According to the Associated Press, 84% of undergraduates had at least one credit card in the 2008 spring semester and half of college students had four or more credit cards. Seniors had average credit card debt of $4,100 when they graduated. Due to recent credit card legislation, unless your kid has enough income to pay monthly credit card bills, he/she cannot get a credit card without you or some other adult serving as a co-signer. Should you do it?
Let’s see. First, you are just as responsible for paying it back as the other person. Second, even if your teen promises not to charge up to the limit it could still happen. So, if you really want to help your kid begin establishing a credit history, FoxBusiness.com suggests considering a secured credit card. This type of card requires a deposit of about $250 to $500 into an account in order to receive a credit limit for the same amount, preventing credit card debt and building credit history along the way.