Not just no, but HAAIILL No.

You might as well forge, hammer, and bolt the chains to your kid's leg.

I got my own card at 18 without a cosigner, and it was very valuable at getting an early start on good spending habits, using credit wisely, and building a credit history. If it was necessary, and my kid couldn't get their own card at 18, I would definitely cosign for them. Of course, at the same time there were kids my age that ran themselves into trouble, so it's not for everyone.

Funny, we restrict drinking to the age of 21 ....but we let teenagers with no job get 4 digit credit limits.Go ahead, co sign for em.

Depends on the kid. At 18, the debit card was perfect for me. I got my first credit card at 21 to start building good credit, by then my time in college and debit card managing had taught me a little bit about budgeting and I managed to not run myself into debt.

However, I know plenty of 23+ y/os who I still wouldn't trust with a credit card.

Id say no way.Even if you have a responsible 18 year old-and whos gonna say they dont?-life happens.Job loss, short some $$ on the college tuition, or theyre just plain broke and friends want to go out.
Never underestimate peer pressure, and quite frankly it could be said that few adults need credit cards, much less any teen just learning about budgets and spending.

If you NEED to train a teen about credit, use a secured card with THEIR OWN MONEY.That way, no lifetime of debt from that late night Papa Johns run...

@youbastid:

And people 18-21 don't necessarily need a Visa/MasterCard/Amex. A gas station credit card is a great tool to establish credit provided that it is paid off every month. It's hard to get in trouble with these unless you don't pay the bill or buy like $20 worth of candy every day.

By getting a credit card at 18 I had the opportunity to build up a good credit history that really helped me out. I don't understand why they changed the law so that an adult would have to have a parent sign off on something. I was out of the house at 18 and my parents wouldn't/couldn't help with anything. I had to take care of myself, this law makes doing that harder. If this law had been in effect when I was 18 I would not have been able to build up my credit score to get the lower interest rate on my first car or my house.

It all depends on the situation. Trust is earned, but broken instantly (unless your stupid...). I had to co-sign for my car because I couldn't (past medical bills that got paid off but damage was done), but my grandma was willing to help because I showed that I can afford it.

1+ year later, and I'm making double payments a month effectively to the car and most new debt from my new round of med problems being paid off in conjunction. I earned the trust the right way by showing her what I could do, while others in the family had broken her trust in them.

For a credit card, I'd just go the secure card route if they had bad debt in the past. I had to and while it's only $300 right now on my limit (rarely touch it as it is and only use to build credit that was burned int he past) but I had to foot my own cash to cover it which didn't bother me.

Just turned 22 now, still in college, got my first card at 18, from what i recall at that age I did carry a high balance, my limit was $700 and it was lingering around $500, when I got a new job at a national pre owned car superstore, I learned about debt to income, credit utilization and all the necessities, if it wasn't for them I'd have no clue, I currently have approximately $10,000 of available credit, I use less than 300$ so my ratio's are great, score is great, just got to keep it that way, and yes peer pressure to go out and have fun is quite big especially when your in south florida where everyone and their mother have debt

@Silversmok3: Its worse than that. We give them the legal right to KILL PEOPLE at 18 [www.defenselink.mil] yet wont let them drink

i dont understand why they inserted this under 21 provision in. I like the CARD act. i don't think CC companies should advertise on college campuses. i think CC companies should more adequately gauge a consumer's ability to repay their debts. I get it. I like it.

but, i dont get why a 22 year old w/o independent income should have an easier time geting a credit card than a 20 year old w/o independent income. isn't the issue income and you're ability to repay and now how old you are?

i dont get it. the military isn't required to get parents to co-sign enlistment papers for 18 year olds.

so you can die in iraq but can't get a discover card? makes sense.

@Gmork: Parents only have to co-sign *IF* the 18-20 yr old has no independent means to pay -- if you are 18 and have an adequate income of your own, this does not apply to you.

I can't believe this.

Sure many kids aren't trust-worthy enough, but for those who have earned your trust, I don't really see any reason why not.

