When is the right time to give a credit card to my college going child?
Besides the convenience and flexibility, a credit card helps in building financial discipline.
According to Manoj Adlakha, VP and GM-Consumer and Merchant Services, and CEO, American Express Banking Corp. A credit card is a valuable financial tool and giving a card to college students will benefit the parent as well as the child. Besides the convenience and flexibility, a credit card helps in building financial discipline. Also, carrying a card is much safer than carrying cash. In the event one loses his or her wallet or purse, one is sure to get the card replaced easily and the loss will be very minimal compared to losing cash. Also, reward points offer a huge advantage as well. If used properly, credit cards can help you in getting interest-free periods and building a good credit history, which, in turn, will help you to gain access to the lowest interest rates, saving you money in the end.
At American Express, the eligibility for issuing a credit card is 18 years and above. Having said that, it is advisable that parents should give their kids, who are going off to college, a supplementary card so that while the child’s spending can be monitored, it will also help in building his or her financial discipline. By giving a supplementary card, a parent makes a child an authorised user. If a college going child wants to get approved for a card in their own name, they should either have a co-signer (parent) or show proof of independent income.