10 Best Credit Cards for Teens: Can They Teach Good Money Habits?

One of the best things a parent can teach their child is how to manage money at an early age. A good way to start is by giving them a credit card for teens as soon as they seem ready to take on greater responsibility. 

But can a minor get a credit card? Since banks in the Philippines typically don’t issue primary credit cards to individuals below 21 years old, you can apply for a supplementary credit card for your teenager instead. 

If you’re undecided on whether a credit card is a good idea for your child, or if you’re already looking for the best credit card for teens, this guide will walk you through different options. 

Pros and Cons of Giving Your Teen a Credit Card

When choosing the best credit card for minors, make sure to consider all the pros and cons before making a final decision. Remember, while giving a teenager access to a credit card is not inherently bad, it also comes with risks that you must be prepared for.

👍 Pro: A Chance to Learn Financial Responsibility

Financial responsibility is not a subject taught in schools. Instead, it’s a lesson learned usually at home. 

Before your child becomes a full-fledged adult, you can teach them good money habits by getting them a credit card for teens. A simple plastic card can be a source of many lessons about financial responsibility and discipline. 

From financial concepts like compound interest and credit score, to financial skills like delayed gratification and budget management—there are many lessons you can teach your child to help them build a healthy mindset towards credit cards and money in general. By talking to them about these concepts early on, you can help them make better financial decisions in the future.

👍 Pro: Extra Funds for Emergencies

Emergencies happen when you least expect them. Getting your child a credit card can help them in times of dire need as a credit card can serve as a safety net for when they need extra funds for important unplanned expenses. 

For example, a credit card can come in handy for medical emergencies. Your teenager can use it to buy medicine or pay for outpatient services when their regular school allowance can’t cover these costs.

A credit card for minors can also serve as a buffer for other expenses. For example, your teenager can use it to pay tuition, buy project materials, and fund other school expenses. 

Ultimately, by getting your child a credit card, you also buy yourself peace of mind as you know your child always has access to extra funds when they need it. 

👍 Pro: Secure and Safe to Use

Using a credit card is a lot safer than paying with cash. Credit cards come with superb security features that cash and debit cards just can’t keep up with. For example, should your child’s credit card get lost, you can always have it blocked and get a new credit card for teens.

👍 Pro: Tracker for Your Kid’s Expenses

Since most credit cards for minors are supplementary cards, your kid’s transactions will be added to your monthly billing statements. This way, you can monitor your kid’s spending habits and give them advice that will help them form good financial habits.

👎 Con: Risk of Overspending

Giving someone a credit card linked to your account is always a risk, even if it’s a trusted family member. Be prepared to shoulder the charges your teenager incurs over time and make sure to have safeguards in place (i.e., credit limits, remote credit card control, etc.) to avoid the worst-case scenario.

👎 Con: Risk of Your Credit Score Plunging

Imagine if they rack up a huge debt using the supplementary credit card you gave them and they failed to make the minimum monthly payment. Since their account is tied to yours, your credit score might be affected in a bad way. It might plunge because of your teenager’s overspending. 

Don’t let their credit card training be the result of you losing your credit standing to your bank. To avoid this, make sure to set up an automatic payment scheme so that your kids don’t miss a single monthly payment. Most banks offer this service online. 

Signs That Your Teen Is Ready for a Credit Card

While you can actually give your teenage kid a credit card, you have to do it at the right time. Here are some tell-tale signs to help you figure out the right time to give them that card.

✔️ They’re Financially Savvy and Independent

If you’ve taught your kid the value of frugality and resourcefulness at an early age, chances are, when they hit adolescence, they’ll be more financially responsible than other kids their age. 

Is your kid saving up for things they want to buy for themselves? Are they budgeting their weekly allowances wisely? Do they know the difference between needs and wants? 

If yes, then they’re ready for the bigger responsibilities that come with owning a credit card.  

✔️ They Have the Means to Pay Off Their Bills

If your teen makes money from part-time jobs, you can have them cover their own expenses that appear in your monthly statement. That way, they’ll learn how to budget and set aside money for recurring financial obligations. This will also encourage them to limit their credit card expenses to avoid significant deductions on their monthly salary.

✔️ They’re Aware of the Purpose of a Credit Card

Credit cards for minors can come in handy during emergencies, but there’s also a risk of them being misused by youngsters. Here are some questions to ask them to help you evaluate whether they are ready to be trusted with the privilege:

• Why do you need a credit card?
• Where would you like or need to use a credit card?
• What are the items you would buy using the card?
• Would you rather have a credit card or cash allowance?
• Will you face the consequences if you reach your credit limit or max out your card?

