III. How to Choose the Right Card for You
"The type of card you need will vary depending on a few different factors such as your age, credit history, and your current occupation."
Under 21 Years of Age
There are many reasons why a teen or young adult under the age of 21 might require a credit card. Their parents may want to teach them how to manage their finances and use a credit card responsibly. Or perhaps their child is traveling overseas with their foreign language class or other organization and needs a credit card in case of an emergency. Regardless of the reason, there are a few options available to those under 21 years of age.
1. Prepaid Credit Card
Many credit card companies offer prepaid credit cards for kids since the law requires you to be at least 18 years of age to get a traditional credit card. This works similarly to a debit card in that there is a set amount of funds available on the card to use until depleted. This type of card makes it easy for parents to load funds onto the card, for kids to use the card to make purchases wherever debit cards are accepted, and allows parents to monitor account activity and check the account balance with their children.
2. Add Your Child as an Authorized User on Your Existing Credit Card Account
Teaching a child how to manage money is an important aspect of parenting. If you want to add your child as an authorized user on your existing account, and your credit card company offers it, you can get some help from the company by setting built-in parental controls.