A credit card for children can be a great way to help build credit history. The process is simple. The company will send the card to your child if you add them as an authorized user online. A great reason to apply for a credit card to your child is the increasing popularity of credit cards. T.RowePrice's recent survey found that 17% had a credit-card for their children aged eight-14.
Greenlight
Greenlight credit is an option for parents who want to get a credit card that will allow them to pay for their kids' college expenses. The green card comes with zero foreign transaction fees, no ATM fees, and no card purchase fees. The card also includes features such as contactless payments and allowance tracking. It charges a $4.99 monthly service fee. It helps children develop financial responsibility by attaching chores to allowances and rewards. Children can use the card for chore checking and instant notification when they are completed.
Parents can load money on their child's Greenlight card manually, or they can set up recurring transfers. This way, weekly allowances can automatically load to the card. Parents can also set-up parent-paid interest to their child's accounts.
GoHenry
The GoHenry credit cards for children are designed with financial education as a focus. The features of the GoHenry credit card for kids include a customizable debit card and an application that allows children set savings goals as well as manage their spending. Parents can monitor their child's spending through the app, and the card is FDIC-insured. Parents can also view their child's spending history and track spending trends in real time.
The GoHenry credit card for teens and the GoHenry card for kids have tools that teach children financial responsibility. For instance, the app features colorful budgeting tools and a chore tracker that adds money to the card for household chores completed. This app gives parents the opportunity to monitor their children's spending habits and encourage financial responsibility.
Apple card for iPhone
Apple's credit card for children is a great way for children to learn about credit. This card offers a variety of features, including spending limits and the ability to set up a budget for your children. The card can also be shared with an older sibling to help children learn financial responsibility.
Parents can also establish spending limits and form a family sharing circle to track spending. Parents can invite five people to share their credit card and build it together. Each user must have at least 13-years-old and must agree that they will be responsible for spending. Both the owners and the users are responsible for the payments. The activity is also shared with the credit bureaus.
Secured credit cards
Secured credit cards are a good way for kids to build credit. However, there are a few things you should keep in mind before giving one to your child. The first is that secured credit cards are extremely expensive and have high interest rate. In addition, over-limit transactions are subject to a fee. A secured card has one disadvantage: it is difficult to transfer balances between cards. Better is a card that allows for you to set a spending limit, and then you can change it at any time. It is not a good idea for your child to get a card with a high limit and then have to pay it back.
Secured credit cards for children can help your child manage money and stop over-limit charges. They can be used to teach your child about credit limits, and help you build credit history. It's also a good idea for children to start early because it will prevent them from making costly mistakes in the future with credit cards.