These questions will give you an idea about your teen child’s perception of having a credit card of their own.

✔️ They’re Away for College

Teens in college, especially those living far from home, will inevitably encounter emergencies that will require them to shell out money. To help them deal with financial setbacks, you can let them have a credit card for emergency use. Just make sure to set boundaries and remind them of their limits. 

✔️ You Have the Means to Cover Additional Expenses

After evaluating your teen, consider your own capabilities. It goes without saying that you shouldn’t get your child a credit card for minors if you yourself are struggling with credit card debt. 

If you’re planning to give your teen a supplementary card, be prepared to cover the additional expenses that they’ll incur. If you don’t have the means to accommodate those expenses, it’s best to think things through again and park your plan of getting your teen a credit card.

10 Best Credit Cards for Teens

Now that you know the pros and cons of giving your teenager a credit card, it’s time to compare options that will suit your teenager’s needs. Here are some of the best credit cards for minors under 18 years old:

💳 UnionBank Rewards Credit Card

Key Features and Fees

• Maximum supplementary cards per account: 2
• Age requirement for supplementary cardholder: At least 14 years old
• Minimum monthly income requirement for principal cardholder: ₱15,000
• Annual fee:
  • Primary: ₱2,500; no annual fee when you apply until January 31, 2024 and meet the minimum spend
  • Supplementary: ₱1,250
• Interest rate: 3%
• Late payment fee: ₱1,000
• Overlimit fee: ₱500

One way to introduce credit cards to teens is to show them how every swipe can be rewarding. Getting a UnionBank Rewards Credit Card is a good way to start because every ₱30 spend earns you 1 rewards point easily. Plus, if you apply until January 31, 2024 and spend at least ₱20,000 within 60 days of card approval, you can avail of no annual fees for life. 

Couple that with all the Unionbank credit card promos out there and you’ll be able to provide your child a full credit card experience that’s both convenient and rewarding. And while you’ll have to share your credit limit with your supplementary cardholder/s, you can set a credit limit for them so you can still have full control of your credit line.^[1]

💳 Metrobank Titanium Mastercard^®

Key Features and Fees

• Maximum supplementary cards per account: 4
• Age requirement for supplementary cardholder: At least 14 years old
• Minimum monthly income requirement for principal cardholder: ₱15,000
• Annual fee:
  • Primary: ₱2,500; no annual fee when you apply until February 29, 2024 and meet an annual spend of ₱180,000
  • Supplementary: ₱1,500
• Interest rate: 3%
• Late payment fee: ₱1,000 or unpaid minimum amount due, whichever is lower
• Overlimit fee: ₱750

If you want a credit card for teens that’s convenient for both you and your child, consider applying for Metrobank Titanium Mastercard^®. Apply now until February 29, 2024 and spend at least ₱180,000 annually to avoid annual fees. 

Plus, claim your Moneymax Metrobank welcome gift when you apply and get approved!^[7]

💳 Metrobank Platinum Mastercard^®

Key Features and Fees

• Maximum supplementary cards per account: 4
• Age requirement for supplementary cardholder: At least 14 years old
• Minimum monthly income requirement for principal cardholder: ₱58,333
• Annual fee:
  • Primary: ₱5,000; no annual fee when you apply until January 31, 2024 and meet an annual spend of ₱400,000
  • Supplementary: No annual fee for the first approved cardholder
• Interest rate: 3%
• Late payment fee: ₱1,000 or unpaid minimum amount due, whichever is lower
• Overlimit fee: ₱750

Step it up a notch when picking a credit card for minors and get a Metrobank Platinum Mastercard^®. For starters, you get no annual fees when you apply now until January 31, 2024 and meet a ₱400,000 annual spend requirement. Plus, get access to a stack of Metrobank credit card promos wherever you are in the world.^[8]

💳 HSBC Red Mastercard

Key Features and Fees

• Maximum supplementary cards per account: 4
• Age requirement for supplementary cardholder: At least 15 years old
• Minimum monthly income requirement for principal cardholder: ₱16,667
• Annual fee:
  • Primary: ₱2,500
  • Supplementary: ₱1,250
• Interest rate: 3%
• Late payment fee: ₱1,000 or unpaid minimum amount due, whichever is lower
• Overlimit fee: ₱800

Another great credit card for minors in terms of rewarding experiences is the HSBC Red Mastercard. You only need to spend at least ₱20 to start earning a point. You can also get four times the bonus points in online, dining, shopping, and overseas transactions. 

