Building Credit

• Part of your credit score is based on how long you have had credit and how reliably you have made your payments. Having a credit card when you are a teenager can help establish your credit so you can qualify for better rates on loans in the future.
  
  

Security

• Having a credit card is advantageous because, if it is lost or stolen, you are not responsible for unauthorized charges when you notify the card company.
  
  

Education

• Having a credit card as a teen should be a learning experience to help him understand how credit cards work. This experience can prevent him from burying himself in a mountain of debt later on.
  
  

Fees

• Some credit cards have annual fees and most have charges for going over the credit limit or making a late payment. Some cards even have transaction fees each time you use the card.
  
  

Spending

• It can be harder to restrict a teen's spending with a credit card than if you just give them a limited amount of cash. If you are a co-signer on a teen's card, you can be held responsible for the payments.