the problem with credit cards today is that people under 18 cannot have their own. How can we instill hardworking qualities in our young people while denying them the right to use their money as they choose?
How can we instill hardworking qualities in our young people while denying them the right to use their money as they choose?
Because it's not their money. It's the bank's money, and they are just loaning it. I don't know anyone under 18 that I'd loan money to.
People under 18 can have checking accounts. That's how you learn how to manage money, by having a finite amount to manage, not by having some open-ended letter of credit.
Not everywhere. I had a bad experience with this, myself. When I was about to start college, my mom went with me to get a checking account. We went to a local branch of a national chain of banks (so I would be able to access it easily at school as well as at home).
Because I wasn't 18 yet, they wouldn't let me have a checking account. Period. Not even if my mother co-signed for it.
Now, I was about to go to college. When I'm 400 miles away, I have to pay some of my own expenses, like books and non-cafeteria food. I wasn't asking for a credit card, just a way to write checks and pay my bills.
I ended up getting a checking account (with a debit card, no less) from my parents' credit union. It was the only place I found where a minor could have a checking account - and I didn't even need a co-sign. Unfortunately, they're only in my hometown - but their level of service makes them worthwhile to me. And I still remember that none of those other banks would give me an account 4 years ago.
Same here - shortly after turning 16, I called around to all the banks in my area, trying to find one that would give me a checking account. One bank even told me that they would over the phone, but then claimed that they wouldn't once I got there.
Finally I discovered the credit union, and haven't looked back. No monthly fees doesn't hurt either.
I can see why, though. Even though there is a set amount of money in the account, if you have a check book and don't closely track your balance, you can bounce checks, and that is not that good for the bank, especially if the person bouncing checks is under 18. When I was 16, I got a checking account with a bank, but only when my parents would be jointly on there, so an accountable adult would be responsible if a problem should arise. I think this is perfectly fine and sensible. I managed my money fine those days, but a great deal of people I knew wouldn't have at that age.
Yea, maybe they can have checking accounts, but what can they do with it? They can't write checks, can't get a debit card... So it's useless. I don't see why they shouldn't give out debit cards, the kids couldn't lose more than they have, so the bank doesn't take a big risk...
I had my checking account before I was 18. I didn't get cheques, but I got a debit card (with a PIN number and magnetic stripe and all). I couldn't have a negative balance, though (not that I needed one).
In The Netherlands, debit cards are very common, and you can pay with them in almost every store, and ATMs are everywhere too, and always at post offices and banks.
Yes they can however they need someone over 18 who is actually responsible for it, the under 18 does not pay thier bill the over 18 is responsible for paying it.
The credit card companies got alot of flack a few years ago (4-5) because they were directly advertising to middle and high school students to get thier own credit cards complete with middle and high school designs on the cards, just get one of your parents to sign and had it.
the problem with credit cards today is that people under 18 cannot have their own.
You can get a debit card from your bank. The reason it's illegal to give you credit (not that anyone would anyway) is that it's illegal for a minor to enter *any* kind of contract. You could maybe get one if your folks cosigned.
Being a teenager sucks, especially if you're ready to be independent. It gets better though. Just try to enjoy being 18 while you can!
The reason it's illegal to give you credit (not that anyone would anyway) is that it's illegal for a minor to enter *any* kind of contract. You could maybe get one if your folks cosigned.
I've always been baffled by people saying "you can't get a credit card until you're 18" stuff. I had a credit card during my entire senior year in high school and I didn't turn 18 until the summer after. Maybe Mastercard made a mistake or something but it sure made buying crap a lot easier. It's possible that one of my parents co-signed -- I honestly don't remember. But I never had any problems with it. In fact, I'm now in my early 30s and I still have the same damn card! (of course, I have multiple cards nowdays).
The reason it's illegal to give you credit (not that anyone would anyway) is that it's illegal for a minor to enter *any* kind of contract. You could maybe get one if your folks cosigned.
You left out the IANAL disclaimer, but that's ok, because it's damned obvious anyway. Do you really think it's illegal for a minor to enter into a contract? It only happens millions of times a day. I hope they don't haul them all off to jail.
They could give minors credit cards if they wanted to. It's just not a very bright thing to do. The problem, at least in the US, is that most contracts a minor enters into can be, by the minor, broken at will and without consequence. So credit card issuers don't like the idea of a kid going on a spending spree and then saying "I changed my mind and won't be honoring my agreement." But there's nothing illegal about it.
It's not illegal to enter into a contract as a minor. Minors can enter into any contract, but they can void the contract at their discretion, which is why most people won't enter into contracts with minors.
If the contract is voided by the minor, each party must be restored to the condition they would be in if the contract was never entered into. For example, if you sign up for a CD club as a minor (one of those deals where you can get 12 CDs for a penny, provided that you buy X number of CDs later), you can't just keep the CDs and never buy another. You have to return the CDs if you wish to void the contract.
