If the very idea of giving your under eighteen year old a credit card makes your heart palpitate you might want to do some research before the credit card offers come rolling in. The market for adults applying for and receiving credit cards is still a good one but more and more companies are tapping into the teenagers. The pros and cons of this idea are a source of many talks between the teenager and their parents. It can be a great learning tool before the child leaves home for the first time or it could become a nightmare. You as a responsible adult should sit down with the teenager and decide if this is a good idea for all concerned.

These cards will come with great introductory rates for about six months then revert to an APR that can span anywhere from 11.99% to 16.99% on most cards. While the introductory rate catches the eye of the student they may not fully understand what happens when the higher interest rate kicks in if they have a balance. The teenager will see the low rate and get pulled into something they may not be able to handle. This means that if the parent isn’t ready to take on more debt and you know your child isn’t ready for this responsibility you may want to reconsider letting them have a card. You as the parent will most likely have to be a consignor and then you will be the one to pay off the card if things get out of hand. It can be a wonderful educational tool that they won’t learn about in school but it does take monitoring on an adults part.

The credit cards for teens are obligated to report all the terms and conditions of these cards just as they are with cards for adults. You need to be ready to read over all of this agreement and explain any questions you teen may have regarding these terms. The world doesn’t need any more credit card debt that was run up irresponsibly so make a educated decision based on your teen and there maturity level.

In some states the credit card companies are allowed on the high school campus to give out pamphlets. Each individual school can have a say in whether they will allow such things. Many schools don’t think there is any educational worth if the company is just signing kids up for a credit card. You may want to look into your states policy on this.

You will still have to have a good credit history to get the teen credit card. Most of the offers do not have an annual fee and some offer very nice reward perks. Discover will give their Cash back Bonus to a teen credit card just as they do for an adult. Others will earn points if they use their cards for specific purchases such as restaurants, movie tickets or bookstores. Together with your teen you should review the pros and cons and see if this is a good fit.