Your child has grown up and intends to get his first credit card then you must take the following things in consideration so that he or she doesn’t burn his fingers in the process.
Keep the following things in mind before shopping for the first ever credit card for your child:
What is the reason behind purchasing credit card for your child?
Spending habits of the child
Risk tolerance level
While shopping for the first ever credit card for your child check out for the following things:
Fees
What kind of fees is charged by the card company? Does it include annual fees and other fees such as international transactions, cash advances, charging over the credit limit, balance transfers or late payments?
Do explain all such charges to your child before handling over the card to him.
Introductory rates versus the real rate
The introductory rates change after a few months and the real rates take over and I must tell you that these credit card rates are not very attractive therefore a child needs to be explained about before he lands in some kind of shock.
Grace Period
What is the grace period offered by card company to its customers, the longer the better and this aspect must be explained to your child to avoid any kind of penalties.
Rewards programs
Also check out any kind of reward programs offered by companies which your child will be able to benefit immensely from it.
Last but not the least ask your child to pay off balance in full to keep their experience with credit cards a happy one.
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