Prepaid Credit Cards For Teenagers - A Biref Intro
A prepaid credit card account is opened by depositing money into that account, much in the same way you would make a deposit to open a checking or savings account. Once you have money in your account, you're issued a prepaid credit card that can be used anywhere one would use a regular credit card. The best part of the prepaid credit card is that you can charge to your heart's content and you won't be in debt. The money is yours and once it's gone, you can't spend any more until you make another deposit. There are no bills and no interest charges. It's the same principle as using a debit card linked to a savings or checking account.
Prepaid Credit Cards for Teenagers
By [http://ezinearticles.com/?expert=Margaret_Tye]Margaret Tye
Have you been wondering how you can teach your teen to behave responsibly when using a credit card? No parent wants to see their child get into financial difficulty running up debts that they cannot afford to pay off, yet many of us know from experience how easy it is to succumb to the temptation of thinking that we can afford to buy now and pay later. Of course we learn through bitter experience that this is not always the case and we don't want our children to make the same mistake.One way of helping them learn to manage their finances is to give them a prepaid credit card. Technically of course, this is a debit not a credit card as the card is pre-loaded with cash.
There are a number of reasons why you may decide to get your teen a prepaid card. It may be that you simply want them to learn how to manage their own money and by topping up their card on a monthly basis they will hopefully learn how to budget. Your teenager may be going to university and you want to be sure that they have sufficient funds when they need it, for example a quick phone call to you means that you can top up the card in an emergency . Or your teen may be off on a gap year and you can rest easy knowing that funds will reach him quickly if needed.
There are several advantages to a prepaid credit card.
There are no credit tests needed to obtain one, anybody can apply.
It is impossible to run into debt, only the amount credited to the card can be spent.
If the card is stolen only the outstanding cash on it could be lost, although most cards can be blocked in these circumstances.
The disadvantages are minor, normally there is an application fee when getting a card.
Many cards charge a monthly fee, but this is could be cheaper than a teenager running up interest charges on an ordinary card!
Most cards allow withdrawals from an ATM machine, but charge a fee. These charges vary from company to company and it is worth shopping around to find the best buy to suit your circumstances.
There are a lot of cards now being offered and you should read all the terms and conditions carefully to ensure that you are getting what you require. Check there is no delay in being able to use the card as soon as it has been topped up, that you can withdraw from an ATM machine or use online. Well known names offering a Mastercard will probably cover all your needs. Be careful that you are not buying a non-reloadable gift card.
If you choose carefully and explain to your child that the money you will be depositing
on the card is to cover a certain period of time and they must try to budget, hopefully they will begin to learn how to do just that!
This article is for information and the author accepts no liability for any action taken.
Margaret Tye runs the [http://www.fromtots2teens.com/pre-paidcreditcards.html]From Tots 2 Teens - Pre-Paid Credit Cards website
Article Source: http://EzineArticles.com/?expert=Margaret_Tye http://EzineArticles.com/?Prepaid-Credit-Cards-for-Teenagers&id=899934
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countless offers to find the right credit card, you're not alone. Knowing which card to apply for can be difficult, especially if you have a poor credit history. At
iCreditCardNow.com, we make the process simple. You just select your approximate credit rating, and we'll provide a list of offers that fit your needs. We work with all the top brands to give you the
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Teen Credit Card Basics
By [http://ezinearticles.com/?expert=Gary_Gresham]Gary Gresham
Teen credit card basics will help you raise money smart kids. Knowing how to handle credit is important and not something they are likely to learn in school. If you teach your children smart ways to manage credit, it will help to ensure they get the right start and don't wind up with bad habits.
Credit is a necessity in today's world and teaching your teens credit card basics will help to make it easier for them to rent their first apartment, land good jobs, get better rates on insurance and buy homes.
Teaching credit basics is not something you can put off till they reach college. The statistics are:
One in three high school seniors use credit cards and half are in their own names.
Seventy-five percent of college students have credit cards and carry a balance of $3200.
The bankruptcy rate for those under 25 years old is more than 5%.
Teens are usually ready to learn about spending and budgeting by the start of middle school. Giving them a certain amount to buy school clothes each year and telling them to spend it as they chose or save some to buy later will help teach them how to control their spending.
By high school, they should probably have a checking account of their own. This will teach them to write checks, reconcile bank statements and avoid bouncing checks. These are good lessons in money management. Once they master the checking account, it may time to consider a plastic card.
A debt card may be a good place to start. This will allow them to practice without the potential damage of a real credit card. This card charge is deducted directly from their checking account balance.
A prepaid credit card for teens allows parents to pre-set spending limits and monitor where their teens are spending money. The parents transfer their money to the card and it can then be used like any other credit card to buy things.
A low-limit credit card can also be used. Parents usually co-sign for an account with their teen and can set a low credit limit of $200 to $300.
College students by this time should know the credit basics and should apply for a credit card in their own name, without your co-signing on it. Credit is easier to obtain while the student is still in school.
It is essential that teens are taught the importance of a good credit rating and the need to pay bills on time. They need to know that everybody needs to develop a good credit history.
With help and guidance from parents and teen credit card basics you can raise money smart kids to grow up to be money smart adults.
Copyright © 2005 Credit Repair Facts.com All Rights Reserved.
This article is supplied by http://www.credit-repair-facts.com where you will find credit information, debt elimination programs and informative articles that give you the knowledge to correct your own credit and credit report. For more credit related articles like these go to: http://www.credit-repair-facts.com/articles_1.html
Article Source: http://EzineArticles.com/?expert=Gary_Gresham http://EzineArticles.com/?Teen-Credit-Card-Basics&id=78069
Credit is a necessity in today's world and teaching your teens credit card basics will help to make it easier for them to rent their first apartment, land good jobs, get better rates on insurance and buy homes.
