Credit Card Offers For Minors
March 27th, 2008 by Ana
Monday, in response to my post on how credit cards were my biggest money mistake when I was a college freshman, reader blackneto sent me this email:
My 12 year old daughter received an offer for a credit card targeted at HS Seniors from 1st Financial Bank. (emphasis mine. -Ana)
I have a feeling she got it because she’s been in several programs through the local Community College and they probably sold their enrollments to whomever sends these offers out. Or she entered a contest or drawing at one of the events she’s been to and the list was sold from there.
This is a scary situation! I have very little doubt colleges are now selling their enrollments to credit card companies. After all, they let them on campus throughout the school year for money, so selling the enrollment information is the natural progression (anyone have a link for this?).
It’s also extremely likely it came from a contest or giveaway. Credit card companies are more than profitable enough to hold giveaways worth more than a free pizza, t-shirt, or hat (although that is usually all it takes to rope in the college freshmen). It could very well be that the giveaway was sponsored by a credit card issuer, and the fine print might have said that you agree to receive solitations. It wasn’t that long ago my son was 12 years old; I know they don’t read the fine print.
In my email response to blackneto, I suggested two things to help safeguard his daughter against identity theft:
- going to optoutprescreen.com and stopping any future credit cards offers. I have done this myself for hubby and I.
- If available in his state, putting a freeze on his daughter’s credit report until she reaches the age of 18. There is absolutely no reason for a 12 year old to have any credit activity, so freezing her credit report is a good step to prevent identity theft for minors.
So with the safety issues taken care of, let’s step back for just one second. Credit card companies have been targetting college students like nothing else for over a decade … but now they are going after high schoolers? Are they going to start showing up on our kids’ doorsteps the morning they turn 18 next? Tapping on their windows as the sun rises, with a huge smile saying: “Good morning! You are now officially an adult so fill out this credit card application!”
My son starts high school in the fall. I am beginning to worry that all my admonitions against getting into credit card debt may fall on deaf ears. There is an unbelievable amount of “peer pressure” out there that says you are somehow magically an adult once you get a little piece of plastic with a magnetic strip … and the debt that comes with it. Most of this pressure comes from the credit card companies’ marketing departments themselves. I am glad we just don’t watch much television, with its brainwashing barrages in 30 or 60 second doses during every commercial break (which seem much closer together than when I was younger).
Hey, I’m a mom; I’m allowed to worry needlessly. Blackneto is also a parent and is allowed to worry about this situation. If you are a parent, YOU should be worried about credit card companies trying to snare our young people into serious debt! The idea that college campuses are willing (and bought) accomplices should be a huge warning flag: WE as parents need to counter-brainwash our kids to “JUST SAY NO!” to credit cards.
Colleges across the nation don’t look out for our kids. They have already sold out, and the credit card companies can easily afford the proverbial “thirty pieces of silver” in each and every college town. Now it sounds like they are targetting our high schoolers.
Anyone else’s minor children receiving credit card offers in the mail?
Posted in college, credit cards |
March 27th, 2008 at 12:14 pm
I got my first credit card in college. And I can attest to the fact that they’re snakes waiting to bite.
March 27th, 2008 at 12:50 pm
I don’t have any kids yet, but I do remember when I was younger, maybe 10 years ago or so, someone tried to steal my little sister’s identity, and we started getting credit card offers for her. I know my mom put a freeze on her credit report. I don’t know if she did the same to mine. I think when we have kids I will freeze their credit from the day they are born. Like you said, no need for them to (ever if I can help it) have credit cards.
I also remember, around the same time frame, my mom telling me about how stupid credit card companies were, and how a friend of hers had a credit card in the name of his cat. Yes, his cat had a credit card. And her name was something cat-like: Princess or Meowsy, something obviously not human. He paid the bills and used it (obviously the cat didn’t), but no one ever questioned it. Strange.
I just recently found your blog and enjoy it a lot. I really like the budget for your son. I will have to remember that!
March 27th, 2008 at 1:45 pm
Love your site, but I have to disagree. One of the mistakes I think my parents made, was failing to help me establish a credit history when I was younger.
I am not advocating handing a 12 year old a credit card, but why not get a 16 year old a credit card - don’t even give it to her! Just charge things she needs that you would pay for anyway.
March 27th, 2008 at 7:36 pm
My daughter started getting credit card apps in the mail when she was 14 or 15. I’d shred ‘em along with the ones that came for me or my husband. She’s 18… moved out… and is still receiving them here. I continue to shred them.
March 27th, 2008 at 10:12 pm
we are going to do the opt outprescreen thing on monday for all 6 of us.
