for the children as well along with their own.  Many credit card companies make the offer to consumer to get additional credit cards for the members of the family which may also include children.  This is usually done with the intent of providing children and especially teenagers with the means of shopping and buying things for themselves independently.  This results in a credit report being created in your child’s name.  As long as the credit card is used and payments are made on a regular basis positive information is reported to the credit bureaus and your child will develop a positive credit history from an early stage.

Another method of building a credit history for a child is by including them as authorised user on your credit card.  When a child is included as a joint account holder or unauthorised user on a credit card the credit account will get reported on the credit histories of both the parent and child.

Whether your child uses an independent credit card or is an authorised user on your credit card, introducing a child to the workings of credit earlier on in the stage of life can serve as an excellent educational tool.  Along with allowing them to use a credit card of the sake of convenience it is also important to educate them on the proper use of credit.  If your children are old enough and especially if there are teenagers parent should try make them responsible for paying some part of the credit card bill that they raise.  Educating them on responsible management of credit is just as important as building a credit history for them for the future.  Learning credit management and having a credit history when the time comes for them to apply for credit independently will ensure that they have a double advantage.  Credit is a powerful tool only if you know how to use it responsibly. Credit is something that should work for you rather than making you work harder.

Starting your children of early on with the uses of credit can also introduced them to the importance of credit reports and credit score.  Whenever you order your own credit report and score you can also get your children is credit report and have them go over it in order to understand the impact of their spending habits on the credit rating.  You can join a family credit monitoring service where you can not only access your credit reports must the credit history of all your family members any number of times that you want.

If your children have their own credit cards issued make sure that they keep it safely. You must also education on the principles of safe shopping and identity theft.