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Old April 12th, 2018, 05:43 PM   #1
Beach_Blonde
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Default Credit Card at 16???

Not sure where to put this but this seems like a possible place. Anyway it would seem that I have the chance to get a credit card. I know I am young and it wouldn't entirely be my card but rather a shared card with my grandmother co-signing.

It seems like a smart move to start building my credit now but I am not entirely sure and I don't understand the technical aspects of this card yet. Like its a credit card but connected to a savings/holdings account i have to open with a certain amount of money already in it (i guess a down payment thing) but the payments come out of this savings account which i can add too as much as i want although it doesn't increase my cap (which isn't borrowing because it is already my money at that point)

p.s i know it sounds like a standard debit card that im talking about but its not. its not connected to any checking account and it has more money on it then what i would open the account with

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Old April 12th, 2018, 06:20 PM   #2
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Default Re: Credit Card at 16???

Better be careful. You'll buy stuff you don't ever need and you'll buy more stuff and it will get out of control
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Old April 12th, 2018, 06:29 PM   #3
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Default Re: Credit Card at 16???

So basically the card sounds like a generic debit account with what's called an overdraft. At least that's how I see it, but it could be that the banks do it differently in the UK. However, I've never heard of a credit account that requires you to link it to a savings, and then the money comes out of the savings. I've heard of like proof of assets be it liquid or not, or proof of wealth/a guarantor, for opening a credit account but not this type.
Otherwise, i have a credit card, I think it's great to start building a credit score early - if you know how to do it.
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Old April 14th, 2018, 06:23 AM   #4
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Default Re: Credit Card at 16???

Quote:
Originally Posted by Beach_Blonde View Post
Not sure where to put this but this seems like a possible place. Anyway it would seem that I have the chance to get a credit card. I know I am young and it wouldn't entirely be my card but rather a shared card with my grandmother co-signing.

It seems like a smart move to start building my credit now but I am not entirely sure and I don't understand the technical aspects of this card yet. Like its a credit card but connected to a savings/holdings account i have to open with a certain amount of money already in it (i guess a down payment thing) but the payments come out of this savings account which i can add too as much as i want although it doesn't increase my cap (which isn't borrowing because it is already my money at that point)

p.s i know it sounds like a standard debit card that im talking about but its not. its not connected to any checking account and it has more money on it then what i would open the account with

It sounds like a secured card, with monetary collateral, where the bank offers you a card on the condition of a co-signer, and an account opening.

Benefits for them are they get you as a new customer, and they minimize their risk by having access to your grandmotherís funds should you overspend.

I personally advise against this and think you should wait but you really should research the algorithms banks and credit bureaus use to build up your credit score.

From some quick research I did on YouTube you want to stay within 20% of your credit cardís available credit, meaning if your monthly spending cap is $500, you never want a billing statement for that credit card to exceed $100.

One youtuber I recommend is Beatthebush, he has a lot of good financial tips in all money management subjects.

Also do not use credit cards at gas pumps, itís like one of the highest rates and ways to get fraud on your credit card account.
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Old April 14th, 2018, 05:05 PM   #5
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Default Re: Credit Card at 16???

I use a debit card since I opened a bank account last year to put the money I made at my previous job. My parents also raised to be smart with my money and try to only buy what I need or will last a long time. So if you think you are responsible enough to get a credit card then by all means do it. Just remember if you make poor decisions right now it'll have a negative effect on your financial future, make sure you understand the responsibility of owning a credit card

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Old April 15th, 2018, 08:23 AM   #6
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Default Re: Credit Card at 16???

first: do you have a job to cover what you may spend?

personally I would start with just a debit card, then you can't overspend.

once you are used to that maybe in a few years upgrade to a secured debt card. the key to a credit card is paying it off in full every month before the due date otherwise the interest rate is crazy (and also means you couldn't afford what you bought in the first place)
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Old April 15th, 2018, 08:29 AM   #7
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Default Re: Credit Card at 16???

I have both a regular credit card and a debit card attached to my own checking account. What you are describing sounds like a secured card, with monetary collateral, where the bank offers you a card on the condition of a co-signer, and an account opening.

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Old April 15th, 2018, 11:59 AM   #8
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Default Re: Credit Card at 16???

I use just a debit card since I turned 14. My Dad thought it would be be a good idea. And it's strictly based on my allowance and other incomes. Worked for me ever since.





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Old April 15th, 2018, 04:14 PM   #9
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Default Re: Credit Card at 16???

I have a debit card that draws money from my bank account

Idk where you live but where I live kids under 18 canít legally have debit card credit cards or even bank accounts in their own name. It needs to be in someone elseís name with the kid. And the adult ďokísĒ a card in the kids name. Basically making the adult totally responsible for all the transactions

To establish credit you canít do that till your 18 anyways

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Old April 16th, 2018, 12:59 PM   #10
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Default Re: Credit Card at 16???