First of all, you can control the credit limit or how much you can lose out. With something like $1,000 limit, is that really too much for you to lose in order to give your kid another lesson in financial responsibility and help him start building his credit?

There are many things parents have to help cosign for (i.e. college loans, apartment lease, etc), and if you can trust your kids with those, I hardly think a low limit credit card is all that much...

If you have a good kid, I think this would work. Having your them know that you're looking over their shoulder and covering a percentage of the bill is a good way to have training wheels on your finances.

I think irresponsible teens will find themselves ways to continue being that way. Parents can either try to remove every temptation or threat but it's impossible to do so. Parents need I teach their teens about sound money management and consequences of failing to make the proper decisions. And cards should be tools and used as a contract of trust between parents and teens, never something you simply give a teen. When I got mine at 18 I was told to be careful with it and that it was a tool, not a toy.

Credit cards can also be a teaching tool for parents, a way of showing in tangible ways how one bill could wipe out a summer job's earnings. If they have to pay it themselves and you are afraid they will wreck their credit if they spend too much, the first lesson is then: how to teach kids the value of money?

Best case scenario is to add them, don't tell them, don't give them the card. It builds up their credit, which they likely won't check until they're older. But stay diligent on checking yours, 'cause kids is sneaky.

I will definitely cosign for my kids if necessary. It's important to start your credit history as early as possible. I will raise my kids the way my parents raised me, and they will not spend any money that they do not have.

I disagree with this. I thought I was being "good" by not getting my first credit card until my senior year in college. I took a job the year after (2002) making a good salary with gauranteed periodic raises (gov't job.). The year after that I decided to by a house (live in Houston, houses have been and will always be cheap here..). I had a 10% downpayment + closing costs in the bank. I had a stable salary. What I did not have was credit - I had zero credit history besides one card with a $1000 limit that was precisely 2 years old. I ended up being able to eventually get a mortgage, but my rate was about 0.5% higher than what I could've gotten with a high credit score (and refinancing costs $$$$) This effected me from the beginning - I had to make a bigger deposit on an apartment (after being denied one application), had to put deposits on utilities to get hooked up, my car insurance rate was higher. Having no credit costs you money. Bottom line. Parents should cosign a card for their child the day they turn 18 to help them build credit. Put a reasonable limit on it ($500 seems to be a reasonable liability to be willing to take on for your child) and help them get their life started right.

and don't forget the 18 year olds who don't go to college.. join the military, have random jobs, pursue trades, whatever. We live in a credit card driven economy. Getting a hotel room requires a security deposit on a credit card, so does a rental car (not that that's easy for an 18 year old to get) and making purchases online.

@Jesse: Agreed, there are better ways to get credit:

- Instead of giving them a card that they can use for anything that pops into their head, encourage them to finance (gasp!) an important purchase using a bank or credit union sig loan, and co-sign on that. For instance, if they want to buy a computer, borrow using a sig loan. This gives them a non-revolving loan with a set pay-off date and amount, so they learn to PAY OFF LOANS.

- For a new car, use car financing. Again, if you're OK with co-signing, co-sign the car loan rather than a revolving card.

Etc...

Note I'm not debating the point of whether co-signing in and of itself is good or not, that's a decision that each parent has to make based on what they know about the responsibility that their kid demonstrates.

@j-o-h-n: What does "independent income" mean though - The whole time i was in college I was claimed as a dependent by my parents, even though i had a job. would i still have qualified? I think that the extra 5 years or so helps with my credit, as the credit card that i opened when i was 18 is still the main credit card that i use.

I have real issues with treating someone who is legally an adult different due to an arbitrary number. Either 18 is an adult, or it isn't.

@humphrmi: Your logic is poor at best. To make a 18-20 year old buy a car with a loan or go into other debt because of this law is awful. With a credit card you will not be out a nickel if you pay off the balance every month but with a loan you are guaranteed to pay interest. I understand that you want the debt to have some assets as a result but it is not worth paying extra for.

