Check the teen’s credit report together.
It is not a secret that you can simply do this online. At first there should be no credit. Parents should explain that the use of the credit card will be reported to the major credit bureaus, thus any late payment will stay on the credit report for seven years. Teens should know and understand that credit reports are very important and they affect the cost of loans, mortgages, auto insurance as well as it impacts the decision of a potential employer or a landlord.
Parents can add a teen to their cards as an authorized user.
It can be useful to open a new account together with a teen. Just use a low credit limit and set up an online access to monitor spending.
Parents can consider student credit cards.
They are now offered by the major card issuers. They are provided with rewards including free FICO scores.
Secure credit card can be a good alternative.
These cards require a savings deposit in the bank that issues a card. So the credit limit is actually the amount of the deposit. Thus, teens can start building a good credit report while using the card regularly as well as paying on time and in full, of course.
There is a special card that is built for parents and teens – VisaBuxx.
It’s linked to the account of the parent and both (teens and parents) can monitor all the transactions online. Besides, this credit card can be automatically refilled if there is no money.