New responsibilities and privileges come up in the teenage years, like getting a driver’s license and being able to vote. Your child will also discover some financial opportunities, like having a personal bank account and credit card. With all of the options out there, it is essential to know all of the financial information for your future.

When Can You Apply for Credit Cards?

You can add your child as a user at any age on your credit card. But, for your child to obtain their own DEXSTA credit card, they must be 21 years old. Even though you can apply for a credit card at 21, your child must have a source of income to qualify — and usually, a monthly parent allowance does not count. This is to protect your child from debt.

What is the Best Age?

So when is the best age to get a credit card? It really depends on spending habits and lifestyle. The “best” age is the age when your child can responsibly use a credit card. Basically, they must be able to pay off the balance in full each month without forgetting about their other financial responsibilities. It is essential to start building credit early but not at the expense of accrued interest and late-payment fees. It is necessary to have an income to pay off the credit card bill each month. The goal is to have enough money to cover your bills, expenses, and still put some money away for saving. Young adults typically have limited credit history and income, so their options are limited. Look for a card that has low annual fees, because this will help your child build credit affordably.

How to Prepare Your Child

Instead of waiting for the right age, you can be proactive by raising your child financially literate. We have some helpful tips to prepare your child for financial responsibilities.

• Sign up for Banzai. It is a free, online financial literacy program for students of all ages.
• Get a prepaid card. Load your child’s budget on a prepaid card. This will show them the importance of managing money — show them online banking tools so they can get the whole picture.
• Provide your child’s cash allowance over longer intervals. This will help them to learn how to budget.
• Progressing to a checking account will help your child with writing checks and avoiding overdrafts.
• Open a credit card with a guardian co-applicant.

DEXSTA | Credit Cards

At DEXSTA we offer VISA credit cards with low competitive rates, with no junk fees. Stop in or visit us online to discover our credit card options.