Best Debit Cards for Kids and Teens for March 2022
The popularity of debit cards among young people has increased significantly in recent years, mainly because they allow safe online purchases and make it easier to pay for streaming services such as Netflix, Amazon Prime, HBO, Spotify and YouTube.
If you are interested in processing one of these financial products, we suggest you continue reading this guide in which we will talk about the best debit cards for kids and students.
Best Debit or credit cards for kids in the USA
Young people must wait until they are 18 years old to apply for their credit cards. However, with the help of their parents, they can enjoy it before they come of age. Today we will explain the best credit cards for teenagers in the USA, in case you are considering the possibility of requesting one for your child or, if you are minor, for yourself 😃.
Some parents use credit cards to educate their children in the financial field, even while they are minors. Remember that good savings habits and knowledge about credits that you can pass on will be the basis for the good financial development of your children in the future.
Choosing the right card for a teenager will depend on their age, maturity, and financial capacity. So that you can choose the one that best suits your child’s situation, below, we will present several card options for teenagers in the USA.
Credit cards for tweens (11-13 years old)
If your child doesn’t have a bank account, now is to open one. Accessing a debit or prepaid card connected to your bank account is a good step for your child to understand how money is managed.
- Tweens and teens can share credit cards with family members or adult guardians.
- Virtual family “banks” can help teach credit and banking lessons without the need to open an actual credit card.
- Youth credit cards include those offered by Citibank and Discover.
- Providing your teen with a teen credit card can help them build a strong credit history in a safe environment.
An interesting variant of this idea is FamZoo, a virtual family bank: all the family’s prepaid debit cards are connected to the parent’s card, which is the source of financing for the other cards. Parents can monitor all child card activity, automate homework and assignment payments, deduct expenses, and even pay interest on savings. The system teaches children to budget, save and use plastic responsibly.
Credit cards for older teens (14-17 years old)
Many parents choose to add their children as authorized users or even joint account holders to teach their teens the real risk of racking up credit card debt.
A teen under the age of 18 cannot get a traditional credit card in their name, and a person between the ages of 18 and 21 can only get one with a cosigner or verifiable income, according to the Credit Card Act of 2009.
When parents include their children in joint accounts and educate them financially, they are helping them build a more robust banking record that will help you apply for a traditional card.
As the primary account holder, the parent has complete control and supervision. An obvious disadvantage is that the parent is responsible for the account and any charges incurred. The damage can go either way: the child’s credit will suffer if the parent doesn’t make timely payments or has a high balance.
The parent can add the child to an existing account or set up a new account specifically designed for teens. For example, there is the DFCU Student Visa Platinum card for youth ages 14-17, with a parent or guardian as a cosigner. The card’s credit limit can be between $250 and $1,000, depending on the parent’s creditworthiness. This type of card, and others like it, offer young teens the opportunity to learn credit management and build financial skills in a safe environment.
Establishing credit as a young adult (18+)
From the age of 18, the young person can legally obtain their credit card (with verifiable income if under 21). It is a great time to encourage you to take on a higher level of financial responsibility. The first credit card options are generally secured cards or student cards.
A secured card sets a credit limit based on the amount of money that has been deposited into a bank account, typically $300 to $500. The deposit is held as collateral against default. Transactions are handled the same way as traditional accounts. The user makes purchases, these appear on the account statement, and the user makes the required payment on the due date.
When choosing a secured card, make sure it has the following characteristics:
- It is considered unsecured before the credit risk rating offices (more favourable for the credit history).
- A grace period to pay for purchases without incurring interest
- Have a low annual fee or no annual fees.
- Which options have better conditions, compared to others.
Keep in mind that the interest rates will be high compared to unsecured cards, but ultimately it shouldn’t matter because the goal is to teach the teen to pay off the balance each month and avoid paying interest.
Few secured cards will meet all the characteristics that we have indicated, but it would be good if you manage to have some.
Harley-Davidson Visa Secured Card
The Harley-Davidson Visa Secured Card has no annual fee and has a grace period of more than 24 days. It is not a student card, but it is aimed at people trying to rebuild their credit history. It also offers a solid platform for new credit card customers as it reports to credit bureaus as secured.
Capital One Secured MasterCard
The Capital One Secured MasterCard has no annual fee and very few additional fees for foreign transactions, making it a good option for a young person planning to travel outside the United States or spend a semester or year university abroad.
