Credit cards are ubiquitous in our financial system, so there’s a high chance your child will get one sooner or later. Introducing them to lending mechanisms early on is an excellent decision as it helps them build proper money management skills they’ll carry into adulthood.

If your child is ready for their first financial product, you might be considering a Capital One credit card for kids. This guide will outline everything you should know about this financial product so that you can decide if it’s the right option for your child. You’ll also learn how to prepare your child for their first credit card and how else to support their long-term financial stability.

Who Can Take Out a Capital One Child Credit Card?

Before exploring the details of Capital One kids’ credit cards, you must know if your child even qualifies for one. Like other lenders, Capital One doesn’t issue credit cards to minors since doing so isn’t legal.

Even if your child is of legal age (typically 18 or over), there’s a high chance they might not get a credit card because of the limitations imposed by the CARD Act of 2009. 

According to the Act, anyone under 21 must demonstrate an independent ability to make payments before they’re considered as a borrower. Otherwise, they must have a co-signer over this age who can assume responsibility for the card.

Banks abide by the CARD Act’s guidelines, so they’ll only issue a credit card to your child if they meet the above conditions.

Capital One Kids’ Credit Card—Available Options

Capital One offers two credit card types your child might be eligible for:

1. Secured credit cards
2. Student credit cards

Capital One Platinum Secured Credit Card

Secured credit cards are typically intended for those without a solid credit history or people trying to rebuild their credit score. Young adults typically fall under the former category, so your child may qualify for this option.

As the name implies, secured credit cards are protected by security deposits that lenders use to counter the risk of non-payment. The collateral is refundable and typically the same as the credit limit, but Capital One lets users open a $200 credit card with a minimum deposit of $49. 

Users can increase the credit limit to $1,000 after six months through timely payments and larger deposits. Capital One lets the cardholder get their deposit back if they use the card responsibly and may even extend an offer for an unsecured card to trustworthy borrowers.

Capital One Credit Cards for College Students

Capital One aims to support college students’ independence through three credit cards:

1. Journey
2. Quicksilver
3. SavorOne

While the cards have similar features, there are some differences in the Annual Percentage Rate (APR) and rewards:

Card	APR	Rewards
Journey	29.99% variable	1% cash back on all purchases (1.25% with timely payments in the given month)
Quicksilver	19.74%–29.74% variable	1.5% cash back on all purchases 10% cash back on Uber/Uber Eats
SavorOne	19.74%–29.74% variable	1% cash back on all purchases 3% cash back on specific categories (dining, entertainment, etc.) 8% on Capital One Entertainment purchases 10% cash back on Uber/Uber Eats

*Interest rates and rewards as of May 10, 2023

All cards require a ‘fair’ credit score, which Capital One defines through two criteria:

1. There’s a record of loan defaults in the past five years
2. The applicant has a limited credit history—they’ve owned a credit card for three years (or have been an authorized user of one)

If your child meets either condition, they can apply for a card provided they meet the aforementioned CARD Act requirements as well. You’d still want to make sure your child understands the gravity of credit cards before taking one out.

How To Prepare Your Child for a Credit Card

Qualifying for a card doesn’t mean your child is ready for one. Borrowing money is a great responsibility with long-term consequences, so you need to make sure your child can meet their obligations toward lenders.

To make this happen, take the following steps before encouraging your child to apply for any credit product:

1. Teach your child how to use the card sensibly
2. Help them build credit

Instill Financial Responsibility Into Your Child

Source: SHVETS production

Many children have checking accounts and debit cards before getting a chance to apply for a credit card. While the basic difference between a debit and credit card is obvious enough, you must ensure your child draws a clear line between the two and doesn’t spend the bank’s money as they would their own.

Emphasize that while the credit limit is technically the amount they’re allowed to spend, they should only use credit funds when necessary. Rewards and perks might make credit card use quite compelling, but your child should resist the temptations and always pay with their own funds before using borrowed money.

