CC option for 17yr old son.

[wa3more]

You are entering into a contract when applying for a credit card and minors do not have the capacity to enter into such contracts.

I personally think 17 is too young to worry about building credit with credit cards. Kids in high school and college are accumulating cc debt at an alarming rate.

Let them have a bank account and debit card and see how they manage cash.

[CreditScholar]

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@wa3more wrote:

You are entering into a contract when applying for a credit card and minors do not have the capacity to enter into such contracts.

I personally think 17 is too young to worry about building credit with credit cards. Kids in high school and college are accumulating cc debt at an alarming rate.

Let them have a bank account and debit card and see how they manage cash.

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While this might be true for many, I'm not sure if it holds true in every case.

I honestly don't see an issue with starting to build credit slowly and responsibly at 18. As I mentioned previously, this is highly subjective and will vary from one individual to the next. I had credit cards in college and did fine, and I'm sure many others on here know of similar cases. Likewise I'm sure everyone on here has also heard of disaster stories from similarly-aged people.

I wouldn't apply a blanket rule like this to everyone.

[Anonymous]

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@Creditdreamer wrote:

I was added on my mom's Citi card as an AU at 16/17. At 18, I applied for my own Citi card and received a $4,000 limit. I didn't go crazy with the card spending. But it was very easy with a $4,000 limit to get in the mindset that it would be fine and I could just pay it as I had the money. $20 here, $5 there. It added up. I only had a yearly income of $7680 because I was in college full time etc. I had maxed it out by the time I was 20 and defaulted on the card by the time I was 22 because I couldn't afford the minimum payments anymore, was very overwhelmed, and didn't know any better. If I had used the card responsibly, my credit would probably be amazing right now. So just a word of caution with that. Because if she hadn't added me as an AU, I know there is no way I would have gotten that kind of limit right at 18. I kick myself for being so stupid because digging myself out of this hole has been a long and very difficult process. And it's still in progress. It would have been more helpful had mom gotten me on a budget first and showed me how to stick to it and account for all my spending to make sure I never spent more than I had.

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Sorry to hear your story but like you said that was your choice to be irresponsible. My story is the exact opposite. I'm 27 now. At 16 my mom opened a CC just for the purpose of me using it and added me as AU. She didn't manage the account in any way. I used it, I paid for it using the online account that I created. It was MBNA at the time. The day I turned 18 I got my Amex, which is my oldest card to date now. I never spent what I couldn't afford and I've never paid interest in these 11 years of using credit cards. My scores are in the 800s. So to the OP, if your son/daughter is responsible, then it's one of the best things you can do for them.

edit: to add to that, that good credit allowed me to buy a home at 25 with a great rate and also get a nice car at a great rate too. Credit can go far if used properly.

[Callandra]

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@CreditScholar wrote:

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@wa3more wrote:

You are entering into a contract when applying for a credit card and minors do not have the capacity to enter into such contracts.

I personally think 17 is too young to worry about building credit with credit cards. Kids in high school and college are accumulating cc debt at an alarming rate.

Let them have a bank account and debit card and see how they manage cash.

---

While this might be true for many, I'm not sure if it holds true in every case.

I honestly don't see an issue with starting to build credit slowly and responsibly at 18. As I mentioned previously, this is highly subjective and will vary from one individual to the next. I had credit cards in college and did fine, and I'm sure many others on here know of similar cases. Likewise I'm sure everyone on here has also heard of disaster stories from similarly-aged people.

I wouldn't apply a blanket rule like this to everyone.

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As much I believe kids don't need credit cards (and tablets and phones), you are right. Each child is different and there are some that I'm sure could manage a credit card just fine at 18. Of course there are definitely 18 year olds that shouldn't be allowed near credit cards as well! OP knows his son (step son) better than the rest of us so it's really up to his judgement. 

[wa3more]

There are always exceptions and every parent thinks their kid is it. The number of teens and young adults claiming bankruptcy is alarming and might be the fastest growing segment filing chapter 7. In most cases, I just don't think this is a good idea.

I've been an accountant for 35 years and worked in wealth mgmt for one of the largest investment banks for a while and have seen these situations turn bad more often than not.

[bdhu2001]

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@wa3more wrote:

There are always exceptions and every parent thinks their kid is it. The number of teens and young adults claiming bankruptcy is alarming and might be the fastest growing segment filing chapter 7. In most cases, I just don't think this is a good idea.

I've been an accountant for 35 years and worked in wealth mgmt for one of the largest investment banks for a while and have seen these situations turn bad more often than not.

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I wonder if part of the problem is that they weren't taught how to handle credit by their parents and just thought as long as they could pay the minimum, everything was fine.  Some young adults get a credit card and think it's free money until  they get a wake up call.

If this kid gets an AU card at 17, then he has at least 1 year of mentoring and guidance from his parents on how to handle it.

[CreditScholar]

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@wa3more wrote:

There are always exceptions and every parent thinks their kid is it. The number of teens and young adults claiming bankruptcy is alarming and might be the fastest growing segment filing chapter 7. In most cases, I just don't think this is a good idea.

I've been an accountant for 35 years and worked in wealth mgmt for one of the largest investment banks for a while and have seen these situations turn bad more often than not.

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Agreed that its an issue for many, but to be blunt if they don't manage their money correctly that's their problem.

Each person needs to evaluate their own situation and should they decide in the positive, be willing to take the risks that come with such a decision.

[CreditScholar]

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@bdhu2001 wrote:

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@wa3more wrote:

There are always exceptions and every parent thinks their kid is it. The number of teens and young adults claiming bankruptcy is alarming and might be the fastest growing segment filing chapter 7. In most cases, I just don't think this is a good idea.

I've been an accountant for 35 years and worked in wealth mgmt for one of the largest investment banks for a while and have seen these situations turn bad more often than not.

---

I wonder if part of the problem is that they weren't taught how to handle credit by their parents and just thought as long as they could pay the minimum, everything was fine.  Some young adults get a credit card and think it's free money until  they get a wake up call.

If this kid gets an AU card at 17, then he has at least 1 year of mentoring and guidance from his parents on how to handle it.

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This is based on the premise that parents are both capable and willing mentors to their children.

Another issue is this - how many adults don't have their financial situation in order? If they don't, why would we reasonably expect their kids to have theirs sorted either?

[wa3more]

BD,

kids are not taught in high school and many parents are not good role models. Money topics are taboo in most families and we have a "I want it now" society. Americans are hyperconsumers and kids have no disipline. The US has the lowest savings rate in the world.

My parents did not discuss money but I watched what they did. My dad lived thru the depression and my grandfather lived thru the 1920's hyperinflation  in germany so they both hated debt.

What happens alot is the kid has a card and the parents don't know  what's going on and all of a sudden they have a major problem. Parents get blindsided. Real sad. So the kids today have credit card debt and major student loans that sometimes take 10-20 years plus to pay off.

[Anonymous]

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@wa3more wrote:

You are entering into a contract when applying for a credit card and minors do not have the capacity to enter into such contracts.

I personally think 17 is too young to worry about building credit with credit cards. Kids in high school and college are accumulating cc debt at an alarming rate.

Let them have a bank account and debit card and see how they manage cash.

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Hes had a bank account for about 3 years. He keeps track of it, deposits his allowence, b day money, xmas money, he doesnt get the allowence anymore, but deposits his checks, has always maintaned it himself. Before driving he went to the bank every friday to deposit, withdraw. Now he goes every friday himself. He does very well.