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The Best Credit Card For Kids: Building Credit & Money Habits

Best Credit Card For Kids

Do you know what the best credit card for kids is? Are you thinking of getting your kid a credit card? One of the most important things that you can do for your child is to teach them about money. It’s never too early to start teaching them how credit cards work, and helping them understand why it’s important to get a credit card. Teaching children the best ways to use their credit card will help reduce the amount of risk they are taking on in life and make sure that they don’t end up with any debt when they’re older. There are many different types of kids’ credit cards out there, but not all of them have similar benefits or drawbacks. In this post we’ll discuss some of the best options available so you can find one that suits your family’s needs!

Why Should I Get My Kid A Credit Card?

Credit is the new way of life . If you haven’t been taught about finances, how do you expect your child to know? One of the best ways that parents can teach their children about money is by giving them a credit card. There are many benefits that come with getting one for kids:

-It teaches responsibility and builds good financial habits

-They don’t have to worry about cash

-It allows them to practice balancing a budget and paying off what they owe

-They have a line of credit when emergencies arise

-Learning about their credit score and how they can use it in the future

What is Credit? And What’s So Great About It Anyway?

– Understanding how credit works is a good way to gain control over your financial future.

– Credit cards – such as the Visa® card, MasterCard®, Discover® Card and Bank of America – are vehicles for charging purchases you make today rather than paying cash or setting up payment plans.

– The best credit card for kids can be called anytime day or night, and they’ll be able to speak with an agent who knows about the product.

Related: What Is Credit?

How Can I Build My Child’s Credit?

How Can I Build My Child's Credit? The Credit Repair Blueprint
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It’s important to start educating your child at a young age about credit and how to manage their money. Kids under the age of 18 can’t get a credit card but they can start building their credit. Here are a few ways you can build your child’s credit.

Add As An Authorized User:

One way to get your kid started on the path of finance and credit responsibility is opening them their own card. You can do this by applying for a new account, but adding them as an authorized user first.

Be The Primary Account Holder

If you’re worried about payments or know that your child has a history of not paying off their debts, you may want to be the primary account holder. You’ll have full access and control over your child’s card information

Qualified Student Credit Card:

If they’re in college or are 18 years old but don’t qualify for an unsecured credit card, look into student cards . These cards are designed just for students and have no credit limit – You can set up a credit card in your child’s name, using their SSN as identification.

– When they make payments on time and use the card responsibly (avoiding interest charges by paying off balances each month) you’ll build their good credit history.

– Your account is active until your 18th birthday or until you call to cancel it.

– You cannot have more than one account with the same card issuer at a time, but your child can sign up for their own credit card once they turn 18 if they wish (with higher rates and lower limits).

Open A Credit Card:

Once you kid turns 18 they are able to apply and open a credit card on their own. There are plenty of options they can choose from but their credit score will play a factor on which cards they will be approved for. If you have added your kid as an authorized user on your credit accounts they should have a well established credit so they can apply for any credit cards but if they have no established credit they can get secured credit cards or credit builder credit cards.

Before your kid applies for any credit cards have them check their credit score to see what type of cards they can get. You can check your credit score with Credit Karma, or myFICO.

Related: What Are The Best Credit Cards For Bad Credit Or Building Credit

How To Get A Credit Card For My Kid

Search for the best credit card institution online.

Find a bank that offers them an account with high limits and low rates I.e Chase or Capital One Credit Cards .

Sign up on their website, you’ll need to fill out your child’s SSN number as identification – You will also have to provide information about yourself including your name, address and social security number.

– Once you’re signed up, all they need to do is apply for a credit card with this bank online or in person.

After applying for the account (or having an existing one), your child will receive their own unique plastic card which can be used anywhere that accepts Credit Cards .

Related: 10 Best Rewards Credit Cards You Should Be Using

6 Things To Consider While Looking For A Credit Card For Your Kid

There are many different types of kids’ credit cards out there, but not all of them have similar benefits or drawbacks. In this post we’ll discuss some of the best options out there. Note, that some of these options may not be available for kids but they can benefit from them as an authorized user if the parent has one of these credit cards.

