Otherwise they're paying expensive dollars for everyday purchases, running the risk of damaged credit and learning some bad credit habits at an early age. Consider voluntary limits Consider putting a voluntary limit of less than the card company will allow - after all if the card is used for emergencies only you don't need all those thousands of credit dollars out there tempting you. If a young person has a credit history and can qualify for a regular every day credit card, it may work out to be a better deal. All students and teens should remember that a credit card is not only an efficient way to get what you need, it is a stepping stone to a solid credit history, something of major importance to their future. And, by the same token, if it's misused it can put a blot on their credit record that will haunt you for years and make a lot of things they want to do harder to do.
Secured cards are also an option for both teens and students.
The credit limit is determined by how much is secured in the bank as collateral. There are also cards available where parents can link the card to accounts they have opened, or where they can keep refilling the teen's or student's accounts as they go along. It's a way to keep up with what's going on, limit spending but still provide the freedom and convenience of a card. Parents also need to be careful in case teens apply and receive credit cards without their knowledge. It's not supposed to happen to anyone under eighteen, but there is ample anecdotal evidence of people far younger filling out forms and getting their cards.