Considering a credit card for a child or adolescent can be considered when you are confident in the adolescent’s ability to take charge of his or her financial affairs. Therefore, before applying for a credit card, it is important to go through with the young person how your credit card works in practice and what the responsibility of owning a credit card entails.
However, when a young person is in control of his or her finances, a credit card can give the young person benefits that a regular debit card does not offer. You can compare the benefits of credit cards in our comprehensive comparison.
Credit card comparison
A credit card provides increased security for online shopping, can provide travel insurance and cash withdrawal coverage abroad, and earns points on certain benefits.
If these benefits are relevant to the young person, the purchase of a credit card may be in place. In this guide, we will look at different options for getting a young credit card, and what restrictions are placed on a young credit card applicant.
If the child or adolescent does not have their own bank account but needs a secure payment method for dealing with their parents, there is an option to get a parallel card for the young person on the parent’s credit card. A parallel card can be a particularly good option if, for example, a young person goes on an exchange study. Abroad, a credit card can provide young people with both travel insurance and cash withdrawal protection.
However, it is good to have a Visa Electron card for everyday shopping, for example. In addition to travel, a parallel card provides additional security for young people online shopping. Both travel and online shopping are situations where a credit card offers better benefits than a regular debit card.
So if you have travel or online shopping for a young person, a parallel card may be a good option. A parallel card can usually be obtained between the ages of 15 and 16, which is earlier than your own credit card. In Finland, a parallel card can be obtained for many credit cards free of charge, and a separate usage limit can be set to secure the young person’s money.
If a parallel card has any loyalty program, the purchase of a parallel card also accumulates bonuses or reward points for the main card holder.
My credit card
Credit card minors start at 18, so it is a good idea to keep your credit card in mind from the age of majority. If a young person is able to take care of their own finances and there is no fear of misusing credit, a personal credit card for a young person may be a sensible solution because of the benefits of credit cards.
However, not always adulthood is enough. Some credit card providers have a minimum age of 19, 20, or even 24 years. Within the age limits, banks reduce their own risks; the bank believes that a customer of a certain age is better equipped to properly manage their finances. In addition, the bank usually requires a steady income that is easily missing from those over 18. Our comparison conveniently identifies all age limits required for credit cards.
Credit card for student
In some places, a college student can get a card more easily than just an adult. Student status means that you do not have to have a permanent employment relationship, but you can often apply for a credit card after a student has completed 90 credits. However, credit limits vary: at best, there is no requirement and student status is sufficient, with a maximum of 125 credits.
Student credit cards should also take into account lower credit limits, which range from $ 500 to $ 1,500. For some cards, the credit line can also be defined individually.