Can Your High School Student Have A Credit Card?
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Most credit cards designed for students were created for college students – but can a high school student get a credit card? The short answer is: YES. The long answer would involve a lot of discussion!
As teenagers, many go out and get their first jobs, or are otherwise earning income from allowances or babysitting. It's the perfect time for parents to help them learn the basics of money management; which is something many families skip over; leaving graduating high schoolers to move on to college or the “real world” with very little real world knowledge of finances.
Just a few short years ago, it was not only next to impossible to give a teenager a credit card, but you would be considered a little on the crazy side to do such a thing! Times have changed though, and there are various credit cards on the market for teenagers that parents can use to help them learn the basics of financial responsibility.
Can Your High School Student Have A Credit Card?
Credit cards for teenagers include features like parental control and digital 'allowances'. It may be sweat-inducing to give your teenager a credit card, but a credit card makes a good educational financial experience for your child- before it's too late for you to help them become financially responsible individuals:
Teach Them About Good Credit. With so many adults currently struggling to re-establish their credit or increase their income so it's easier to keep up with their monthly payments, it's never too early to teach teenagers how to manage money. Teaching them at a younger age can prevent them from over spending once they're on their own. Nellie Mae claims that the average freshmen college student has over $1,500 in credit card debt; and once a student realizes how easy it is to “get what they want, now”, it becomes habit to use credit cards to buy the things they want while in college. If the teenager enters the adult world with solid money management skills, they're less likely to get in over their heads in debt.
Your Options. If you're not concerned about your teenager establishing a credit history at this time, and simply want a way to teach the basics of money management, you can look for a prepaid debit card with a Visa or MasterCard logo. Some of these cards may have annual fees or transaction fees- which just gives you another opportunity to show how using a credit card isn't the same as buying with cash. You could also sign your teen up for a checking account with debit card; or put them as an authorized user of a credit card account you already have- or open a new credit card account with a low limit and put your teen on as a cardholder.
Can Your High School Student Have A Credit Card?
Gives Teen Access to Emergency Money. When your children become teenagers, chances are they are starting to spend more time away from you and on their own or with their friends. Sometimes they may have a need for cash- if a car breaks down and they need to be towed off the highway, or for long distance phone calls for example. Having a credit card in their pocket will make it possible for them to handle an emergency that requires access to money and can give you a little more peace of mind.
If you decide you are ready to teach your teenager the basics of money management and credit, make sure you spend some time investigating the various options available to you before choosing an option. Regardless of which option you choose, you'll want to be sure to spend adequate time with your teenager and not expect them to know what to do with it on their own! Try using a service like Citibank's Credit-Ed program: http://www.citi.com/us/cards/cm/student/index.htm
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Should I close this credit card account?
I am a 19 year old college student and I have 3 credit cards. I never carry a balance on any of them.
The cards are:
Citi Student Rewards Card $5300 credit line, opened 03/08, no annual fee, 11.24% APR
TD Bank Cash Rewards Card $2000 credit line, opened 11/08, no annual fee, 18.99% APR
Bank of America “Platinum” card $1000 credit line, opened 7/08, $29 annual fee, 16.24%
The Bank of America card was originally a partially-secured card, but has been converted to an unsecured card. It had become unattractive to me because of the annual fee, the relatively high interest rate, and the fact that it earns no rewards.
So my question is, should I close this account? I am really trying to build a very strong credit score and I don’t want to damage it by closing the account. Is there any way that I can get a different BOA card and convert the account without it showing as closed on my credit report?
Will Chase bank take away my student loan money that was transferred into my grandmothers account?
Well what happened was I got a Federal Student Loan and it automatically goes onto a student refund prepaid Citi account, but I did not have a card through them yet and need my money ASAP for textbooks and living expenses, so my grandma said I should transfer it to her Chase savings account using her routing and account number to her savings, so I did with my banks direct deposit option, but she later then discovered her savings account was closed without notice due to inactivity so my money is supposed to go to Chase then they’re supposed to send it back to my bank account, but the thing is I used to have an account with Chase bank but I closed it because they gave me a bunch off fees that I couldn’t pay they were way too much so they sent me to the credit bureau. Now my question is will they see that I tried to get my money into my grandmas account through a student account and take out what they say I owe them then return the rest?
It’s not a high interest student loan.
Nor is it a Private loan, its through my school.
Someone has issues trying to argue over yahoo answers, probably a nasty rich b**** vvv haha. But no I’m not hoping it’ll go into my grandmas closed account I’m hoping they’ll return it to my student account without taking any of it. It’s through my school not sallie may or whatever.
Why wouldn’t I be approved for a student credit card?
I have almost zero credit history but I thought that wouldn’t matter since it is a student card. I do have a full time job and a checking and savings account, yet I’ve been denied the Discover student card and the Citi bank student card. Does anyone know what they look for when deciding to approve or deny an application?
You should close the Bank of America card if you’re not using it . You have other cards which is enough. Make sure when you close it you get in writing.
Citi Dividend Platinum Student Visa Card or Wamu Platinum MasterCard?
I am a college student with two checking/saving accounts. I have one with BOA and WAMU. I been having these accounts open for over a year already and I can honestly say I handle my money very well. I want to apply for my first credit card, but I do not know if I should apply for the Citi student credit card or the one Wamu offer me. The APR rate that Wamu has given me is 11.99% and 0% until July 1, 2009. However, some research said choosing a credit card should have some benefits. For example, cash back rewards. What do you think?
I forgot to mention.. I have no history either.
I use a card that pays me 1% cash back each year.
I like it, but keep in mind if you don’t pay the statement balance in full each month, you pay interest charges on it. That interest charge alone can wipe out any cash back incentive.
If you can promise yourself to pay it back in full each month, go for the cash back.
Read closely as you’ll see if the reward is “points” instead of cash %, the point equivalent will be only 1/4%.
Go for one that plainly says a % cash back. Avoid the “points” systems as they hide a crummier rate of return.
Talk to the bank where you have a checking and savings account and ask them if they offer a secured credit card. You use your savings account to secure the card.
As to why you would get turned down, it makes no sense if you are applying for a student card. You should have received something from them saying why they denied you. Just make sure they’re not saying there’s any negative info out there about you. Have you checked your credit report? The legitimate site to get your free annual copies from the 3 major reporting agencies is:
http://www.annualcreditreport.com
Don’t listen to all the commercials.
Good luck.
When opening an account with citi bank will they give you a credit card?
I am 18 and they advised I open an account so I may cash checks without an adult. they opened a savings account, dredit card account and gave me some money left over. I am unemployed so they gave me a student card. Is there any fees because I did not want to open a credit card or debit card or whatever it is if there will be some monthly charge
Doesn’t anybody read the fine print? Read the disclaimer or informative brochure they gave you with the credit card! Or call the 800 customer service # and ask them if there are any fees attached. Person who helped you to open this account should have told you (by law) of all fees connected with it. Every bank gives you a debit/credit card now. If they are gonna charge you ANYTHING, close that account and go to a bank that has absolutely free checking. Damn banks make enough money–and mistakes–and then take gov. money when they get in trouble. No-one is gonna give you a million dollars if you screw up, and lose money! Go to a bank (or credit union) that is free!