What Are the Best Credit Cards for Minors Under 18?
Credit cards have become a commonplace financial tool for people of all ages, including minors under 18. While it may seem unusual for a minor to have a credit card, it can actually be beneficial for them to learn about responsible credit use at an early age. In this article, we’ll explore the best credit cards for minors under 18, as well as some tips forresponsible credit card use.
Best credit cards for minors under 18
1. Discover it Student Cash Back
The Discover it Student Cash Back card is an excellent option for minors under 18 who are enrolled in school. This card offers 5% cash back on rotating categories each quarter, such as gas stations, grocery stores, and restaurants, and 1% cash back on all other purchases. Additionally, Discover matches all cash back earned in the first year of card membership.
2. Capital One Journey Student Rewards
The Capital One Journey Student Rewards card is another great option for minors under 18. This card offers 1% cash back on all purchases, with an additional 0.25% cash back bonus for on-time payments. It also has no annual fee and offers access to CreditWise, a credit monitoring tool.
3. Chase Freedom Student
The Chase Freedom Student card is designed specifically for students, including minors under 18. It offers 1% cash back on all purchases, with the opportunity to earn 5% cash back on rotating categories each quarter. This card also has no annual fee and offers a $50 bonus after the first purchase.
Tips for responsible credit card use
1. Set a budget
It’s important for minors under 18 to understand the concept of budgeting before using a credit card. Encourage them to create a monthly budget and stick to it, including any credit card expenses.
2. Make payments on time
Late payments can damage a credit score, even for minors under 18. Encourage responsible credit card use by emphasizing the importance of making payments on time.
3. Monitor spending
Credit card statements should be monitored regularly to ensure that spending stays within budget and to catch any fraudulent activity. Encourage minors to check their statements at least once a month.
Credit card savings and risk avoidance
When applying for a credit card, it’s important to consider the annual fee and interest rates. Look for cards with no annual fee or low interest rates to save money. It’s also important to avoid carrying a balance on the card, as this can lead to high interest charges and debt.
Credit card companies may offer additional benefits, such as rewards programs and fraud protection. Research different companies and compare their offerings before making a decision.
In conclusion, minors under 18 can benefit from responsible credit card use, and there are several great options available to them. Encourage responsible spending habits and monitor credit card activity to avoid any potential risks.
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