Our son has had a savings account since he was 10 years old. He began working and has since opened a checking account and also received his 1st credit card. His father & I think it's okay for him to keep the Visa/Atm card but we don't think he should keep the credit card. Is this wrong? Any advice from your own experiences would be appreciated.
2006-11-19 13:20:45 · 18 answers · asked by AVA 4 in Business & Finance ➔ Credit
For clarification the Visa Debit card is a seperate card from the Student First Card which is issued from the Bank he opened. Apparently 17 isn't too young to be issued one since his father & I have had a long standing account with this particular financial institution.
2006-11-19 14:08:43 · update #1
YES 17 is too young. He will thank you later for not allowing him to have one. Even if he is a responsible young man, he should not have a credit card. There is nothing in life that HAS to be bought with credit. (Except house or car, and education loans) If he wants something, he should save the money rather than use a credit card. I know from experience. I wish I hadn't had credit cards.
2006-11-19 13:27:07 · answer #1 · answered by maria p 2 · 1⤊ 0⤋
I think the ATM/ Credit visa is a good learning experience for him. The credit card howevcer should go. The atm/credit card will help him learn some money management because it he will only be able to spend what he has and if he wants to buy anything else he can only use the money he earns.
He should definitely get rid of that credit card though. Although you might have to fight him for that
2006-11-19 13:50:55 · answer #2 · answered by kinev2010 3 · 1⤊ 0⤋
Lenders and creditors will not extend credit to anyone under the legal age of 18 or 21 in certain states. Much less if he doesn't work.
If he's a mature and smart kinda guy, that can handle the responsibility of having credit cards and paying them on time, then is OK to have it. If no, then take them before he gets into trouble and ruins his credit.
When he's in his mid 20's he might want to buy a car or a home and if he ruins his credit now, those opportunities will be harder for him to achieve in the future.
2006-11-19 16:50:48 · answer #3 · answered by lelekid4ever 5 · 0⤊ 0⤋
Legally minors cannot accrue unsecured debt - as in a credit card.
The Visa/ATM card you're talking about sounds like it's not a credit card, though. It's a debit card, or "check card". Any purchases made with it are backed by funds in the associated checking account.
As for whether or not he's too young to have it depends on your son. He may end up learning the value of a dollar the hard way when he overdraws his account.
2006-11-19 13:30:54 · answer #4 · answered by maradonxp 2 · 0⤊ 1⤋
Credit card debt for ages late-teens and college students is a major problem since we aren't educated on the working of a credit card. If you do allow him to have one, make sure he keeps up with thepayments and not over-spending which is what most college students and teens do when they recieve their first credit card
2006-11-19 13:30:03 · answer #5 · answered by Lexi 2 · 1⤊ 0⤋
I think credit and credit cards are great, but from my own experience as a college student and in my first few years of work trying to pay off the balances I accrued in college, I think it is probably best to try and wait until he is a little older. As mentioned above, until he is 18, I don't believe he is legally responsible for his own debts.
2006-11-19 13:35:14 · answer #6 · answered by Cappy 1 · 0⤊ 0⤋
Don't let him do it!! As responsible as he may seem, 17 is not old enough! I was a very responsible college freshmen who was always great with my money and savings and got in a ton of trouble with credit card debt so young. I always paid my minimum payment but it was nothing compared to the interest.....It was too overwhelming. Make him wait, he will thank you, believe me!!!! :)
2006-11-19 13:31:50 · answer #7 · answered by ELIZABETH M 1 · 1⤊ 0⤋
I know that it would have been wrong for me to have a credit card at 17.
2006-11-19 13:28:36 · answer #8 · answered by Jen 4 · 1⤊ 0⤋
it a prepaid unless one of you cosigned for it, If you did I would call the bank and keep the limit under $200. But don't close it If you keep one card with a long history It can really help his credit score.
2006-11-19 15:48:32 · answer #9 · answered by MICHELS2 2 · 0⤊ 0⤋
Legally you have to be 18 to obtain a credit card.
2006-11-19 14:15:58 · answer #10 · answered by Anonymous · 0⤊ 0⤋