How Old Should Kids Be to Get a Credit Card?

I couldn't believe my eyes...my 9 year old daughter got a credit card application in the mail!

How is that possible? I know that teens as young as 17 years old regularly get credit card applications stuffing their mailboxes...but a 9 year old?!

Just for the fun of it, we tried an experiment. I had my daughter fill out the application listing her $24 monthly allowance as income and sent it in. Luckily whe was denied - but the letter encouraged her to "reapply in 1 year"!

Something I didn't think about at the time - will this rejection be on her credit report...does she have a credit rating? I'll let you know when I find out.

So how old should your kids be to get a credit card? It really depends. Here are 3 "rules of engagement" I judge my own 2 teenagers:

1) Are they responsible with their money on saving, spending, and investing for the long haul?

2) Do they have a reliable job or source of income?

3) Do they understand the importance of only buying things on credit that they are able to pay for at the end of the month?

If you answer yes to all three of these questions...then your teen is ready to "test" out having a credit card. Expect mistakes though - and having to cut up their card into a million pieces!

You can give them another chance later.

What are your thoughts on credit cards for kids?

Sonja