Kids and Credit Cards
I think there is a heck of alot of wisdom in advising your children to avoid credit cards up until the age of 20. It takes time to understand the worth of money, how to earn it and how to manage it. Youngsters given credit cards, miss out on these important principals.
However, there certainly is some sense in your offspring getting onto the credit ladder at some point and here’s why:
1. Building up a good credit history can be important for the future. Particularly when you come to obtaining a mortgage.
2. According to Javelin Strategy & Research, 8.4 million Americans became victims of identity fraud. Most cards now offer high levels of fraud protection - particularly important in light of increasing numbers of us shopping online.
3. If you follow the principal of taking on a card with no annual fee and low APR then credit can become a useful tool in your everyday life. Particularly, if you ensure that the balance is always paid off at the end of the month, or at least towards the end of a 0% introduction period.
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