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Credit Card Applications » News » Other » Education on Credit

Education on Credit

March 13, 2008 | Updated on March 13, 2008
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The content is accurate at the time of publication and is subject to change.

Credit Card Applications through the Better Business Bureau

The next generation is the "generation of plastic money" as they call it. If some years ago, a credit card was first obtained not earlier than at the age of majority, then today a plastic is available to schoolchildren already. Evidently, it has become the major concern for parents to guard their children from all those numerous mistakes and bad credit habits that they themselves were exposed to when young and inexperienced.

The question is what is the quickest and most effective way to teach a child efficient credit management?

How can a parent without the proper qualification give his/her child a fast start to a credit file and the right guide to successful plastic business? There is good news for parents with children drawn to credit, and it comes from the Better Business Bureau.

Better Business Bureau is a non-profit organization in Mississippi working at improving the relationship between businesses and the public through information. Educating on credit cards has become one of the most burning missions of the bureau in the light of the current credit crisis and ever growing credit insolvency and debt.

If you are a parent whose child is about crazy to seize that popular virtual and "never ending", as many think, plastic money, turn to the Better Business Bureau to see their advice on the parent's smart strategy.

Before you let your child get absorbed in the world of plastic money, the Better Business Bureau suggests you do the following:

  • Your child must be dreaming about getting instant approval for a plastic and going credit card shopping right now. Don't admit a thought of it even. The fist thing is to establish a saving or a checking account in the child's name and to teach them to manage finances and learn the importance of money and saving it.
  • Step two is to apply for a debit card in your child's name. It looks just like a plastic credit card but in comparison with it, the debit card is like a plaything. It trains the teen to understand and manage account balances and polish their spending patterns.
  • Step three. If your child doesn't qualify for a regular bank account to get a debit card, get him/her a pre-paid credit card. It is in essence a debit card but doesn't require a PIN to access funds. Just like with a debit card, you are only able to spend as much as you have "loaded" onto the card and it protects youngsters from falling into debt. One more advantage of a prepaid credit card is the protection from overdrafts (see article on using credit for overdrafts) that is a common case with all debit plastics. No hassle of cashing a check is a convenience for a teen, isn't it?
  • However, as a prepaid credit card doesn't have a line of credit, it does not report to credit bureaus and so, does not build credit history. This card is just for the convenience of carrying money in electronic form. To let your child establish credit file, have him/her apply for a secured credit card. It is an essentially a credit card but requires a beforehand cash deposit to collateralize the credit line.

A secured credit card is the last point of preparation and the first step for the real credit card application and full-blown credit career. As a parent, you must be seriously concerned with your child's financial wellbeing. If so, make use of the Better Business Bureau advice and help your teen be a success on the hard way of managing credit and finances.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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  • Larry
    With the Virgin / Barclaycard signature offer, there seems to be some consumer deception or maybe even outright fraud goin on.   I decided to jump on this offer..  read all the info on it..  was approved for their platinum card, paid the fee, then was only awarded 10,000 points instead of the advertised 20,000.   When i inquired about the less than advertised bonus points, Barclaycard claims only Signiture Visa cardmembers get the 20,000..  as a platinum cardholder, you don't qualify for that level of bonus, so you get 10k instead.   Well, in their current ongoing promotions, it states plain as day that....    Applicants approved for the Visa Signature or Platinum Card with $49 annual fee will receive 20,000 Bonus Points awarded to your Virgin America Rewards Account at the close of the first billing statement in which you make your first purchase or balance transfer (that is not returned or rescinded) and have paid the Annual Fee on the account (and such fee is not rescinded). They don't mention anything about a separate program for platinum cardholders..  However, trying to get someone to resolve this issue with either Virgin or Barclaycard seems to be rather impossible.. Seems to me they're simply drawing people in with the fraudulent offer, then simply saying, oh, we're sorry you don't qualify..  but thanks for signing up for our garbage credit card with insane fees..   
  • CreditLandCom
    Thank you for sharing your experience with us. We have reviewed this offer and you are correct, nowhere it is mentioned that 20,000 Bonus can become a 10,000 Bonus all of a sudden... We will mention this in our review of this card so others can make an informed decision. Another way to get Virgin miles is to get an American Express charge card: The Business Gold Rewards Card® now offers 50,000 Miles, though you do have to spend $5,000 in the first three months of card membership to get it. It also has $0 introductory annual fee for the first year, then $175. Premier Rewards Gold Card now offers 25,000 Miles, though you do have to spend $2,000 during your first three months of Card membership. It also has annual fee of $0 for the first year, then $175. While we do not know If any of these offers make sense to you, we are at least sure that you will get advertised bonus in full if you decide to get them... Conversion rates for Virgin America are: 100 Elevate Points = 200 Membership Rewards® Points All the best.
  • Deborah Ellsworth
     would very much like to start a new credit history  by making payments on time I would tohave a credit card that is NOT PREPAYID! I don't need a card with a high limit just something to start a new credit history. Thank You Deborah Ellsworth
  • Deborah Ellsworth
    I would very much like to start a new credit line to get back on track. I DO NOT WANT A PREPAID CARD!! This new credit card if I am approved does not have to hace a high limit just something for me to start over again and prove myself ThankYou. D Ellsworth
  • Miss Edna
    there is a huge problem with the RFIP chip: it is easily compromised. There are already 'readers' in the form of what looks like a cellphone in a case, that scans all the info in the chip by merely walking near a person -- this 'reader' penetrates leather, cloth, spandex, etc. The only thing it will NOT penetrate is METAL. Perhaps one has seen commercials touting metal credit card cases. Here is my hint for a free fix: cut a piece of aluminum foil or use the foil that is used to keep foods fresh, like coffee. Cut it so that when folded once, it forms a sleeve for your credit card. place the credit card in the sleeve, then place the sleeve in your wallet.
  • Robin Parks
    I am looking to apply for the AARP Visa signature card from Chase that offers $100 after spend $500 in first 3 months, no annual fee and 0% interest first year; I don't want to mail in offer because of having to write in Social security #. Can you direct me to the proper on-line site?
  • CreditLandCom
    The Chase bank cards are not currently available at, but you can consider applying for the Citi® Dividend Platinum Select® Visa® Card - $100 Cash Back. The cards has similar terms and cash back program.
  • Becky
    This is Becky Now what do I do just waqit for acard to come to me?
  • CreditLandCom
    Once you have applied, you should receive a letter within 10 business days letting you know if you were approved and when your card will arrive. If you did not receive any letter or notification from the issuer, you should contact them directly. Also, you should contact the issuer if you’ve been waiting for your credit card longer than 30 days. Since we are not a bank and don’t issue credit cards, we cannot give you any information about your application or credit card.
  • SavingStar
    Thank you for posting about SavingStar. Just to clarify one sentence in your article, we have over 5 million members (not 500). Thanks, Josh
  • CreditLandCom
    Sorry for the misprint. We’ve corrected the sentence. Thank you for noticing that.
  • Eric
  • John Stifler
    I think almost all people that familiar with internet, will hardly fall to these scams, but for now, I think people that use computer but don't familiar with internet things, and they has a phone line at their home, they should be warned more than internet users. I think senior people usually got scammed by these kind of "tech support" scams. Found so many reports about them since years ago at complain board sites like We as younger, and know more about this stuff, should help and share information to they who needed it, especially older people.
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