@j-o-h-n: I have not heard what the independent income really means. Does it mean you have a job or does it mean you are not a dependent on your parent's tax returns? I think few companies will deal with the trouble that the government will cause them.

A prepaid Visa card gives them all the convenience of a credit card with none of the risk...

Yes, but get a very low credit limit. Maybe $500 or less. This gives them some purchase power, but limits the extend of their "damage". Maybe after they've proven they can handle it, bump it incrementally. i.e. after the first year make it $1000 or something.

People need to establish a credit history. This means age of accounts AND willingness to pay them regularly.

There are always secured credit cards, too.

So, i stated it above, but what does independent income mean? I was claimed as a dependent until i graduated college - but that had nothing to do with if i had income or not.

I personally think this is an awful part of the CC act. I think that although the credit card companies do tend to prey on 18 year olds because they think they are easy money, it is no different then when they prey on other "vulnerable" groups such as those who have recently gotten out of bankruptcy, or have poor credit.

In our country, 18 is an adult, 18 is when you can legally sign a contract - why would we make an exception in this case?

One suggestion that I have heard is to add your 18 year old child as a authorized user to your credit card, but don't give them the card or let them know the number. By the time they are 22 and looking for their first apartment or their own credit card, they will have an established credit history (assuming that the parent is not a dead beat).

No way. Good kids can make bad decisions too.

Let them take the financial planning class. If they take one of those, they can apply alone.

@Inka Dinka: :)

Correct, just make sure you have never been late on the card and that there isn't too much of a balance.

another question to ponder is whether the bad credit use has to do with a card holder being a first time card holder, or if it has to do with the age. I feel as though they may just be delaying the problem.

@krunk4ever: If the kid defaults, the card will still show up on the parents credit report.

Who says the kid will tell the parent right away?

The answer to any question beginning with the words "Should I cosign..." is HELL NO unless you would feel comfortable paying for everything yourself anyway.

What about cases when the parent's credit is so far in the dumps that they do not qualify as a reliable co-signer? My mother has horrible credit and wouldn't even have a slight chance of co-signing for me (if I were 18) and getting my first credit card under these new provitions. Luckily I was able to learn from my parent's credit card mistakes and when I got my first card at 18 with a limit of $500 I understood the meaning of credit and didn't charge things expecting never to pay for them. Having established credit at 18 years old helped me tremendously when it came time for me to buy my first car. Although I am only 23 my credit record is excellent and my credit score is much higher than many of my friends who weren't as responsible.

@Cat_In_A_Hat: I was/am in the same situation. My parents both have terrible credit and could definitely not co-sign on a credit card for me. Why should I have to wait until I'm 21 to start building my credit because of their past mistakes? If anything, I've learned what not to do from them. I'm responsible with my credit cards and I've built up a great credit score the past few years. And I don't even make much money, I just don't charge more than I can handle. I think it's wrong to pre-judge a group of people based on age.

@youbastid: I got a credit card at abotu 18, too, but I had a job and had had once since I was fourteen. And I wasn't poor, we lived in a swank suburb. Every kid is different, but perhaps the banks have a point on who is trustworthy with credit and who isn't. Until then, you can get your kid one of those pre-paid check cards that you or they put money on, and the parent is a joint owner of the account.

@Inka Dinka: Yeah, be careful with this. Say one parent loses a job, then your kid will have bad credit without even knowing it.

@Jim Topoleski: At least we let them vote and kill now. And buy porn!

@Gmork: Because that adult is unemployed.

@calquist: My kid still can't handle a debit card correctly, so H*LL no to co-signing for him. I can't tell you how many times I've checked the statement where he's hit an ATM for $20 - and get charged $2 by the ATM and $2 by the bank for the "privilege". And then he wants more money cause he's a little short again. I've explained it to him several times, but he just doesn't seem to get it. Scared the bejeezus out of me for his future.

I think you have to know your children. Sure they can screw up but if they've generally been responsible through high school, they're not going to turn into werewolves when they hit 18.