1: Credit Card For Kids with Low Interest Rate, Parental Control and Rewards Program

Under this option a child can earn rewards on purchases while the parent maintains control over how much they spend. These cards are usually best for children who have good credit and want to start building their own credit score (which will be necessary if they want to buy a car or home in the future).

2: Credit Card For Kids with No Interest, Full Control and Rewards Program

These cards offer no interest for 12-36 months. This is great when kids don’t have any credit established yet but you’re still worried about them making impulse purchases (which can be a big problem with anyone who doesn’t have any credit).

Related: Best No-Interest Credit Cards

3: Credit Card For Kids in Partnership with Their Parents

These cards are great for kids just starting out. They offer the most parental control and it’s easy to grow them up into more adult-like cards later on (though you need to keep in mind that their limit will be based on income and credit history).

4: Credit Card For Kids with the Biggest Limits

These cards are great for kids who have a record of responsible spending. They usually offer higher limits which isn’t good if they’re impulsive but it’s perfect if you want them to get started on the right foot.

5: Credit Card For Kids With Rewards

These cards are great for kids who want to start earning rewards as soon as possible and then use them for vacations or other experiences that can be shared with their parents later on. They usually offer limited parental control so take care not to let your kid go overboard.

6: Prepaid Debit Cards

Prepaid Debit Cards are another option for credit cards for teens, especially if they don’t have a checking account.

The card is funded with money that’s already on it (like a gift card) and can be used anywhere debit cards are accepted – online or in stores.

It also has the added benefit of not being linked to your own bank account or credit card so you don’t have to worry about overspending.

You can even set up a spending limit on the card and control how much they’re able to spend at any time.

At What Age Should I Get My Kid A Credit Card?

A kid must be 18 years old to get a credit card on their own. However, they can turn 18 with established credit if they are authorized users on a credit account. The earlier you start them establishing credit and teaching them how to use a credit card responsibly the better off they will be.

Here are some of the reasons why you might want to get it early:

  • If you’re starting your kids out as early as possible, they’ll already be on the right path for credit cards. They may not need to take out a student loan or have their parents co-sign if they’ve been responsible with this card since a young age.
  • Credit Cards also teach responsibility by forcing individuals to think about the future. They have to budget and make sure they pay their card balance every month or face a penalty interest rate .
  • Have established credit before they turn 18. If you start adding your kid to your credit card accounts as an authorized user, you can build up their credit history so when they turn 18 and can apply for their own credit card they can get a better interest rate, loan options and rewards.

What Is The Minimum Age To Be An Authorized User On A Credit Card?

  • American Express: 13 years old
  • Bank of America: No minimum age requirement
  • Barclays: 13 years old
  • Capital One: No minimum age requirement
  • Chase: No minimum age requirement
  • Citi: No minimum age requirement
  • Discover: 15 years old
  • U.S. Bank: 16 years old
  • Wells Fargo: No minimum age requirement

Related: What Is A Good Credit Score?

What Are The Best Credit Cards For Kids?

These are the best credit cards, prepaid cards and debit cards for your kids. Your child must be 18 years old to apply for their own credit card or you can add them as an authorized user or cosign for them.

Discover It Student Cash Credit Card

Best Credit Card For Kids  Discover It Student Cash Credit Card

The best credit card for kids is the Discover It Student Cash Credit Card. It offers many of the same benefits as other cards but with additional features that are specifically geared towards students.

  • The good grades reward program lets your child earn a $20 statement credit each school year when their GPA is 3.0 or higher. They can earn this bonus for the next five years.
  • Double your cash back with cash back match for all the cash back your earned at the end of your first year.
  • It also offers 5% on everyday purchases each quarter at places like Amazon, grocery stores, restaurants, gas stations and when you pay using PayPal. All other purchases still earn 1% cash back automatically, with no limit.
  • Your kid can design their own credit card or pick from a variety of fun designs.
  • And no credit history is necessary to apply and there is no annual fee.
  • If you’re looking for a card that will help your child establish good financial habits from an early age, the Discover Card is a great option.