Teaching credit basics is not something you can put off till they reach college. The statistics are:
One in three high school seniors use credit cards and half are in their own names.
Seventy-five percent of college students have credit cards and carry a balance of $3200.
The bankruptcy rate for those under 25 years old is more than 5%.
Teens are usually ready to learn about spending and budgeting by the start of middle school. Giving them a certain amount to buy school clothes each year and telling them to spend it as they chose or save some to buy later will help teach them how to control their spending.
By high school, they should probably have a checking account of their own. This will teach them to write checks, reconcile bank statements and avoid bouncing checks. These are good lessons in money management. Once they master the checking account, it may time to consider a plastic card.
A debt card may be a good place to start. This will allow them to practice without the potential damage of a real credit card. This card charge is deducted directly from their checking account balance.
A prepaid credit card for teens allows parents to pre-set spending limits and monitor where their teens are spending money. The parents transfer their money to the card and it can then be used like any other credit card to buy things.
A low-limit credit card can also be used. Parents usually co-sign for an account with their teen and can set a low credit limit of $200 to $300.
College students by this time should know the credit basics and should apply for a credit card in their own name, without your co-signing on it. Credit is easier to obtain while the student is still in school.
It is essential that teens are taught the importance of a good credit rating and the need to pay bills on time. They need to know that everybody needs to develop a good credit history.
With help and guidance from parents and teen credit card basics you can raise money smart kids to grow up to be money smart adults.
Copyright © 2005 Credit Repair Facts.com All Rights Reserved.
This article is supplied by http://www.credit-repair-facts.com where you will find credit information, debt elimination programs and informative articles that give you the knowledge to correct your own credit and credit report. For more credit related articles like these go to: http://www.credit-repair-facts.com/articles_1.html
Article Source: http://EzineArticles.com/?expert=Gary_Gresham http://EzineArticles.com/?Teen-Credit-Card-Basics&id=78069
Prepaid Credit Card For Teens-How to Find the Best Prepaid Card to Use As a Teenager
by William Perry
When it comes to prepaid credit card for teens, there are certainly many of these available. The best thing about them is that anybody can get them, regardless of their past history.
If you are a teen, you likely don't have much of a credit history to go on, but this won't hurt you a bit when purchasing prepaid credit cards.
Why would you want one of these? Why not just use cash? Quite simply, these are much simpler to carry around as opposed to cash, and a lot simpler to use when making a purchase. you don't have to manually count out the dollar bills in your hand, worry about change, etc.
Of course, there is the matter of buying things online, which is becoming more popular all the time. Obviously, you can't use cash fro this, so prepaid credit cards for teens if your only option here, if you don't have a regular credit card.
Where can you find prepaid credit cards for tens? You can do so online, but I'd actually recommend you just haul it down to your local right aid or Wal-Mart, as you don't have to wait until the card is shipping to you-just buy it right there, and you can immediately start using it.
However, one word of caution-the bad part about prepaid credit cads for teens (or anybody, for that mater) is that they don't allow you to build up credit, as a regular credit card would.
Therefore, the only real benefit you get is the ease of carrying them around. in the future, you will very likely want to take out a mortgage or loan, and when you don't have a credit history, you will need up paying more.
Therefore, assuming you are a responsible individual, I'd highly recommend you get a real credit card and get used to using these, as they not only will help you build up your credit history, but also get you into the habit of managing your money at a young age, which will definitely serve you down the road.
Therefore, if at all possible, avoid prepaid credit cads for teens, and look to get a real one, as you can start building up credit immediately.
About the Author:
For more info on finding a prepaid credit card for teens, check out http://www.internetcreditinfo.com. Also, if you've ever wondered where can I get a free copy of my credit report, this is the spot.
If you are a teen, you likely don't have much of a credit history to go on, but this won't hurt you a bit when purchasing prepaid credit cards.
Why would you want one of these? Why not just use cash? Quite simply, these are much simpler to carry around as opposed to cash, and a lot simpler to use when making a purchase. you don't have to manually count out the dollar bills in your hand, worry about change, etc.
Of course, there is the matter of buying things online, which is becoming more popular all the time. Obviously, you can't use cash fro this, so prepaid credit cards for teens if your only option here, if you don't have a regular credit card.
Where can you find prepaid credit cards for tens? You can do so online, but I'd actually recommend you just haul it down to your local right aid or Wal-Mart, as you don't have to wait until the card is shipping to you-just buy it right there, and you can immediately start using it.
However, one word of caution-the bad part about prepaid credit cads for teens (or anybody, for that mater) is that they don't allow you to build up credit, as a regular credit card would.
Therefore, the only real benefit you get is the ease of carrying them around. in the future, you will very likely want to take out a mortgage or loan, and when you don't have a credit history, you will need up paying more.
Therefore, assuming you are a responsible individual, I'd highly recommend you get a real credit card and get used to using these, as they not only will help you build up your credit history, but also get you into the habit of managing your money at a young age, which will definitely serve you down the road.
Therefore, if at all possible, avoid prepaid credit cads for teens, and look to get a real one, as you can start building up credit immediately.
About the Author:
For more info on finding a prepaid credit card for teens, check out http://www.internetcreditinfo.com. Also, if you've ever wondered where can I get a free copy of my credit report, this is the spot.
