What companies allow credit cards under 18?

What companies allow credit cards under 18?

1. Greenlight

One popular option for teenagers to have a credit card is through Greenlight. The Greenlight debit card allows parents to monitor their child's spending habits, allocate funds, and even set up automatic allowances. While it is not a traditional credit card, it provides teenagers with a sense of financial independence and teaches them responsible money management.

2. American Express Serve

American Express offers pre-paid debit cards such as the American Express Serve card. This card allows teenagers to have their own card under the parent's account, allowing them to learn about money management in a controlled environment. It does not require a credit check or minimum age limit, making it accessible for teenagers.

3. Capital One

Capital One has a solution for teenagers known as Capital One MONEY, which is an online checking account designed for teens and their parents. Through the account, teenagers can have their own debit card and learn about financial responsibility. Capital One MONEY also offers tools and resources to educate teenagers on money management.

4. TD Bank

TD Bank offers a Teen Checking account with a free debit card that allows teenagers to make purchases and manage their own money. Parents can keep an eye on their child's spending habits through online and mobile banking. This account can potentially introduce teenagers to the world of banking and credit responsibly.

5. Wells Fargo

Wells Fargo offers the Clear Access Banking account for teenagers aged 13-17, which includes a debit card and access to online banking tools. This account allows teenagers to manage their money independently while parents maintain oversight through the joint account feature.

6. PayPal

PayPal offers a Student Account option that allows teenagers aged 13 and older to have their account under the guidance of a parent or legal guardian. Although it is not a credit card, it allows teenagers to make online purchases and learn how to manage their money within the confines of a digital wallet.

It is crucial for teenagers to understand the importance of responsible financial decisions from an early age. These companies offer opportunities for teenagers to learn about credit, budgeting, and money management while providing a safe environment for them to develop these skills.

In conclusion, while options for credit cards under the age of 18 may be limited, there are alternatives such as Greenlight, American Express Serve, Capital One MONEY, TD Bank, Wells Fargo, and PayPal that provide opportunities for teenagers to begin building credit and learning about financial responsibility. Remember, it is essential for parents or guardians to guide teenagers throughout this process to ensure they are making informed financial decisions.

Frequently Asked Questions

No, most credit card companies require applicants to be at least 18 years old to be eligible for a credit card. This is because minors are not legally bound by contracts and do not have the legal capacity to enter into credit agreements.

While it is generally difficult to find credit card companies that allow individuals under 18 to have a credit card, some financial institutions offer alternatives such as prepaid cards or joint cards with a parent or guardian.

A prepaid credit card is a type of card that can be loaded with funds in advance. It allows individuals, including those under 18, to make purchases and payments up to the amount that has been loaded onto the card. Prepaid cards do not require a credit check or a minimum age limit.

Yes, some credit card companies offer joint credit cards that allow a minor to share a credit card account with a parent or guardian. The primary account holder (parent or guardian) assumes the responsibility for the debt, but it provides an opportunity for the minor to learn about responsible credit card usage.

The age restrictions for authorized users on credit cards vary among different credit card companies. Some companies do not have specific age requirements, while others may require authorized users to be at least 13 or 16 years old. It is advisable to contact individual credit card companies to inquire about their age restrictions for authorized users.