What you're describing sounds much more like a debit card rather than a credit card. Debit cards are linked to a checking account and will only pull money you have saved in that account. Credit Cards are the bank's money and you can spend up to a certain limit and pay it back later. My Discover card, for example, has a credit line of $2500 that I can use almost anywhere, but must be paid back to Discover eventually. My debit card has $500 on it right now, and I could spend all that $500 without paying interest or paying it back to my bank. Debit is like digital cash, whereas credit is a money lending service.

Do you have a regular source of income? Paying back credit debt is something even adults with full time jobs can struggle to do. Just be careful about getting more than what you can bargain for. I have 3 credit cards, a car payment, phone lease, and a debit account. It's a lot to manage and if something happens in your life and you loose your job, you can be in for a rude awakening. I was young and naive and thought I was immune to debt, but it's sucked me right in and now my credit score is fucked.

You're too young for a credit card, in my opinion. But setting up a debit account and practicing good spending and saving habits will set you up well for the future.
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Old April 24th, 2018, 04:16 PM   #11
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Default Re: Credit Card at 16???

I've had a debit card since I was about 14. My parents don't care about how I spend my money, as it is my own responsibility
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Old April 24th, 2018, 04:21 PM   #12
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Default Re: Credit Card at 16???

I have my own Debit Card to my Allowance Account, Not to my "Savings" account.

I do have a "Emergency" Credit Card that is Dad's But can only use it in a Life/Death Emergency. He gets a Text the second I use it.
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Old April 24th, 2018, 09:04 PM   #13
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Default Re: Credit Card at 16???

Id love to have a credit card!
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Old April 24th, 2018, 11:59 PM   #14
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Default Re: Credit Card at 16???

If I want something and I present my need for it to dad he will buy it. So I don't really need a card
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Old April 25th, 2018, 12:07 AM   #15
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Default Re: Credit Card at 16???

Eh.

My grandfather is in his 60s and he has a really good credit score (800+). He never bought cars out of dealerships and rented houses and apartments in addition to paying everything on time.

He managed his finances on his own and did it well, considering he doesn't make a lot of money (he's a bus driver).

I dunno, credit cards are too tempting.

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Old April 25th, 2018, 02:11 AM   #16
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Default Re: Credit Card at 16???

Quote:
Originally Posted by Just JT View Post
Idk where you live but where I live kids under 18 can’t legally have debit card credit cards or even bank accounts in their own name.

If your parents agree, you can have your own debit card at 16 or even 14. Depends on the bank.



Quote:
Originally Posted by faveable.com

Can a kid have a prepaid debit card?

If your kid is at least 13 years old then yeah, you can probably add them to your prepaid account as an authorized user. Younger kids who want their own card might have to stick with Visa gift cards rather than applying for a long-term prepaid account.

Kids usually can’t get their own prepaid bank account until they turn 18, but the rules vary by company.



In my case, my dad decided to apply for a second, but prepaid-based, bank account combined with a debit card, which he handed me over. Since then I was into online-banking and paying with plastic.

My dad said, from now on he would transfer my monthly "salary" (job: Son) to the new bank account. That was more convenient for him than constantly having to withdraw cash from the ATM. He barely pay cash when buying stuff or even carries some cash in his wallet.





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Old April 26th, 2018, 05:45 AM   #17
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Default Re: Credit Card at 16???

I have a debit card. I mistrust banks here enough regarding loans and credits to get one.
Also I dislike banks in general.


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Old April 28th, 2018, 04:24 PM   #18
Just JT
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Default Re: Credit Card at 16???

[QUOTE=lliam;3663149]If your parents agree, you can have your own debit card at 16 or even 14. Depends on the bank.

Pretty much what I was saying in the rest of my post

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Old April 28th, 2018, 06:16 PM   #19
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Default Re: Credit Card at 16???

I have a debit card and a credit card, co-signed with my mom. I honestly haven't used it much, but I think it's a good idea to get used to it.
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Old May 6th, 2018, 10:32 PM   #20
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Default Re: Credit Card at 16???

Let me rain some advice on all of you even if your post is a few years old.
Don't spent money you don't have!
When I go to the store and guy some Mountain Dew with cash I earned from washing my Dad's car it hurts me because I put my hard work into that for the Mountain Dew. When you use a credit card you don't feel that, and you statistically over spend. Starting with a debit card is the best thing anyone can do because it teaches you self control, how to spend your money wisely and invest it. You can also not over spend and there is a fee with some cards if you over spend.
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