It depends on the teenager. Getting a credit card for emergencies or to establish credit can be beneficial if the balance is repaid each month. If you carry a balance, you are paying interest on purchases, which can add up and increase your debt. If you do not think you would be able to control using the credit card, hold off on getting one or start off with one that has a very low credit limit and do not accept increases on that limit. Also, choose a card with a low interest rate, a grace period, and no annual fee.
Since February 2010, credit card applicants under age 21 need proof that they have an income or a parent or someone over age 21 to co-sign their credit card application. In addition, there are defined limits on the amount that they can borrow.
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