Minor's Access to ATM Cards and Debit/Credit Cards: Age Requirements and Considerations
Many teenagers find themselves in a situation where they need access to financial services at an early age. This article explores the age requirements and options for obtaining an ATM card and other financial products such as debit and credit cards for minors. Understanding these requirements can help parents, guardians, and minors navigate the decision-making process effectively.
ATM Cards for Minors
Yes, a person can definitely get an ATM card before the age of 18. Typically, this is done through a joint account with a parent or guardian. Banks often offer accounts specifically designed for minors, often referred to as youth or student accounts. These accounts come with an ATM card that allows the minor to access funds, but the parent or guardian often has to be involved in account management. The specific age requirements and terms can vary by bank, so it's essential to check with the institution for their policies.
Recent Changes in Debit Card Issuance for Minors
Recently, parameters for the issuance of debit cards for minors have been relaxed. Now, a customer who is above 10 years of age can apply for a debit card in their own name. However, there may be some limitations on withdrawals and swipe transactions, and these can differ from bank to bank.
Age Limitations for Credit Cards
It's worth noting that at least 18 years of age is typically necessary for applying for a credit card. Anyone under the age of 21 must provide proof of emancipation or proof of independent income to show the bank that they are capable of repaying the amount they charge. If a minor cannot meet these requirements, they have a few options.
Options for Minors Seeking Credit Cards
If you are a minor and need a credit card, consider these options:
Prepaid Debit Card
One option is to get a prepaid debit card. This card can be charged by sending money to the card issuer, and then it can be used like any regular card where Visa or Mastercard are accepted. There is virtually no difference between a prepaid card and any other card, as long as the payment goes through. It's important to note that many prepaid card issuers only offer their cards to individuals who are above the age of 18. So, you will have to get a parent or a legal guardian to apply for the card under their name but allow you to keep and maintain the card using a PIN (Personal-Identification-Number).
Joint Account with a Parent or Guardian
Another option is to ask your parent or legal guardian to add you to one of their existing accounts with the bank they are signed up with, or they can open a new account specially designed for teens. They will need to submit a request to the card issuer to add you to their account, which would then result in a card being issued out to you. Keep in mind that they are now ultimately responsible for your account as they are your co-signer. If you abuse the card or default on payments, it could ruin their standing with the bank and have other serious consequences. Therefore, it's crucial to be mindful of your spending habits.
Understanding the requirements and options for minors seeking ATM cards, debit cards, and credit cards can provide clarity and help in making informed decisions. Always ensure to check with the specific institution for their policies and considerations.