And if you avail of the Moneymax HSBC promo and get approved, you get an exciting welcome gift!^[2]

💳 HSBC Gold Visa Cash Back

Key Features and Fees

• Maximum supplementary cards per account: 4
• Age requirement for supplementary cardholder: At least 15 years old
• Minimum monthly income requirement for principal cardholder: ₱16,667
• Annual fee:
  • Primary: ₱2,500
  • Supplementary: ₱1,250
• Interest rate: 3%
• Late payment fee: ₱1,000 or unpaid minimum amount due, whichever is lower
• Overlimit fee: ₱800

If you want to teach your kids the importance of getting a good deal, then the HSBC Gold Visa Cash Back is a good credit card for teens. It earns you 5% cash back on dining transactions and 0.50% on everything else. 

Plus, if your teenager drives a car, they also get a 6% rebate on their first Caltex fuel spend and a 3% rebate all year round.^[3] 

💳 HSBC Platinum Visa Rebate

Key Features and Fees

• Maximum supplementary cards per account: 4
• Age requirement for supplementary cardholder: At least 15 years old
• Minimum monthly income requirement for principal cardholder: ₱41,667
• Annual fee
  • Primary: ₱5,000
  • Supplementary: ₱2,500
• Interest rate: 3%
• Late payment fee: ₱1,000 or unpaid minimum amount due, whichever is lower
• Overlimit fee: ₱800

Another great credit card for minors who share your love of travel is the HSBC Platinum Visa Rebate. Instead of giving your child a travel allowance, you can just give them a supplementary card.

They can get a 5% rebate on shopping and travel spend, up to 6% rebate on Caltex fuel spend, and free travel insurance up to ₱10 million.^[4]

💳 Security Bank Gold Mastercard

Key Features and Fees

• Maximum supplementary cards per account: 5
• Age requirement for supplementary cardholder: At least 16 years old
• Minimum monthly income requirement for principal cardholder: ₱30,000
• Annual fee
  • Primary: ₱2,500 (free for the first year)
  • Supplementary: No annual fee for the first approved cardholder
• Interest rate: 3%
• Late payment fee: ₱1,000 or unpaid minimum amount due, whichever is lower
• Overlimit fee: ₱500

Want to get your teenager a credit card but don’t want to spend more on annual fees? Then you should get a Security Bank credit card—the first approved supplementary cardholder gets no annual fees for life, making it a good credit card for teens. 

If you avail of the Moneymax Security Bank promo, you can also get a welcome gift.^[5]

💳 Security Bank Complete Cashback Mastercard

Key Features and Fees

• Maximum supplementary cards per account: 4
• Age requirement for supplementary cardholder: At least 15 years old
• Minimum monthly income requirement for principal cardholder: ₱65,000
• Annual fee
  • Primary: ₱3,000 (free for the first year)
  • Supplementary: ₱1,500
• Interest rate: 3%
• Late payment fee: ₱1,000 or unpaid minimum amount due, whichever is lower
• Overlimit fee: ₱500

If you want your teen to earn more cash back with every swipe, Security Bank has the perfect choice: the Security Bank Complete Cashback Mastercard. With this card, your teenager can get 5% cash back on groceries, 4% cash back on fuel, 3% cash back on bills payment, 2% cash back on dining, and 1% cash back on shopping. This makes it another great credit card for minors.^[6] 

💳 BPI Amore Cashback Card

Key Features and Fees

• Maximum supplementary cards per account: 6
• Age requirement for supplementary cardholder: At least 13 years old
• Minimum monthly income requirement for principal cardholder: ₱15,000
• Annual fee
  • Primary: ₱2,050
  • Supplementary: No annual fee for the first approved cardholder
• Interest rate: 3%
• Late payment fee: ₱850 or unpaid minimum amount due, whichever is lower

If your teenager frequently hangs out at the nearest Ayala Mall in your city, have them run errands for you using a BPI Amore Cashback. 

Why? Because this credit card gets you and your kid 4% cash back on supermarket and department store spend, and 1% cash back on drugstore and bills payment spend. Plus, they get access to special Ayala Mall perks.