Let your child know that using credit for shopping sprees and other reckless spending habits is out of the question. Set strict rules as to when they can use the money and for what. Allowed purchases can include:

• Small college expenses (books, supplies, etc.)
• Necessary clothes or items that currently can’t be funded otherwise
• Useful tech and equipment

Timely payments are also a crucial consideration, as they’re necessary for a strong credit profile that will allow them to take out loans in the future. Make sure your child prioritizes them over other expenses, as any late or missed payments can cause long-term damage to their credit score.

Help Your Child Establish and Build a Strong Credit Profile

As mentioned above, Capital One’s student credit cards are reserved for those with at least Fair credit. Your child will likely face similar limitations when applying for loans throughout life since lenders always prioritize those with a proven track record of responsible credit use.

Because of the CARD Act’s restrictions, starting a credit profile can be a significant challenge for young adults. Without your help, there’s a high chance your child would have to spend their first couple of college years without a credit card or similar financial products. This might put them at a disadvantage compared to their more independent peers.

To ensure this doesn’t happen, many parents add children to their credit cards early in life. While this method can help them start a credit history sooner than they could on their own, it suffers from a few major drawbacks:

• You must give your child unrestricted access to your credit card—this isn’t a good idea unless they’ve proven themselves responsible
• Your child will inherit your credit score, and the two will stay connected—poor spending habits or credit behavior can damage both credit profiles
• When you remove your child from the card, all credit history associated with it gets deleted from their profile, so they must start from scratch

Luckily, there’s a way to help your child establish and build credit without these caveats. If you want to give them a leg up and support their independence, check out FreeKick.

Build Your Child’s Credit and Protect Their Identity With FreeKick

There are two aspects of a good credit profile—a secure identity and a good credit score. Offered by Austin Capital Bank, FreeKick is an FDIC-insured deposit account that helps you cover both these aspects for your child.

Steps for Using FreeKick’s Credit Building Service

Your child is eligible for FreeKick’s credit building service if they’re between the ages of 13 and 25. This service is a good way to help them establish a credit history early on in life in only three simple steps:

1. Create an Account—Create an account at FreeKick.bank and choose a deposit that suits your budget
2. Set It and Forget It—FreeKick will start building 12 months’ worth of credit history for your child
3. Keep Growing—After 12 months, close the account without any fees or continue building credit for your child for another year

With these steps, your child can have up to five years of credit history when they turn 18. This will help them save $200,000 during their lifetime by helping them secure better loan terms and other financial benefits.

How FreeKick Protects Your Child’s Identity

Child identity theft happens every 30 seconds, and if your child falls victim to it, all your credit building efforts can go to waste. In the worst case, your child might get charged with crimes like credit card theft, so it’s a good idea to proactively invest in protecting their identity. FreeKick’s ID protection services include:

Services for Minors	Services for Adult Children and Parents
Credit profile monitoring Social Security number (SSN) monitoring Dark web monitoring for children’s personal information Up to $1 million identity theft insurance Full-service white-glove concierge credit restoration Sex offender monitoring—based on sponsor parent’s address	Credit profile monitoring SSN monitoring Dark web monitoring for personal information Up to $1 million identity theft insurance Full-service white-glove concierge credit restoration Lost wallet protection Court records monitoring Change of address monitoring Non-credit (Payday) loan monitoring Free FICO® Score monthly FICO® Score factors Experian credit report monthly

FreeKick Pricing

FreeKick offers two pricing plans:

FDIC-Insured Deposit	Annual Fee
$3,000	$0 (Free)
No deposit	$149

With both plans, you get:

1. Credit building for six children aged 13 to 25
2. Identity protection for two parents and six children aged 0 to 25

Make sure you cover all bases when setting up your child for financial success—sign up for FreeKick today.

*Capital One is a registered trademark of Capital One Financial Corporation.

Featured image source: Antoni Shkraba