Discover Student Card
If you’re looking for credit card for your teenager there are a few venues and companies that can serve your needs best. One of the better ones, is a very well known credit card company, it’s only been around for about 25 years but it knows what it’s doing. Discover has made a name for itself in the credit card industry for having some of the better deals or benefits when it comes to being a credit card holder. What better credit card for your teenager then one that starts out with really good perks.
The Discover Student credit card is a credit card that is chock full of benefits it’s a good credit card even if you aren’t a student or teenager. It has an introductory offer of 0% APR for the first six months. After that depending on your credit rating the APR will be somewhere between 13.99% and 20.99%. This is a really good deal for someone just starting out in the credit card world.
Credit cards for teenagers are excellent ways to teach the fiscal responsibility. It also teaches them the proper usage of a credit card. Be aware when I say credit cards for teenagers I’m speaking about someone who is 18 or older. You cannot sign a contract until you are 18 years old, the age of majority in the United States.
There’s also no annual fee with this credit card this will save your teenager hundreds of dollars over the years. There are fees for things like a cash advance or exchanging U.S. dollars to foreign currency or vice versa. Cash advances should be used very carefully. This is something you really should in part to your teenager. A credit card is not free money; it does have to be paid back. If they do choose to take a cash advance the interest rate will be 23.99% and they will pay a fee of $10.00 or 5% whichever is higher. The fee for exchanging foreign currency is 2% of the purchase amount in U.S. dollars.
Other fees to be aware of are penalty fees. These are actions you really should stress to your teenager that they are not acceptable habits to get into; in fact they should never happen even once. The penalties are for late payments and return to payments. Both of which are very destructive to your credit score. The fees for late payment or return payment are $35.00 per incident. With the return payment they will also be paying the bank for bouncing a check or electronic transmission.
Getting the Discover Student credit card for your teenager, or encouraging them to apply for this credit card means that you as a parent will need to make a commitment to teach them how to use it properly. There are many lessons a parent can impart to their teenager. Few are greater than teaching them how to responsibly use a credit card whether it is geared for the teenager or not.