In the United States, people under the age of 18 cannot legally enter into any contracts without a co-signer, but what about the increasing number of parents who are getting credit cards in their children’s names? Do minors really need access to credit cards?

It’s really a decision that is unique to each family. The most common reasons parents may decide to get a credit card in the name of their child include:

For emergencies Letting the child (probably a teenager) do their own school shopping Purchasing lunch and other necessities while out with friends For traveling (perhaps the child visits family members regularly)

When you are deciding whether or not to get your child a credit card, you’ll want to think about their age and maturity level. An elementary school student has very limited knowledge of what money is and how people get money. On the other hand, a teenager often has a better concept of how money is earned and what it’s used for, and could be taught appropriate use of a credit card.

Many parents like the idea of getting their teenager a credit card in order to start teaching them about financial responsibility. If this is your goal, then obviously you don’t want to hand the credit card to your child and let them have at it! You’ll need to spend some time discussing the reasons for the child to have a credit card, set limits, and discuss how payments will be made with the card. Will your teenager be responsible for paying back the charges made to the card? If so, be sure you and your child discuss this as well.

Alternatives to Credit Cards

What parents may want to consider instead of an actual interest-bearing credit card is a debit card. Setting your teenager up with a bank account with a debit card teaches them to spend money they actually have, rather than spending money and paying for it later. It is up to you how the bank account itself is funded, but some parents have set up “direct deposits” for their children’s allowance- which the child accesses using their debit card.

A “Charge Card” is another good option for the younger crowd. While they can be used to charge purchases, you cannot carry a balance from month to month on the card and must make the payment in full each month. This will teach your child responsibility for “charging”- provided you don’t just pay it off each month for them without some discussion or maybe requiring the teenager to use their part time job or babysitting money to make the payments.

If you decide you want to get a credit card, charge card, or debit card for your own child, be sure you look into the rules of such an account with the provider you want to go with. Some credit card companies restrict the “additional cards” to people of a minimum age; while others allow anyone of any age to be the secondary card holder. Same goes for charge cards. For debit card accounts, there are banks that offer youth checking or savings accounts with debit cards that are specifically geared to the needs of teenagers. That might be your best option for instilling financial responsibility in your children.

How to Use Credit Cards, Charge Cards or Debit Cards to Teach Financial Responsibility to Children

When getting a card issued in your child’s name, it’s important that you spend some time with the child teaching them the basics. Don’t take for granted that they will already have this knowledge. If the goal is to use the cards for teaching financial responsibility, here are some things to consider:

Teach your children not to lend their cards to friends for any reason Review bank statements together monthly and compare receipts with purchases made on the statement Teach children to pay more than the minimum payment – and teach them why that’s important! Discuss what a credit score is and how it affects people in life

The bad news first. You’ll have to make payments on time for at least six to 12 months.

Or, you can choose to do a balance transfer to another lower rate Credit Card. You should do a balance transfer only if you have enough available balance [credit] on the card that you are transferring the balance to. If you don’t have enough available balance on another card, transfer as much as you can without going over your credit limit.

For instance, if you have a $4,000 outstanding balance on one card at 32.24% interest and a card with $4,000 available credit with a balance transfer rate of 6.99%, transfer only $2,500 to the new card. This way, you will be saving thousands of dollars in interest keep your second card from being maxed out.

Look for balance transfer rates that stay low for the life of the balance transfer. Most promotional balance transfer offers usually last for only six to 15 months and then the interest rate jumps up to a mystery rate. But no worries, as long as the new rate is below the default rate, you’re better off. Remember, you’ll still be paying the interest first, principal second once the promotional balance transfer period is over.

The key is to not stay in default on your cards any longer than necessary. If you have to make your payments on time, even if that means making only the minimum payment.

Your ability to come out of Credit Card default is based on time – not money. If your Credit Card Company can keep you paying three times the money for six to 12 months longer, they will. Some people think that if they make a big enough monthly payment they will come out of default with their Credit Card. Not true. Get out of default as soon as possible.

If you have bad credit, you may be under the impression that you are not able to apply for a credit card. While it is true that you may be rejected from getting certain credit cards or loans, there are options available for those who have bad credit. Since a sizeable percentage of the population has bad credit, this has created a market which many banks and credit card companies have tapped into.

Your credit report is a reflection of your credit history, and it is very important when you need to apply for a car or mortgage. There may be situations where you will need a credit card to complete a certain transaction, and if you have bad credit you will run into problems. There are a number of options available for those with bad credit who want cards. Secured credit cards are one good option. A secured credit card allows you to deposit money into the account which you can then use.

Instead of borrowing money from the credit card company, you use your own money. You will not be allowed to go over the amount you place on the card. Despite this, you may have to pay the credit card company a fee in order to use their cards, and this is how their money is made. A secured credit card can be used to make any of the purchases you can make with a unsecured credit card. A prepaid debit card is another option that is used by people who have less than perfect credit.

