First Credit Card
It goes without saying that young people who don't know how to use credit cards responsibly can graduate from higher education with personal debt that will take years to pay off. In the U.K., you need to be at least 18 to apply for a credit card; many student bank accounts offer a credit card as part of the package for signing up. The interest rates on credit cards are considerably higher than for other types of borrowing, such as an overdraft or a personal loan. Some parents opt to talk to their teens and teach them how to use credit wisely before they leave home.
Of course, in some countries it is not common to rely on credit cards. India, for example, remains a cash-based, debt-averse country, and although credit cards are widely available in urban areas, few parents opt to give one to their child.
