Are you a high school student under 18 who's curious about the world of credit cards and eager to start building your credit history? Good for you, money-smart teenager! In this article, we'll dive into the exciting world of credit cards for high schoolers under 18, explore the benefits of having one, and discover the best options available for you. Get ready to level up your personal finance game and set the foundation for a bright financial future!
Credit Cards For High School Students Under 18 Table of Contents
Why High School Students Should Consider Credit Cards
Getting an early start is crucial for personal finance success. For high school students under 18, having a credit card is not just about the convenience of swiping to pay, it's also about learning important money management skills and building your credit history. Here are some benefits of having a credit card at a young age:
- Establishing credit history: Having a good credit history is essential for several aspects of your financial life, from getting approved for loans to renting an apartment. By responsibly using a credit card as a teenager, you're laying the foundation for a solid credit score later in life.
- Learning budgeting and money management: Using a credit card requires discipline and organization. As a high school student with a credit card, you'll become more conscious of your spending habits and develop budgeting skills that will last a lifetime.
- Earning rewards and cashback: Many credit cards offer rewards and cashback on your purchases, which can save you money and provide added value for your spending.
Understanding The Legal Aspects
Before getting your hands on a credit card as a high school student, it's important to understand that, legally, young individuals under 18 cannot open a credit account on their own. So, how can you still reap the benefits of a credit card at this age? Here are two options:
Authorized User
As an authorized user, you'll be added to an existing credit card account of a responsible adult, such as a parent or guardian. This means that you can use their credit card, and the primary account holder is responsible for the payments. This option helps you build credit since the account's activity will be reported to the credit bureaus under your name too.
Secured Credit Card
A secured credit card requires a cash deposit that serves as collateral in case you fail to make payments. While many secured credit cards still require applicants to be 18 years old, there are some banks and credit unions willing to issue secured credit cards to minors if a parent or guardian is a co-signer.
Credit Cards For High School Students Under 18 Example:
Let's say Sarah is a 17-year-old high school student who wants to open a credit card to start building her credit history. She can either ask her parents to add her as an authorized user or open a secured credit card with one of her parents as a co-signer.
If Sarah chooses the authorized user route, her parents might add her to their existing cashback credit card. She'll have access to the card, making purchases and earning cashback that her parents can share with her. Since Sarah's parents have a good credit score, her credit history will benefit too.
On the other hand, Sarah and her mom could open a secured credit card with a low-interest rate. They'd need to make a deposit to secure the card, and using it responsibly will help build credit for both of them.
There you have it, a complete guide to credit cards for high school students under 18. By starting early with responsible credit card use, you're setting the stage for a bright and financially-secure future. Now that you're equipped with this knowledge, feel free to share this article with your fellow students so they too can embark on this exciting personal finance journey. And don't forget to explore other guides on Flik Eco to continue mastering your financial skills!
