That said, don’t sign up for the first card you see. There are many credit and debit cards for kids, and it can be hard to know which one is best.<\/p>\n\n\n\n
Want to figure out not just the best credit card for kids but the best option for your kid, or if a debit card might be better? Keep reading for a detailed review of popular cards, how they work, why you might want to get one for your child, and which ones are highly rated and why.<\/p>\n\n\n\n
What if They\u2019re Not Ready for a Credit Card?<\/strong><\/h2>\n\n\n\nFor most kids, a kid debit card is be an easier starting point. Check out our top 3 debit cards for kids: <\/p>\n\n\n\nCard <\/div><\/td>Requirements<\/div><\/td>Notable features <\/div><\/td>Fees<\/div><\/td><\/tr>Acorns Early <\/a><\/div><\/td>Parental permission, ages six to 18<\/div><\/td>- Educational resources<\/li>
- Savings goals.<\/li>
- Parental controls <\/li>
- Budgeting for charitable giving.<\/li><\/ul><\/div><\/td>
- $8.00\/month (Basic plan) and $12.00\/month (Pro plan) $1.50 fee for each ATM withdrawal $4.99 fee to replace a card with a different design<\/li><\/ul><\/div><\/td><\/tr>
Copper Banking <\/a><\/div><\/td>Parental permission, no age requirement<\/div><\/td>- Parental controls<\/li>
- Limits on ATM withdrawals <\/li>
- Automatically managed investments <\/li>
- Rewards on savings balances up to $5,000<\/li><\/ul><\/div><\/td>
\u00a0$4.95\/month (Basic plan) and $7.95\/month (Pro plan)<\/div><\/td><\/tr>For young adults: Chime Visa Debit Card<\/a><\/div><\/td>Must be 18 to open (great for college-bound teens)<\/div><\/td>- Great first debit card for young adult <\/li>
- No monthly fees<\/li>
- No maintenance fees<\/li>
- 60K+ no-fee ATMs<\/li>
- Real-time transaction alerts<\/li><\/ul><\/div><\/td>
No monthly fees<\/div><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\nBut before we get into more detail, let’s figure out once and for all if a credit card or debit card is right for your kid. Then, I’ll do a deep dive into the best options in both categories.<\/p>\n\n\n\n
Credit Card For Kids: How Do They Work?<\/strong><\/h2>\n\n\n\nWith record-high credit card debt for grownups, there\u2019s a strong argument for educating children from an early age on how credit works and why debt hurts. <\/p>\n\n\n\n
So, how do credit cards work for kids?<\/p>\n\n\n\n
\n- Kids under 18 can\u2019t get their own credit cards unless added as an authorized users to their guardian\u2019s account. <\/li>\n\n\n\n
- Some card issuers state a minimum age of 13 to 16 while some don\u2019t give a minimum age at all.<\/li>\n\n\n\n
- A credit card for a child who is an authorized user works much the same as a credit card for an adult. The child shares the spending limit with the primary cardholder, and they can start to build credit. <\/li>\n<\/ul>\n\n\n\n
For most children, a credit card is a big step \u2014 one that’s better taken in their late teen years. If that’s the case, what are your options?<\/p>\n\n\n\n
Credit Card for Kids: Why Get One?<\/strong><\/h2>\n\n\n\n![\"Pexels](\"https:\/\/www.wallstreetzen.com\/blog\/wp-content\/uploads\/2023\/06\/pexels-kindel-media-7007179.png\")
<\/figure><\/div>\n\n\nIn our case, we gave our child a reloadable debit card so that he had access to money while in a foreign country. It was a safer option.<\/p>\n\n\n\n
Credit cards are a little riskier because there are fewer controls over spending. For older teens, however, learning how to use a credit card responsibly is a passage to sound financial management in adulthood, and that\u2019s something we all need.<\/p>\n\n\n\n
Bottom line: <\/strong>Debit cards are best for younger kids while older teens could learn more from the responsible use of a credit card.<\/p>\n\n\n\nPros and Cons of Giving Your Child a Credit Card<\/strong><\/p>\n\n\n\nPros of Giving Your Child a Credit Card<\/strong><\/div><\/td>Cons of Giving Your Child a Credit Card<\/strong><\/div><\/td><\/tr>Education into how credit cards work<\/div><\/td>Few limits on spending<\/div><\/td><\/tr>Build a credit profile early<\/div><\/td>You and your child\u2019s credit suffer if you fall behind on payments<\/div><\/td><\/tr>Access to cash; particularly useful in an emergency<\/div><\/td>Risk of theft and fraud<\/div><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\nBest Credit Card for Kids: 3 Top Picks<\/strong><\/h2>\n\n\n\nOur advice for younger kids is to start them off with a debit card because it\u2019s simpler and safer. However, credit cards for teens are a great way to expose them, and here are four top picks.<\/p>\n\n\n\n
1. Step Visa Card – Best for Teenagers Who Still Need Some Limits <\/strong><\/h2>\n\n\n\n\n- Overall rating: \u2b50\u2b50\u2b50<\/li>\n\n\n\n
- Requirements: Parental approval but no age requirement<\/li>\n\n\n\n
- APR: n\/a<\/li>\n\n\n\n
- Rewards: n\/a<\/li>\n\n\n\n
- Annual fee: n\/a<\/li>\n\n\n\n
- Features: Bank account, credit\/debit card with spending limit, mobile app<\/li>\n<\/ul>\n\n\n\n
The Step Visa card offers a complete mobile banking experience for teens. It\u2019s a great first credit card for teens, and the Step app is a must for the mobile generation. The Step Visa and bank account are free with no fees and no minimum deposit.<\/p>\n\n\n
\n![\"Pasted](\"https:\/\/www.wallstreetzen.com\/blog\/wp-content\/uploads\/2023\/06\/pasted-image-0-24.png\")
<\/figure><\/div>\n\n\nSpending Limits<\/strong><\/h4>\n\n\n\nThe cardholder can only spend up to the amount that is in the step account, providing a built-in spending limit. <\/p>\n\n\n\n
Parents can add funds to the Step account from another bank account, a debit card, Cash App, or PayPal. They can also monitor their child\u2019s spending and freeze a child\u2019s card.<\/p>\n\n\n\n
Building Credit<\/strong><\/h4>\n\n\n\nParents don\u2019t have to open a separate checking or savings account for their teenager or add them as an authorized user to their own credit cards, so teens can build credit independently.<\/p>\n\n\n\n
Who It\u2019s Good For<\/strong><\/h4>\n\n\n\nThe Step Visa card is great for teens who want to build credit yet need some controls in place for spending.<\/p>\n\n\n\n
Who It\u2019s Not Good For<\/strong><\/h4>\n\n\n\nThis is not a great option for teens with significant savings because no interest is paid on the balance. Going with a debit card from a bank that offers a high-yield savings account is a better option.<\/p>\n\n\n
\n \n
Card <\/div><\/td> Requirements<\/div><\/td> Notable features <\/div><\/td> Fees<\/div><\/td><\/tr> Acorns Early <\/a><\/div><\/td> Parental permission, ages six to 18<\/div><\/td>
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