I have read a very interesting article online and this will serve as my guide in case my teenage daughter will be using a credit card.

As early as when your child is in Middle School. At this age children are usually ready to take more responsibility for budgeting and spending. By letting them understand their spending limit, this is already a step for them to learn how to control credit spending.

And when the child will be in high school try to help him open a checking account, teaching him to learn how to write checks, reconcile a bank statement, avoid overdrafts and how to deal with bank fees are very important for him with regards to money management. If he is already familiar with the working of a bank account, you can consider letting him apply for a credit card.

His best options would be a debit card that has a MastCard or Visa logo will enable him to make withdrawal at ATMs but can be used too like a credit card. This difference is that the charge is deducted directly from the balance of the account.

This will serve as his training ground and at the same time limiting potential damage in case he tends to overspend.
Another option is a prepaid credit cars like Visa Buxx or Citibanks Citi Cash Card will allow parents to set spending limits and monitor when their children are spending money through monthly statements and internet accounts that show daily transactions. The parent will be able to transfer money from their own checking accounts to the card for a small transaction fee and the card can be used like any other credit card to buy.

If your child will be in college he has learned the basics then I think he will be able to be responsible enough and have a credit card on his own and build himself a good credit history.

Good question!

I actually have no credit at all, and being 21 I figured it's time to get some. My mom informed me that most banks/credit unions have credit cards available that have an applied spending limit. For example, $500 spending limit, and it needs to be paid off in full by a certain date. Same thing as a real credit card, right? This way the limit can be set, for as little as $100-$200 dollars, so it doesn't allow the teen or young adult to go crazy, but gives them a sense of how to try and use it wisely, and how to pay it off when needed, in order to build credit and a sense of responsibility with their money.

I feel as soon as a teen hits 16, and maybe even 14 they could start having a credit card, HOWEVER I feel an important part is the teens maturity, same thing for a young adult, if they are frivolous and irresponsible, then don't let them have one, but if they show they are hard working, responsible, and a, for the most part, do gooder then it's worth a shot!

Hope this helps!!

Some things that really helped me build my credit was having a phone bill in my own name and paying it before the due date every month. I think one of the keys to building a good credit score, is having some sort of utility or necessity responsibility and paying the bills each and every month before the due date.

You can also consider getting him a small personal loan. You could co-sign for the loan and have him make the payments. Again, a successful key to building credit is by making payments on time and it helps more to pay before the due date.

He should also have his own checking account and keep it in good standing. I don't recommend credit cards at all. I think they are a heap of trouble. However, they can help build credit when used properly. Make sure the balance is not near the limit and make timely, before due date payments. It is also important to pay more than the minimum payment. If the minimum payment is 25.00, send in at least 30.00. If he is not able to get a credit card, you can co-sign for one for him. I'd threaten him not to max it out.

Hi @ ginamichellesattic, your son is just at the appropriate age (18) to start building his credit score. This is the age that most creditors and lenders like doing business with because when most college students graduates, they tend to retain their old credit accounts and focus on making more money to pay their bills. So it is profitable for the creditors to build a strong relationship with the teenager at this early stage of his life, before he becomes a graduate.

At eighteen, your son can get a first-class credit card with good interest rates and favorable terms and can also have a free individual checking account. When you son opens this account, you have to make it clear that you expect him to manage his funds properly and also try to teach him how to be responsible with his credit and avoid debts.

To help your son build his credit score, encourage him to use his new credit card to shop for thing he really needs and follow him up to be sure he pays off the debts before the charges accumulate. But make sure his account always has a low balance and try not to pay off the whole balance each month, just let the balance roll over for like two months before it is paid.

Make your son understand that his credit card must not have a balance that is more than 50% of his available credit; let him aim for a 10% balance. Once your son understands the benefits of a good credit score, it would be a lot easier for him and for you too.
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