Introducing your teen to credit before they leave the home is a great way to help them prevent financial pitfalls in adulthood. Here are some of things that you can do right now to help your teen understand the importance and power of a credit card:
CREDIT SCORE
Having and using credit responsibly will help build your teen's credit score. This score determines whether or not they will be able secure loans, jobs, apartments, and more. Sit down and explain credit scores with your teens as well as the factors that help it go up and down. Misusing their card now can affect their score for years to come.
CREDIT BALANCE
Unlike a debit card, a credit card is using money that you may not necessarily have. Teach your teen about staying under 30% of their credit limit (this will help keep their score high) and not buying anything that they don't have a plan for paying off.
CREDIT PURPOSE
What will this card be used for? Is it for emergencies only? Maybe it's for school expenses. Whatever it may be, sit down with your teen and let them know what your expectations are for the card, especially if they are an authorized user on your account.
A Cyprus Credit Union Teen Visa is a great way for teens under 18 to learn the value and power of credit. Here's how:
- Be a Cyprus Credit Union member
- Apply with a qualified co-maker (usually a parent or guardian age 21 or older)
- Use your Teen Visa Card responsibly
Benefits:
- Low rates
- Mobile Banking for Android and iPhones
- Free Text Banking
- Account alerts by text or email
- Free ATMs, more than 28,000 nationwide
- 25-day grace period on purchases
- Verified by Visa protection
- Choose a Platinum Awards card and earn rewards on every purchase
To apply for a card, you can either call (801) 260-7700 or visit any of our branches.
