Credit cards can be a great tool for building credit and improving your financial standing. But can and should a teenager get a credit card? The answer is yes, but there are some things you need to know in order to choose the best option. Below, we discuss credit cards for teens and other alternatives, such as prepaid debit cards.
What age can you get a credit card in the UK?
In the United Kingdom, you must be 18 years old to apply for a credit card. This is the same age that you can legally enter into a contract. If your child is under 18, they won't be able to get a credit card. You can add a child to your own credit card as a second cardholder, but you may be charged extra fees for each extra cardholder. Plus, some banks still have age restrictions on added cardholders.
With GoHenry, children as young as six can have a prepaid debit card.
What are the alternatives to credit cards for teenagers?
Prepaid debit cards can be a good alternative to credit cards for teenagers. They work in a similar way to credit cards, but your teenager can only spend the money that’s loaded onto the card. This can help them stay within their budget and avoid getting into debt, meaning they’re a great way to learn about spending within their means. They are also a good alternative to credit cards as there’s no chance of interest rates or late fees. With the average annual interest rate on credit cards at 21.49%, this is a definite bonus.
A GoHenry prepaid debit card
GoHenry is a prepaid debit card designed for children and teenagers. It comes with a number of features beneficial for parents and teenagers, like being able to set spending limits, track spending and get instant notifications when money is spent. The card also has a built-in safety feature, allowing parents to freeze the card if it is lost, stolen, or misused.
Plus, there are a number of great extra features to make sure your teen gets a head start on their financial future. Some of these are:
- In-app Money Missions: Videos and quizzes help kids and teenagers gain money skills for life. Missions cover money basics, investing, saving, compound interest, borrowing, giving, and more.
- Paid tasks/chores: the ability to set up tasks or chores that your teenager can do to earn pocket money. This is a great way to teach your teen the value of work and responsibility.
- Regular pocket money payments: an allowance feature that lets you set up regular payments into your teenager's account and one-off payments for those special occasions.
- Co-parent option: the ability to add a second parent or guardian to your teenager's account, so you can both manage their money and see their spending.
- Saving goals: the ability to set up savings goals for your teenager, so they can start saving for the things they want. They can also set savings goals themselves.
- Split the bill: your teenager can enjoy treats like meals out with friends by splitting the bill easily to make group payments easier.
- Giftlinks: your teenager can easily and instantly receive money from friends and family with Giftlinks. This can be for special days like birthdays or Christmas, for a rainy day treat or helping them out towards a saving goal.
- Apple Pay: teenagers can use Apple Pay to make contactless payments with their iPhone or Apple Watch. This is a great way for your teenager to learn about using money in a digital world.
Plus, it's so easy to set up and manage your teenager's account with the GoHenry app. Simply go to our website and sign up today. We carry out a simple Know Your Customer check (KYC) to check your name and address against public records (like the electoral roll) to verify your details - making it even easier for you!
If you're looking for a great way to help your teenager manage their money, then a GoHenry prepaid debit card for teens could be the perfect solution. Sign up today and get started.