I checked into the credit report freezing thing. It’s asinine that you have to pay for it here in illinois.
It’s going to cost $30. $10 for each reporting agency. *4 thats $120 for all the kids. then it has to be paid again to be unfrozen.
I think we will just pull a free credit report for them right now and see if there’s anything that warrants it.
@Evan - I disagree. I never had a CC till I was 26 years old. but I was able to get personal loans and a car loan with decent rates before then.
March 27th, 2008 at 10:53 pm
neto: I knew about the cost, but I still think it would be worth it to go ahead with your 12yo daughter. This will be the best defense against hassles with potential ID theft: “What account? That credit report is FROZEN because the individual is a minor!” It will shift all the blame to any company stupid enough to open an account without checking the credit.
March 28th, 2008 at 7:58 am
I read a lot of pf blogs and are always amazed that people blame the banks and the credit card companies for everything. Yes, I use credit cards, it is convenient and helps me to budget. I get lost of mony back each year by using the cash back function and in many cases the credit cards extends warranties on high ticket items. I pay my cards off each month and never have any worries about the interest rate as I do not use it as a loan. I have also made lots of money by using zero % offers.
Do not always blame someone else for your bad choices. Nobody is forcing a student or anyone else to apply for credit cards or to use them without being able to pay the balance. Use common sense when dealing with money.
Congratulations on those who can live debt free or dig themselves out of a hole. Maybe common sense kicked in late for you, but at least you fixed your behaviour (the banks did not change theirs).
March 28th, 2008 at 8:18 am
klippies: I have acknowledged my part in my personal financial mess in previous posts on this blog. However, your statement: “Nobody is forcing a student or anyone else to apply for credit cards or to use them without being able to pay the balance.” just does not sound right to my ears. Are you saying it is the students’ faults for being young, impulsive, naive, and often uneducated about money? That the credit card companies are blameless for taking advantage of that? Oh heck, this requires its own post…
March 28th, 2008 at 8:50 am
[…] Credit Card Offers For Minors […]
March 28th, 2008 at 9:28 am
No, parents are obviusly responsible to teach their kids about finance. But banks are only doing business to make money just like any other business. It is comparable to saying guns kill as opposed to people use guns to kill. The credit card (or company) does not get anyone into a mess, it is mostly that persons actions. And it is not only college kids, but stupid older people too.
Are the credit companies taking advantage of stupidity? Sure, they are. Just like any company uses advertising to entice people to buy their product. It is the consumers job to sift through any offer and decide if it is good or bad. That will be part of the capitalist system for a long time.
What gets me of some people is that people generally tend to blame the banks for their problems. (like the current mortgage mess)
March 29th, 2008 at 8:27 am
I gave my oldest son a credit card that we were both on in his last year of high school, for travel purposes. He still uses that one in college. This helped him get a couple of department store cards since. I watch the one I am on and he is very good about minimum charges and full payment each month. We have had many discussions about credit, hopefully this will help him through out his life.
My youngest son will probably take more watching.
March 29th, 2008 at 9:32 am
Re: “WE as parents need to counter-brainwash our kids to “JUST SAY NO!” to credit cards.”
That’s all fine and good, but then your kids go off to college and exercise free will. They may disagree with you. Do the best you can and refuse to bail their butts out if they get themselves into trouble. The bailout teaches dependence and irresponsibility and delays the learning curve. If they get in over their heads, and ask for the bailout, tell them, I completely trust you to solve this problem you’ve got yourself into. I can give you ideas of what to do, but I expect you to decide for yourself and follow through for yourself, just like you did when you ignored my warnings about credit card and debt. Congratulations on learning that this is a cause-and-effect world!
March 31st, 2008 at 6:01 am
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March 31st, 2008 at 5:58 pm
Klippies can say that they are fine using credit cards and paying them off every month. BUT…
Problem is that when a person uses a credit card or even yes believe it or not a debt card for buying stuff they have a tendency to spend 20-40% MORE than if they were to use cash!
Not a big surprise that there are even vending machines that will take credit cards now! Well I was just gonna get a soft drink, but hey I might as well get me a bag of chips and a chocolate bar too if I gotta use my card! That is how they get you! McDonalds did the math and they now have credit cards to pay for food too! Unfortunately those cards with 1% back and stuff like that are maybe great for giving you back cash, but when you overspend by 30% to get that 1%? not smart…
Do what you want. I am not your keeper, but if ever anyone reproduces with me, they will be debt free, and our kids will learn about $$$ and especially about credit cards!
April 2nd, 2008 at 1:42 pm
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