Volt Credit Card
At 16, Volt Teen Banking members can apply for a Visa Rewards Credit Card. It starts with a credit limit up to $1,000 and a low interest rate while letting you build rewards points that don’t expire. Until 18, parents are required to co-sign for the account.
There are many benefits to getting a credit card early, such as having time to build your credit and learning the difference between a credit and debit card in action.
Here are some tips to keep in mind for using credit cards for beginners:
- Pay your bill before it’s due so you don’t incur interest charges.
- You can use it to cover minor emergencies as long as you make your monthly payments on time if you can’t pay it off in full.
- If you don’t use it correctly, you can get in trouble with your account, which isn’t a good way to start your credit foundation.
- A credit card is different from a debit card because you borrow against your balance and have to repay it vs. a debit card which deducts from the cash you have in your account. You want to practice spending using both and experience how they impact your finances.