Choosing a Credit Card for Families

Almost everyone has a credit card these days, even college students and teenagers. Not only are they handy in emergencies, they are actually a great way for parents to manage or inspect their children’s spending. Aside from the obvious low APR rate, here are some things to consider when getting a credit card for your family:

Choose a credit card with useful perks

If you are going to be using the credit card, you might as well be rewarded for it. So, before you apply for a credit card, see if they offer any rewards that will benefit your family as a whole. This can be especially useful if you shop at a certain store regularly, buy gas at the same place all the time, or eat at a favorite family restaurant. Here are some of the options to consider when you look for credit cards online:

•    Gas Cards: Save money at the pump with a gas card. Get a card that rewards you with discounted gas prices or cash-back rebates on gas purchases. Use the card only for gasoline, and you’ll keep the payments under control.
•    Travel Rewards: There are more rewards available nowadays than just frequent flyer miles. Some credit cards reward you with discounts on rental cars, accommodations, and even tickets to theme parks. Cardholders can take a cheap family vacation with these types of rewards.
•    Consumer Goods: Some credit cards will reward cardholders with discounts to their favorite stores. Other cards will give cardholders “points” for each purchase, which they can use toward consumer purchases. Either way, you’ll save money when clothing, feeding or entertaining your family.

Consider a Pre-Paid Credit Card

Unless you’re very wealthy, giving a teenager or college student a credit card with a very high limit is financially dangerous. It can be very tempting for them to indulge or buy impulse purchases. So, to teach your teenager or college student how to control their spending, get a pre-paid credit card. You can put as much money on the card as you want, and “recharge” it as often as necessary. Pre-paid credit cards give the student or teen freedom as to what they will spend their money on, but you still get to control how much. These are also great options for gifts.

Get a Card with a Low Credit Limit

Nearly all credit cards allow you to set a lower limit, than that set by the company. If a card has a $10,000 limit and you only want your teenager or student to have a $1000 limit, simply call the company and ask them to lower it. In most cases they will.
No matter what credit card you choose, you still should check your statement regularly. This way you can see what your family is spending its money on, and budget accordingly. There are many credit cards online to choose from which are perfect for families. Take the time to research them, and apply for a credit card that suits your needs.