If companies loan money to minors, they risk losing the interest since all a minor has to do is repay the amount loaned and void the contract. That's why they don't loan money to minors.
also there was already an cash-card expirement sort of in finland, where you would have cards you could load up at atm. though theres been little fuss about it lately, since only few places got the machines needed for it's operation (best place to use it was mcdonalds), and now with visa electron everywhere theres no point in using the 'old' cashcard system.
visa electron verifies that the money is on the account before every transaction so there is no credit issues with it. and it works around the world easily as well..
The point about credit cards is that you are using other people's money. I have no problem giving children their own ATM/checkcards, but people under 18 shouldn't be able to rack up debt. Older people have enought trouble with that responsibility.
We need to instill into our children a sence of fical responsibility, not another way to grid them into debt even before they can drink.
What does that have to do with anything? The only thing you *need* a credit card for (other than going into debt) is online transactions, and for most of those there are still alternatives.
"Be there. Aloha."
-- Steve McGarret, _Hawaii Five-Oh_
a problem (Score:2, Insightful)
Re:a problem (Score:5, Insightful)
People under 18 can have checking accounts. That's how you learn how to manage money, by having a finite amount to manage, not by having some open-ended letter of credit.
Checking accounts (Score:2)
Not everywhere. I had a bad experience with this, myself. When I was about to start college, my mom went with me to get a checking account. We went to a local branch of a national chain of banks (so I would be able to access it easily at school as well as at home).
Because I wasn't 18 yet, they wouldn't let me have a checking account. Period. Not even if my mother co-signed for it.
Now, I was about to go to college. When I'm 400 miles away, I have to pay some of my own expenses, like books and non-cafeteria food. I wasn't asking for a credit card, just a way to write checks and pay my bills.
I ended up getting a checking account (with a debit card, no less) from my parents' credit union. It was the only place I found where a minor could have a checking account - and I didn't even need a co-sign. Unfortunately, they're only in my hometown - but their level of service makes them worthwhile to me. And I still remember that none of those other banks would give me an account 4 years ago.
Re:Checking accounts (Score:2)
Finally I discovered the credit union, and haven't looked back. No monthly fees doesn't hurt either.
Re:Checking accounts (Score:2)
Not Quite... (Score:1)
Re:Not Quite... (Score:1)
In The Netherlands, debit cards are very common, and you can pay with them in almost every store, and ATMs are everywhere too, and always at post offices and banks.
Re:Not Quite... (Score:1)
I couldn't have an overdraft though, obviously, being under 18 and all.
Re:a problem (Score:2)
The credit card companies got alot of flack a few years ago (4-5) because they were directly advertising to middle and high school students to get thier own credit cards complete with middle and high school designs on the cards, just get one of your parents to sign and had it.
Re:a problem (Score:2)
You can get a debit card from your bank. The reason it's illegal to give you credit (not that anyone would anyway) is that it's illegal for a minor to enter *any* kind of contract. You could maybe get one if your folks cosigned.
Being a teenager sucks, especially if you're ready to be independent. It gets better though. Just try to enjoy being 18 while you can!
Don't need to be 18 (Score:2)
The reason it's illegal to give you credit (not that anyone would anyway) is that it's illegal for a minor to enter *any* kind of contract. You could maybe get one if your folks cosigned.
I've always been baffled by people saying "you can't get a credit card until you're 18" stuff. I had a credit card during my entire senior year in high school and I didn't turn 18 until the summer after. Maybe Mastercard made a mistake or something but it sure made buying crap a lot easier. It's possible that one of my parents co-signed -- I honestly don't remember. But I never had any problems with it. In fact, I'm now in my early 30s and I still have the same damn card! (of course, I have multiple cards nowdays).
GMD
Re:a problem (Score:1)
You left out the IANAL disclaimer, but that's ok, because it's damned obvious anyway. Do you really think it's illegal for a minor to enter into a contract? It only happens millions of times a day. I hope they don't haul them all off to jail.
They could give minors credit cards if they wanted to. It's just not a very bright thing to do. The problem, at least in the US, is that most contracts a minor enters into can be, by the minor, broken at will and without consequence. So credit card issuers don't like the idea of a kid going on a spending spree and then saying "I changed my mind and won't be honoring my agreement." But there's nothing illegal about it.
Re:a problem (Score:1)
If the contract is voided by the minor, each party must be restored to the condition they would be in if the contract was never entered into. For example, if you sign up for a CD club as a minor (one of those deals where you can get 12 CDs for a penny, provided that you buy X number of CDs later), you can't just keep the CDs and never buy another. You have to return the CDs if you wish to void the contract.
If companies loan money to minors, they risk losing the interest since all a minor has to do is repay the amount loaned and void the contract. That's why they don't loan money to minors.
Re:a problem (Score:2)
also there was already an cash-card expirement sort of in finland, where you would have cards you could load up at atm. though theres been little fuss about it lately, since only few places got the machines needed for it's operation (best place to use it was mcdonalds), and now with visa electron everywhere theres no point in using the 'old' cashcard system.
visa electron verifies that the money is on the account before every transaction so there is no credit issues with it. and it works around the world easily as well..
Re:a problem (Score:2)
We need to instill into our children a sence of fical responsibility, not another way to grid them into debt even before they can drink.
Re:a problem (Score:2)