Q: I’m a teen and would like to get a credit card, not to carry debt but because I want the benefits and convenience. Is this possible?

A: Thanks for your email and I can completely relate to your situation – I felt the exact same way when I was in high school. I’ll go through and explain your options:

First of all, there is technically no such thing as teen credit cards, because federal law requires you to be 18 or older to get credit in your own name. That being said, if you’re under 18 there are a few ways you can get a card with the help of a parent. If you’re 18 or over, you have even more options.

Option 1: Having a parent add you as an authorized user
One option is for parents is to add their teenager as an authorized user on their credit card. When this is done, a second card is issued in the teen’s name, and all purchases made with it are shown on the parent’s account.

This method can be beneficial for the parents because it allows them to see exactly where their kid is shopping and how much money they’re spending. Typically the parent also can specify a limit on their teen’s credit card. For example, maybe the parent’s account has a $5,000 limit but they only allocate $200 of that per month for their son or daughter. It can also be a great way for the parent to teach money management and budgeting. When it comes to getting credit cards for teens, this is probably the most popular approach.

Option 2: Using a prepaid card
Prepaid cards work like this – you add money to your account and you’re allowed to spend up to that amount. For example, if you added $100 to your prepaid card, then you would be able to spend $100. So technically these aren’t credit cards, but more similar to debit.

The obvious benefit is that they make it impossible for someone to spend more than they have, however the downside is that they typically carry high fees, offer few benefits, and no rewards.

An alternative to prepaid cards would be to simply have your parent co-sign on a bank account for you that came with a debit card. However going that route also has drawbacks – you would be charged hefty overdraft fees if you spend beyond your balance.

Option 3: Getting a student credit card
If you are 18 years of age or older, there are many student cards on the market that are specifically tailored to those that have little to no credit history (as is the case with most 18 year olds!).

However due to recent new laws, credit cards for teens and young adults 18 to 21 years old come with extra stipulations. Applicants in that age range must have the “independent ability to make required minimum payments.” What does that mean exactly? Well, it means you either have to have a co-signer or have “sufficient income.”

As to what “sufficient income” is, every issuer has different requirements. There is at least one major issuer that considers just $2,000 income per year as “sufficient income.” Reportedly, some issuers tell applicants to include parental contributions, grants, and scholarships as part of their reported income… which in all honesty doesn’t make sense, since things like scholarships are not money you can just spend on yourself! The government should set stricter and clearer guidelines for this.

If you’re 18 years of age or older, Credit Card Forum maintains a constantly updated sponsored listing of the best student credit cards