We obtained joint credit cards for each of our children when they entered college, more because we wanted them to have a source of funds in an emergency. They got the bills each month and paid them. We got copies and never had a problem.

Would I do it again? Sure.

I received my first credit card (one specifically marketed to students) from Citibank when I was 18. When I saw that it had a $2,000 credit limit, I wondered what the fuck they were thinking giving out CCs with such a limit to someone like me who 1) had no credit history and 2) no proof that they had a way to pay off a credit card? I am PLENTY responsible with my personal finances, but a lot of kids my age would have probably gone straight to the mall and maxed out the card upon seeing that magic number.

Today I'm 20 and have over $40,000 in credit lines, the vast majority of it being from Citibank and Chase. The most egregious offender has been Citibank, which has upped the aforementioned "mtvU" credit card from its original $2K limit to $10K. In addition, they've been more than happy to accept me for 3 credit cards totalling $18K that I applied for a couple of months ago.

The only reason I applied for those cards was for bonus point offers (yay $325 in giftcards!) and 0% no-fee balance transfer offers (I'm planning on letting my $15K from Citi sit in the bank and earn interest for a year.) I always pay off my credit cards every month without exception. But not everyone else does. Irresponsible lending like this is why we are in the financial situation that we are now. Evidently their attitudes haven't changed, though...seeing as Citi has been happy (even in this recession) to extend $18K in credit to a 20-year-old college kid who makes a few hundred bucks a month in income.

Back to the original question, though...I do think that there should be limitations when kids get credit cards...but not to the extent that this law proposes. Maybe let kids get a CC with a $300 credit limit or so, which would allow them to learn responsible use of a CC and to build credit, but not leave themselves and the lenders totally screwed if they do mess up?

@SacraBos: I did that all the time in college. It wasn't until I graduated and got a job and made my own money that it finally sunk in how all those things add up.

@SacraBos: A little off-topic, but I think you need to use a different bank. There are a lot of banks that don't charge you a fee for using "outside" ATMs, and even a few that will reimburse you for ATM fees charged to you by other banks.

@krunk4ever: $1000 plus overdue fees for months can add up to a lot of money very quickly.

CREDIT?! WTF!
NO NO NO NO NO!
1x10^6 times NO!
NO^n!
Teenager & Credit card should NEVER be spoken in the same sentence unless you're saying either this sentence or something like: "Teenagers should NEVER ever, Ever, EVER, EVER have a credit card."

Credit cards do NOT teach financial responsibility.
They encourage the EXACT opposite.

<Rant>

This is how I look at kids & finances:
Fetus:
- Joint bank account or CDs for college saving. (No checking, just savings. For large $$ gifts they may get on special occasions; ie birthdays, x-mas, graduation parties etc). The dependent should never be allowed to even TOUCH this account unless they're making a DEPOSIT.

Pre-Highschool:
- Allowance for school lunch or brown bag it.
- Chores if they want spending money.

Highschool teens?
- Credit union account with checks, no debit card yet*. It should ONLY contain THEIR money. Joint? Yes, so you can monitor it.
- Money beyond chores... they get a job to fill the CU account and to teach them the value of a dollar.

*Checks so they can learn how to balance their own books. After they've proven that, then and only then can they get the DEBIT card. (You're still monitoring the account, mind you.)

POST HIGH SCHOOL GRADUATION:
The ONLY reason I see any dependent having a joint card is if they're in college. Even then it's ONLY for books & emergencies (meaning hospitalization, car repair during holiday travel home).

Not going to college? Whatever, it's the kid's choice.
Once they graduate & move out their college savings is theirs & they're no longer a dependent.

</Rant>

@BytheSea: I think giving them a pre-paid check card has the opposite effect. That's just free money and they don't learn that they ever have to pay for what they buy. I would give one of those to my kids if they were 12 maybe, but not 18.

@Raanne: because too many people abused the power of Credit hence this has to occur unfortunately and fortunately.

@BytheSea: I don't think it has to do with your status as a dependent or not, I think its based just on demonstrable employment/income.