March 4, 2019 Sharon

Top Ten Credit Card Tips for Teens

Are you a teenager (or) parent of one? Are you planning to get a credit card to be solely used by the teenager?  Read on to know more:

  1. Need: Ensure that there are good reasons for getting a credit card.  Just because your classmates are having it, do not get a card.  These cards are associated with fees even when you do not use them.  Make sure that you will really use the card.
  2. Correct usage: Swiping the card for wasteful expenses just because your parent is paying the card is not justifiable.  If you develop this habit, you might continue the same trend throughout your life.  The consequences would be bad.
  3. Know about the card: Learn all the details about the card.  Know the maximum limit and interest rate and other charges.  Learn about risks associated with card usage.  You need to use them carefully while using these online.  You have to maintain the password confidentially.
  4. Prompt payment: Kindly note that default in payment can affect your credit rating.  Ensure that the payment is done properly.
  5. Offers: Few cards give offers to students.  Know them and make wise use of the offers so that you save more money.   Using for large spending like buying good hoverboards can accumulate more points/discounts which are beneficial.
  6. 6. Spendings: Just because you have got a card do not indulge in extensive shopping.  Do not eat out frequently (or) watch more movies.  Use the card only for essential expenses.
  7. Monitoring: Monitoring the card usage has to be done both by the teenager and by the parent.  This will help in maintaining the usage within the limit.
  8. Emergency: Know how to block the card immediately in case you get message alerts of fraudulent usage.
  9. Research: Do market research and find out the best terms before choosing a card.
  10. Parental guidance: Parental guidance, budget limit etc. are mandatory to assist the teenager to use the card wisely.