AmEx offers credit card application to three-year-old
They say building a good credit history early is wise financial sense.
So, even though you’re young and can’t fully realize the risks of high-interest debt, if you can make a big purchase – a TV, furniture set or monthly cable bill – and pay it off with your credit card, it might be smart to do so.
Still, such advice generally applies to consumers 18-years or older. American Express, it appears, wants to reach the world’s spenders sooner. They just offered a credit card application to a three-year-old.
Yes, in a story that’s getting some good online pub, a CNN Money writer’s three-year-old daughter recently received an AmEx card application in the mail.
The offer was a mistake, of course (though it says something about the state of consumerism that it took the CNN scribe’s calling American Express just to make sure), but it goofily brings up a time-honoured debate: when is too young to get a credit card?
Eighteen is the age when Canadians can legally sign up for a bank card, yet many issuers will allow kids to become authorized users for their parents’ cards as early as 13.
At this age, credit cards only come “for emergencies only” or in the form of prepaid. Many U.S. companies, CNN notes, give prepaid cards in the interest of early financial education, but parents are on the hook for all charges levied on the card.
I know many people that resist credit cards well into their 20s. Then, of course, there are those that sign up right as they turn 18. There’s no right answer.
When do you think is the right age to begin responsibly using a credit card?
By Jason Buckland, MSN Money
Posted by: Bernie | Jan 17, 2022 9:11:26 AM
Americian Express did one better for my 8 year old son, they actually sent him a credit card.
Posted by: momo | Jan 17, 2022 9:44:09 AM
It's always best to have cash. It's practical, anonymous and cheaper. It's also what you really need in the case of an emergency.
Posted by: MAURICE | Jan 17, 2022 10:35:26 AM
I think Jim Flaherty had better look at his own debt first and leave us a loan we can look out for are selfs
Posted by: Mum | Jan 17, 2022 11:54:36 AM
My daughter has been receiving Visa applications before she even turned 1. She still gets them even after I called them to tell them to stop...she's a baby!
Posted by: Mum | Jan 17, 2022 12:07:53 PM
Should add that it also adds to the concern of identity theft...for a 2 year old!
Posted by: karen | Jan 17, 2022 12:59:42 PM
i think it is absoloutly disgraceful that credit card companies can get away with this, the government should stop this ridiculousness right away, it is almost comical that this is being allowed, so many problems associated with this, i guess this is the perfect example of why our economy is the way it is!!
Posted by: Dan | Jan 17, 2022 1:05:59 PM
Well, can you blame them? If they can get away with irresponsible financial decisions by the parents, it's no surprise that the would try to offer this to the kids as well! Maybe the irresponsible parents who get themselves into credit card bill messes might get their kids into the mess as well, and then the credit card companies can make money off the whole family!
Posted by: rob | Jan 17, 2022 1:50:16 PM
Maurice,
While you may be able to make decisions for yourself...sadly that is not the case for many Canadians. I am dreading the potential in the future for overly stretched Canadians bringing down our economy and hurting the portfolio of the responsible Canadians.
Did you read the new guidelines and restrictions....if you have a problem with that in this current economic climate with rate hikes to come in the future...maybe you aren't capable of deciding for yourself.
Posted by: shaun | Jan 17, 2022 2:34:54 PM
I have to say offering credit cards to kids is just plain silly. Most people really don't understand how to handle money untill they have worked for a couple of years and have had to make it on their own. I would say though that it's important that you do get a credit card when you are 18, as it helps to build a credit rating. From personal experience I got a visa at 18 and always payed it off every month and when I turned 22 and went to the bank to get a loan they looked up my credit history and they were very impressed and I was able to purchase my first house without any kind of a co-signer. I know several of my friends who never had any kind of credit card till they were in their 20's and when they went to the banks to get loans, the bank wouldn't even look at them without having a co-signer.
Posted by: Jeff | Jan 17, 2022 3:12:09 PM
One thing that I find funny about this article is that it seems to treat this as something new. I have been reading stories similar to this for years. At least these are for humans, I heard of one case where a person got a credit card for their dog. Of course in this case they did fill out an application but still......
Posted by: Catherine | Jan 17, 2022 4:11:51 PM
I agree with Rob, many people who get credit cards, look at it almost like free money, till the bill comes in then reality comes crashing down on them, they dont pay, or pay just enough to cover the interest and never pay it off, i run a business and i still prefer to use cash, its straight up, paid, no intrest, no stories, no bs, (you just gotta watch for fakes) It kills me when i see people bitching about the amount they owe to their credit card, when they themselves are responsible for using it so much. ... and as far as kids being offered credit cards, i have been getting offers since i was 9, makes you wonder how safe our information really is if all these companies know who are kids are and where they live before they are even able to spell their own names......
Posted by: Anne Heyes | Jan 17, 2022 5:28:44 PM
This is in response to Shaun - It is crazy that people in their 20's who did not have any credit cards at a younger age cannot get a mortgage, but if you just land here in Canada then you get 'special deals' and there are no problems getting a credit card or mortgage ------makes me angry at the way the system works
Posted by: loosegovernment | Jan 17, 2022 5:46:28 PM
makes you wonder just why our government is selling our personal information off to anyone who asks but if you want information about yourself personally they wont give it to you without a six month runaround and that's if it's "legal" for them to give it to you. just what kind of government keeps secret files on their general public that the general public can't self audit. kind of reminds you of a government that once existed pre-1945.
if you want to protect yourselves and your children from what may be corporate ownership of your souls, people need to start asking why a government that is so self interested in making a buck, which by the way seems to disappear faster than our personal info, keeps getting re-elected.
Posted by: loosegovernment | Jan 17, 2022 5:57:15 PM
in a more related response to the article, if the credit company sends your kid an application take it as a learning experience (for them and the credit company) let them fill it out in crayon with whatever info they feel and see if they get a card. if a card does come drop them off at a store, don't go in with them, and if they can figure it out (after watching mommy or daddy do it it shouldn't be harder than driving) let them rack up the card on whatever they feel they would like to buy. then sit back and let the credit company try to explain to a judge just why they feel you should be responsible for a credit card that they fulfilled to your underage child and "knew nothing about."
Posted by: Daniel | Jan 17, 2022 6:16:52 PM
I use my credit card everyday. But i keep all of my receipts and before i go to bed i go online and pay for everything i spend on my credit card. I just force myself that the card is a debit card not free cash...I get HUGE awards doing that.
Posted by: stas poymenov | Jan 17, 2022 6:21:10 PM
How the hell do they even get info that you have a child? they shouldnt even know that but they still send applications???? second i really think school systems should start educating kids about credit and how to use credit cards as well as managing money before they turn 18, and can legally get a credit card.
and if your child is offered a credit card before 18 i think there should be a legal action you can take, maybe there is as they invade your privacy.
Posted by: katie | Jan 17, 2022 7:29:50 PM
My brother got a card when he was 5 and a couple of years later our dog got one...
Posted by: SP | Jan 17, 2022 7:36:32 PM
Children aren't the greatest concern here. Did you hear that they've given credit cards to elected official AND Bankers? It's enough to have one break out in a cold sweat
Posted by: JN | Jan 17, 2022 8:06:57 PM
My dog also received one. She had died the previous week, but would have been happy to know that she had been pre-approved for $10K. Just about enough to cover her lifetime vet bill.
Posted by: Richard | Jan 20, 2022 2:26:30 PM
Maybe the 3 year old would have been more responsible with her credit card than her parents or many other these days. Come on and take the FREE ride... except you'll be paying for it the rest of your life.