Which credit card is suitable for your son or daughter depends, among other things, on the age of your child and the purpose of the credit card purchase. Accordingly, it should be considered whether an actual real credit card or a prepaid card should be applied for. An explanation over at thequeens.net
For schoolchildren, a prepaid credit card is recommended, the available amount of which does not exceed the credit on the connected account and excludes the way into the debt trap.
If your son or daughter is already earning his own money and would like to use a credit card for a stay abroad, for example during his studies, you can choose a model with an individually defined credit limit or a partner credit card.
Advantages of credit cards for the son or the daughter
Credit cards play a very important role in society today. Whether paying online or renting a vehicle, checking in at a hotel or paying an invoice in a restaurant, using a credit card makes life easier and the payment process is accelerated.
However, you should keep in mind that with an unlimited limit you are not doing your children a favor and making an educational mistake in dealing with money. The fact is that self-earned money does not spend as quickly as an amount that you make available to your daughter or son and that is present as a frame on a credit card. Since the use of a credit card cannot be avoided, especially during semesters abroad or an exchange year at school, you should choose it wisely and best choose a credit-based model – the so-called prepaid credit card.
Which credit card is ideal for children?
Most parents tend to use a prepaid credit card with a classic current account or call money account attached. You should also make sure that there are no unnecessary fees for receiving the card and that account management is offered at no additional cost. For stays abroad, a classic Visa or Mastercard can prove to be an advantage, since your son or daughter will not be left without a financial background should the credit on the prepaid card be used up.
A classic credit card or a partner card are recommended, because this way you have an overview of all expenses and can react at any time, the availability limit must be increased or the financial scope increased for unforeseeable reasons. With reliable children who handle money well, you can definitely choose a classic credit card, while the younger generation with a lavish lifestyle should opt for the prepaid model.
Facts about the terms and framework
So that the credit card is practical and cheap, pay a lot of attention to the general conditions and conditions of use. In doing so, you primarily focus on the application, which should be possible within Germany without fees and abroad with low costs. A fixed amount of cash withdrawals from ATMs should be possible on a monthly basis , as these would otherwise lead to costs and could entail high fees due to the use of third-party ATMs or withdrawals from foreign banks.
A credit card with an interest-bearing checking account or call money account is the best way to not only spend money, but also to recognize added value in savings. Since the available limit can be used up in spite of economical use of the money, the possibility of increasing the limit should be easy online or by phone. When applying for the credit card, specify exactly what amount your son or daughter has and what uses they can use with the card.
Special features of credit cards for children
Young “credit card holders” should not be directly confronted with the offer of unlimited availability. Therefore, many banks offer special credit cards for pupils and students, as well as for trainees or children without their own income. These are primarily prepaid cards that belong to a checking account and function in the same way as a classic credit card. This means that payment on the Internet or in local shops is possible without any problems, provided that the account has sufficient funds and payment can be made on a credit basis.
As a child under the age of 18 is not fully legally competent, you, as parents, remain entitled to dispose and issue instructions. This means that not only the signature of the cardholder, but also the legal guardian is required if the desired limit is increased. Accounts with an integrated credit card are advantageous, where your son or daughter can both save and make payments using the credit card. ATM withdrawals are best limited to the daily total