Journey Student Rewards from Capital One

Journey Student Rewards Credit Card From Capital One
  • The Journey Student Rewards Credit Card from Capital One is a great way to build credit history while earning cash back rewards.
  • You only need to have a Fair Credit Score (630-689) to be able to apply making this an excellent choice for students and kids.
  • Earn $5 per month for 12 months (that’s $60) on select streaming subscriptions when you pay on time.
  • There is no annual fee
  • Earn 1% cash back on all purchases. If you pay on time to boost your cash back to a total of 1.25% for that month.
  • The rewards may be lower than the Discover card but it’s a great choice for those who are just starting out.

Chase Freedom Student Credit Card

Chase Freedom Student Credit Card
  • Chase Freedom Student has a $50 bonus after your first purchase is made within the first three months from opening your account.
  • $20 good standing rewards after each account anniversary for up to five years. Your account must be in good standing and not in default.
  • Earn 1% cash back on all purchases and your cash back rewards never expire.
  • You can earn a credit limit increase after making 5 monthly payments on time within 10 months from opening your account. This will increase your credit score.
  • You can access your credit score at any time with Credit Journey
  • There is no annual fee.

Best Debit Cards For Kids

1. Greenlight

Greenlight Debit Card for Kids - Best Credit Cards For Kids

Another Option for your kid is the Greenlight Debit Card For Kids. .

  • This debit card doesn’t help your child build credit but it ‘s another option that allows children to have their own card and learn about how credit cards work before they turn 18.
  • Kids can earn money through chores, set savings goals, and invest through the app.
  • Parents can monitor transactions, keep better track of spending habits in the beginning stages when children are just learning what it means to be a grown up.
  • There is no minimum age requirement.
  • When your child turns 13 you will receive notification from Greenlight and the card will be automatically converted to a co-branded credit card.

2. Current

Current Debit Card For Teens - The Credit Repair Blueprint
  • Current provides banking for parents and teens so you can help your teen to manage money with financial freedom using their own debit card.
  • Parents can set spending limits, set chores to complete, automate allowance payments, get notifications for all purchases, block specific merchants you don’t want your kid buying from, and instantly transfer money into your teen’s account.
  • Teens can use their own debit card to make purchases online or in stores, learn how to manage their own money and set budgets, save money with round-ups and savings pods (a saving tool that will round a purchase up to the nearest dollar and put the change in the savings pod), and can donate money to charity.
  • To sign up with Current the parent needs to sign up for an account, connect your banking account, and have your teen download the app and the parent will link their account to the teen.
  • Parents, even though your bank account is linked to your teen they can’t access your bank account or see your funds. They can only see their own.
  • There is no credit check to apply
  • No hidden fees
  • No minimum balance
  • No overdraft fees
  • No transfer fees
  • No activation or inactivity fees
  • Just $36 per year per teen.

3. GoHenry

GoHenry Debit Card For Kids - Best Credit Cards For Kids

GoHenry is for kids aged 6 to 18 where they can learn all about money.

  • Similiar to Greenlight, GoHenry allows your kids to earn money for household chores, and set savings goals for items they want to buy
  • GoHenry allows you to transfer money to your kids with a tap of a button and set automated allowances.
  • Kids can personalize their card with their own picture or choose a design of their own.
  • Parents can set rules of how much your kid can spend and instantly block a card that is lost or stolen.

Additional Information – Know How To Boost Your Credit Score With Credit Saint.

Final Thoughts On Credit Cards for Kids

The best credit card for kids is one that they’ll be able to use when they are older. This may depend on the spending habits and needs of your child, so it’s important to take some time and research what options are out there before making a decision. We’ve looked at several cards which we feel will work well with most children , but there are many more out there as well.

Teaching your child about credit and financial responsibility will prepare them for life as an adult as these topics are not discussed as much as they should be in schools. If you really want your kid to master the fundamentals of credit in a world where credit is king, sign them up for The Credit Repair Blueprint Course.

In this course, you’ll learn exactly what’s going on with your credit and how to fix it for good by:

-Understanding the difference between a bad score vs no score at all.

-Finding out why we have credit scores in the first place (hint: It has nothing to do with money).

-Learning how to make a plan and follow through with it.

-Finding out what you need in order for your credit score to be fixed, including understanding the importance of research and finding reputable sources.

-Knowing EXACTLY what you should do when it comes time to apply for loans or mortgages, as well as knowing exactly what to do if you are denied.

-And much more!

Credit Repair Course - The Credit Repair Blueprint