What is the best prepaid credit card for a teenager?

Question

The only way to get a credit card when you’re under 18 years old is to become an authorized user on an adult’s credit card account. You cannot get your own credit card account until you turn 18 and you’re able to demonstrate enough independent income to make monthly bill payments... read full answer.

However, being an authorized user will help you build credit in the meantime, as long as the primary accountholder pay the bills by the due date.

Alternatives to getting a credit card if you’re under 18:

Become an authorized user: If you know someone else who has a credit card (like your parent) you can become an authorized user on their credit account. You’ll get your own card that’s connected to the cardholder’s account, and any purchases you make will show up on their statement.

The primary cardholder is the one responsible for paying. This is a great way to build credit, although you won’t build it as quickly as you would with your own card.

Take out a loan. Credit-builder loans are sometimes available to people under 18 who have a cosigner (someone with established credit who takes responsibility if you default). But it will be more difficult than getting a loan at age 18.

Use a debit card. You can’t build credit with debit cards, but they can make everyday spending more convenient. And there’s no need to worry about going into debt because you’ll be spending the money from your checking account, not borrowing anything.

You’ll definitely need to wait until you’re 18 to get a credit card account in your own name. But being an authorized user is still a very useful way to build credit and practice using a credit card responsibly. Then, once you turn 18, you’ll already have some credit history and may be eligible for better offers right off the bat. You can track your progress with WalletHub’s free daily credit score updates.

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Answer 1 · 2019-10-17 06:50:14

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Archie Conway, WalletHub Financial Advisor

@ArchieConway • 10/17/19 This answer was first published on 10/17/19. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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The best teen prepaid debit card is the American Express Bluebird Prepaid Card because it does not charge activation fees, in-network ATM fees, or monthly fees. Prepaid cards are not actually credit cards, though. There is no credit line associated with prepaid cards, and they do not affect your credit standing. The closest you’ll find to a prepaid credit card is a secured credit card.

The Bluebird Card Welcome Kit ($5) can be found at over 4,500 Walmart locations. It includes a temporary card that you can add funds to at checkout, then use immediately. To get your permanent card, register online or via the Bluebird app. Or, you can skip the kit and sign up for free on the Bluebird website, or download the mobile app to register there. You’ll then receive your Bluebird card in the mail within 7-10 business days. Most account services can be done online or via the Bluebird mobile app, rather than by going to Walmart.

It’s relatively uncommon for prepaid cards to have no major fees. But like most prepaid cards, there aren’t any rewards with Bluebird. And like all prepaid cards, teens under 18 will need the help of a legal adult to obtain a Bluebird card. An adult must first open a regular Bluebird account, then establish a Bluebird Family Account for the minor. You must be 13 years old to have a card tied to a Bluebird Family Account.

Just remember that this is an American Express card, which means it isn’t accepted everywhere. If a teenager is on a road trip and running out of gas, it would be unfortunate if the next gas station didn’t accept Amex. Other prepaid card options without this limitation include the Emerald Prepaid Card and the Western Union NetSpend Card. Both are Mastercards, and neither has monthly fees or activation fees. They do both charge for ATM use, however.

Teens 18 years or older who are looking to build credit should instead consider a secured credit card or a student credit card, both of which report to credit bureaus. Teenagers under 18 years old aren’t legally allowed to open their credit card accounts, and will need to be added to an adult’s account as an authorized user.

What is the best prepaid credit card for a teenager?

Archie Conway, WalletHub Financial Advisor

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