Another great thing about getting a BPI credit card is that it comes with a BPI E-Credit Card you can use for online purchases. So whether your teen prefers to shop online or in-store, the BPI Amore Cashback Card makes a great credit card for minors.^[9] 

💳 AUB Classic Mastercard

Key Features and Fees

• Maximum supplementary cards per account: No limit
• Age requirement for supplementary cardholder: At least 14 years old
• Minimum monthly income requirement for principal cardholder: ₱50,000
• Annual fee: No annual fee for life for both primary and supplementary cardholders
• Interest rate: 3%
• Late payment fee:
  • Monthly option: ₱1,000 or the unpaid minimum amount due, whichever is lower
  • Semi-monthly option: ₱500 or the unpaid minimum amount due, whichever is lower
  • Weekly option: ₱250 or the unpaid minimum amount due, whichever is lower
• Overlimit fee: None

The AUB Classic Mastercard is yet another great credit card for teens, not only because it comes with no annual fee for life, but also because of the amount of freedom it gives your teenager in terms of paying their credit card bill. You can select when you want to pay, how often you wish to pay, and how much you want to pay for each cutoff date—perfect for a beginner cardholder.^[10] 

Choose how often you want to pay every month:

• Once a month
• Twice a month
• Every week

Based on your first choice, you can decide when to pay your credit card bill:

• If you choose to pay once a month, you can choose any day of the month
• If you choose to pay twice a month, you can choose from the following cutoff dates:
  • 1st and 16th
  • 2nd & 17th
  • 3rd & 18th
  • 4th & 19th
  • 5th & 20th
  • 6th & 21st
  • 7th & 22nd
  • 8th & 23rd
  • 9th & 24th
  • 10th & 25th
  • 11th & 26th
  • 12th & 27th
  • 13th & 28th
  • 14th & 29th
  • 15th & 30th
• If you choose to pay weekly, you can choose any day of the week

Once you’ve determined the timing of your credit card bills payment, you can now choose the minimum amount you want to pay:

• If you choose to pay once a month, your minimum amount due can be any of the following:
  • ₱4,000
  • ₱5,000
  • ₱6,000
  • ₱7,000
  • ₱8,000
  • ₱9,000
• If you choose to pay twice a month, your minimum amount due can be any of the following:
  • ₱2,000
  • ₱2,500
  • ₱3,000
  • ₱3,500
  • ₱4,000
  • ₱4,500
• If you choose to pay once a week, your minimum amount due can be any of the following:
  • ₱1,000
  • ₱1,250
  • ₱1,500
  • ₱1,750
  • ₱2,000
  • ₱2,250

Tips on Giving a Teenager a Credit Card

Were you able to pick the best credit card for minors from our list? Great! But you’re not out of the woods yet. In fact, the hard work is just beginning. Before handing out the credit card to your teenage child, make sure to read these tips first.

👉 Explain Basic Credit Card Concepts and Terminologies

Using a credit card may be easy for you, but for a teenager, the concept of credit line and debt can be overwhelming. Sit down with your child and explain different credit card concepts and terminologies in as thorough and digestible way as you can. 

When you have the time, walk them through every term that they can encounter when using a credit card. Show them an example of a terms and conditions document, and explain the different terminologies in the fine print. Plus points if you can make a slide deck presentation or a mnemonic device for them to easily absorb all of this information. 

Encourage them to do more research on the importance of maintaining a good credit score by sharing articles and video guides online. The main goal is to teach them that a credit card is not unlimited money—break this mindset as early as now before they sink deep into debt. When they know the consequences of swiping irresponsibly, they’re more likely to behave. 

👉 Set Rules and Boundaries 

No matter how mature you think your teenager is, never assume that they’re a responsible spender. Set rules and boundaries on how they can use their credit card. 

Most supplementary credit cards can be controlled from the bank’s mobile app. As the primary cardholder, you can set a lower credit limit or lock the card temporarily if needed.

Most importantly, have a conversation with your teenager about how to use their credit card responsibly. You can tell them to use it for emergency situations only or as a reward when they perform well in school. This way, you can teach them to practice discipline when using credit cards in the future. 

👉 Use a Secured Credit Card First

When you open a bank account for your teenager, check with the bank if you can give your kid a secured credit card first. Basically, a secured credit card’s credit limit is tied to the amount of savings your teenager has in their account. This serves as a good training ground to see if your teenager can handle the responsibility of having a credit line or not. 