Credit cards for students in the USA
A student card is better than a secured card because no cash deposit is required. It is a traditional credit card adapted to students or beginners. Although your credit limit will be modest, offer a friendlier deal to people still learning how to handle credit. They understand that they may make a mistake from time to time. A student credit card allows a young person to learn how to build a healthy credit history.
Discover Go Student Cash Back
The Discover it® Student Cash Back Card is a rewards card with no annual fees that will not impose a penalty fee on the account if the cardholder pays late. Also, the late payment fee is forgiven the first time it occurs. If you apply for the Discover it card and are turned down, Discover may suggest a secured card offer instead of a student card. It is an excellent option and one of the most favourable secure cards available.
Capital One Journey
The Capital One Journey Student Credit Card is a no-annual-fee card that pays bonus rewards to cardholders who pay their bills on time.
Now that you know the best credit cards for teenagers in the USA, you can choose the best option according to your child’s profile.
Benefits of debit cards for kids
By requesting one of these cards, you can enjoy a large number of benefits:
- Receive the money that your relatives send you in your account, either by electronic transfer or cash deposit.
- You will have the possibility of making secure online purchases on sites such as Mercado Libre and Amazon, especially if the financial institution offers you a virtual debit card.
- Quickly pay for all the streaming services like Netflix, Amazon Prime, HBO, Disney, Spotify and YouTube.
- You can process this type of card with minimal requirements, without paperwork and in a matter of minutes from the mobile application or the official website of the bank of your choice.
- The statements of your debit card will serve as proof of income that you may need in case you want to obtain other types of financial products, such as a credit card.
- This type of card offers promotions and special discounts in establishments of interest to young people.
- You can also pay at participating establishments with your card, which helps you reduce the risks involved in using cash.
- You will have a mobile application with which you can manage your money, control the use of your debit card and carry out bank transactions from your cell phone.
If you are interested in knowing more about what debit cards are and how they work, we invite you to read the full article here.
Student debit cards for kids are available.
Here are some of the best debit card options you can apply for this year if you’re a student:
Scotia Cool from Scotiabank
This first option is an account designed for young people with which you can enjoy the following benefits:
- We have personalized debit cards with international acceptance.
- Check your balance and get cash without commission at ATMs of Scotiabank, Inbursa, BanBajío, Afirme, Banregio, Banca Mifel, Intercom and Mi Banco Autofín.
- Transact online through ScotiaWeb.
- Receive free alerts via email and SMS messages of the movements of your card.
Go to your nearest Scotiabank branch to open your account.
Santander University Account
This card is ideal for students, teachers and university administrators. It offers the following benefits:
- Digital card to make secure purchases online.
- Access to bonuses, promotions and special discounts.
- Santander digital banking to carry out banking operations from anywhere.
To open your account, go to your nearest Santander branch and request the help of an executive.
BBVA Link Card
Link Card is the new BBVA account that replaces Winner Card. It is a debit card designed especially for young people that allows you to enjoy a large number of benefits:
- No commission for opening, account management and minimum average balance required.
- Open your account in minutes from the official BBVA website or mobile app.
- Get a debit card accepted wholly and worldwide personalized.
- Make secure purchases online with your digital card.
Banorte Sum Minors
This Banorte card can be an excellent option to start your financial life:
- Receive a personalized debit card with the design that you like the most.
- Earn returns by maintaining an average monthly balance of $500.
- Have your money at ATMs throughout the country and abroad.
- Access special promotions and discounts.
- Check your account statement through Online Banking.
HSBC Minor Flex Account
With this account, you can receive deposits, make purchases at participating establishments and withdraw cash at HSBC ATMs at no cost. In addition, you can enjoy other benefits:
- No commission charge for account management.
- Personalized debit card.
- Authorization of transactions through PIN.
- Control your card movements with the Total Control mobile app.
Request and process a debit card for Kids and students
Before deciding to open an account, we recommend using the card quoter that Cotizator makes available to you free of charge. In this way, you will be able to compare in minutes the characteristics and benefits of all the financial products available to choose the one that best suits what you need finally.
If you are already a user of this type of card, do not forget to share your experience in the comments section. This way, you will help more students interested in processing a debit card.
Best Debit Cards for Kids and Teens for March 2022