The short answer to the question “How old do I have to be to get a credit card?” is 21. However, like most things in life, there are exceptions to that rule. Those exceptions have important ramifications for parents of teenagers.

On February 22, 2010 the CARD Act of 2009 went into effect. The Act was designed in response to the credit crisis that, coupled with the collapse of the housing market, helped push the nation into a recession. Proponents of the CARD Act gained popular support for the Act by emphasizing that the Act was designed to protect consumers. The CARD Act seeks to limit powers and practices of credit issuing companies.

One consumer group specifically targeted by the CARD Act for more protection is that of young people. Restrictions placed on credit card issuers include raising the age from 18 (in most places) to 21 to qualify for credit cards and limiting the access credit card companies have to college campuses in order to recruit students to apply for cards. The

Read more…

Part of the reason why so many adults get overwhelmed by credit card debt is because they never learned how to use them responsibly when they were younger. Now, there’s a credit card which helps young people learn how to build strong credit card habits.

The PAYjr Visa Buxx Card is basically a prepaid card which allows money to be loaded onto the card for spending purposes. But this card is structured so that teens can actually “earn” that money.

The card’s account is set up so that money can be transferred from a parent’s bank account to the PAYjr card whenever certain goals are met (like completing chores, getting good grades, etc.). Cardholders and their parents can go online to see schedules or calendars which are designed to help them monitor the teens’ progress. And both parents and kids can receive text or email alerts when the card is used, making it easier to track balances and account activity. Ideally, th

Read more…