If you are a student in college, an option may be available for you called a secured student credit card. These cards will allow students to begin building their credit while they’re still in school. Students who use these cards are prevented from going over their limit because they can only spend money which they’ve placed on the cards. It is important to remember that you won’t get the best deals or rates if your credit is poor. However, we live in an electronic age, and it is difficult to conduct many transactions without having either a debit or credit card.

Secured credit cards are a great way to allow you to make transactions while you continue to rebuild your credit. If you work hard to repair your credit, you won’t be in debt forever, and using these cards will allow you to easily make electronic transactions.

If you have bad credit, then you are probably wondering what kind of credit card you can and should get. Although they may not always be easy to find, credit cards for bad credit are available. And contrary to popular belief, even those with poor credit and no credit have options when it comes to credit cards. This article will explore those options so that you can get on to rebuilding your credit right away.

The first type of credit cards for bad credit are secured credit cards. These cards are available to almost anyone, even individuals with a record of bankruptcy or very bad credit. This is because these cards are of the prepay variety. When you are issued a secured credit card, you make your own deposit that becomes your credit line. And if you use your card wisely, you might be eligible for credit beyond your deposit.

The second type of credit cards for bad credit are high interest credit cards. These cards may not seem like a good idea, but for some people they can be. A high interest rate makes up for the fact that you are not trustworthy in the bank’s eyes. And if you carry a low balance on your card, you can start rebuilding or establishing credit without spending too much in interest.

Another option you have when it comes to credit cards for bad credit are low balance cards. These cards come with a low spending limit and are available from all the major card companies including visa and mastercard. Best of all, if you make your payments on time and don’t go over the spending limit, you may become eligible for a higher spending limit over time!

It is a fact of modern life that credit cards are an increasingly essential financial tool. There are many situations in which if you do not have a credit card, you will either be unable to pay for goods and services, or to take up special promotions. There are also countless more situations when having a credit card will simply be extremely convenient. Credit cards are also safer than carrying large amounts of cash around with you, especially when you travel.

Criteria

Well, first of all you should be over 18 years of age. You will also need a job or some form of regular income. These are then main criteria and if you can demonstrate them well, you will probably not have much trouble getting approval. You may have had a card in the past that you failed to pay or some other blemish on your credit report. If this is the case, you will find it more difficult to get a card.

Credit Rating

Your credit history plays a very significant role when it comes to assessing who will be approved for credit and who will not. It is based on personal information, your salary, if there have been defaults or court judgments awarded against you, and a host of other factors. They are all put into an equation that computes a personal score for you. Lenders will then decide whether or not to lend to you based on this score.

You should also be aware that many other companies will use your credit report also. It is not only credit companies, but also insurance companies and even employers, when looking at job applicants. This may seem surprising but the thing to remember is that you do not want to damage your credit report by failing to meet repayments.

Refused Application?

If you are finding it difficult to get approval for a credit card, you may consider seeking a co-signor. This is someone, usually a parent or close relative, who will guarantee the debt for you. They must understand the nature of the agreement, and if the situation arises whereby you are not able to make your repayments, they will become fully liable for the amount you have borrowed. It may also be a good incentive for you to repay it.

The final thing to remember is that if you have been turned down for a credit card, it may be an indication that you are not ready for one.

Pulaski Bank & Trust entered the credit card market towards the end of 1994. Since then, they have been offering the lowest interest rates on credit cards. In fact, the Pulaski Bank Visa/MasterCard is catered for consumers with a good credit score seeking for a low cost card and minimal perks.

Currently, the interest rate for the Pulaski Credit Card is fixed at 7.99% for new purchases, balances transfers and cash advances. This makes the card an attractive option for individuals who plan to bring forward a revolving balance. Although the annual fee of $35 is a significant cost, but upon closer inspection, you will realize that this is indeed a low and reasonable rate for credit cards with low interest rates.

In addition to the low interest rates on all transactions, this card also does not impose fees for balance transfers or cash advances. What’s more, there is also a six-month 0% introductory rate. The credit limit is set to a maximum of $15,000, with which the exact credit limit is dependent on an individual’s income amount.

Due to the overwhelming response to this card’s low interest rates, the application process can take quite a while, with 30 days being the average high. Also, more detail in personal information is requested by the Pulaski & Trust Bank for applications processing as they exercise greater diligence in their credit approval process.

On the flip side, this card does not provide much in terms of extra perks. But in view of the really low interest rates and charges, who would need all these perks when you can already save on finance costs?

To sum it up, this card would really be applicable for credit card users who plan to bring forward a large portion of their outstanding balances to the following month, or even to utilize a revolving balance. In fact, with the really low costs, the Pulaski Credit Card would also be ideal for those who are seeking for a credit card to transfer their balances to. Yes, in these cases, consumers need not look any further once they have found the Pulaski Credit Card.