👉 Start With a Low-Limit Card

Most banks allow you to set a lower credit limit for your supplementary cardholder since you’ll be sharing your credit limit with them. Set their credit limit to half of yours, for example, so that they won’t end up in huge debt when they max your credit card.

Setting a low credit limit for your teen allows them to budget their expenses accordingly. Talk to your child about their credit limit setup so they can plan and strategize how best to use their supplementary credit card. 

👉 Review Monthly Purchases With your Child

Take time to review your child’s monthly credit card purchases, and ask them about any unexpected expenses. By having these regular discussions, you can make your child more conscious of any impulsive purchases they make and help them form better spending habits in the future. 

👉 Teach Them the Value of Delayed Gratification

Your teen may argue that, because credit cards offer installment plans, they can buy whatever they want even if they don’t have the budget for it. Even adults fall for this line of thinking—that’s why, as early as now, you should teach your child the values of delayed gratification and of spending within their means.

A good rule to reinforce this lesson is this: don’t charge anything to your credit card that you can’t pay for in cash right now. Don’t let your teenager think that a credit card gives them access to unlimited money. It’s still credit—whatever they buy using their card still needs to be paid for within a deadline. 

👉 Be Prepared to Step in When Things Get Out of Hand

When things get out of hand, be prepared to put your foot down and take control. If your teen crosses any lines you’ve set, you can either lock their credit card temporarily or take it away entirely. 

Still, as much as possible, don’t punish them in a way that will discourage them from touching a credit card again. Always be reasonable in your actions and explain why you’re doing what you’re doing so your child can learn from their mistakes without being traumatized in the process. 

Final Thoughts

It’s understandable to have misgivings about getting a credit card for teens. After all, it’s not for everyone. 

Just remember that having a credit card isn’t inherently a bad thing. At the end of the day, a credit card is just a financial tool that can help you reach your goals. 

Teach your teen the proper use of credit cards so that they’ll be equipped with the knowledge and wisdom they need to use their plastic money responsibly. They’ll also learn other valuable money habits that will lead them to good financial decisions in the future.

Once they're ready to move beyond supplementary cards, help them choose the best credit cards for beginners. Compare the options below and apply directly through Moneymax:

Credit Card for First-Timers	Features and Benefits
UnionBank Rewards Credit Card	Monthly income requirement: ₱15,000 Interest rate: 3% Perks: 3x points when you shop and dine here and abroad 1 never-expiring point per ₱30 spend
Metrobank Titanium Mastercard®	Monthly income requirement: ₱15,000 Interest rate: 3% Perks: 2x rewards points on dining, department store, and online purchases 1 point for every ₱20 spend
Security Bank Gold Mastercard	Monthly income requirement: ₱30,000 Interest rate: 3% Perks: 1 rewards point per ₱20 spend Secure online shopping with SecureCode
BPI Rewards Card	Monthly income requirement: ₱15,000 Interest rate: 3% Perks: 1 BPI Point per ₱35 spend Up to 36 months of installment terms Up to ₱2 million travel insurance coverage
BPI Edge Card	Monthly income requirement: ₱15,000 Interest rate: 3% Perks: 1 BPI point per ₱50 spend Flexible installment plans and payment options
PNB Ze-Lo Mastercard	Monthly income requirement: ₱10,000 Interest rate: 2.5% Perks: Zero annual fees for life No late payment or overlimit fees
AUB Easy Mastercard	Monthly income requirement: ₱50,000 Interest rate: 3% Perks: No annual fees for life 0% interest on new purchases Flexible credit card payment due date
AUB Classic Mastercard	Monthly income requirement: ₱50,000 Interest rate: 3% Perks: No annual fee for life 0% interest on new purchases 1 rewards point per ₱50 spend

Sources:

• ^[1] UnionBank Rewards Credit Card (UnionBank website)
• ^[2] HSBC Red Mastercard (HSBC website)
• ^[3] HSBC Gold Visa Cash Back (HSBC website)
• ^[4] HSBC Platinum Visa Rebate (HSBC website)
• ^[5] Security Bank Gold Mastercard (Security Bank website)
• ^[6] Security Bank Complete Cashback Platinum Mastercard (Security Bank website)
• ^[7] Metrobank Titanium Mastercard (Metrobank website)
• ^[8] Metrobank Platinum Mastercard (Metrobank website)
• ^[9] BPI Amore Cashback Card (BPI website)
• ^[10] AUB Classic Mastercard (AUB website)