Outline Credit Card Usage Among Teenagers

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INTRODUCTION-Teen credit card debt has become a widespread problem in the United States today. It seems like anyone can get a hold of a card, teens included. Debts among teens have been on the rise for years. With college costs, cars and other necessities needed to eventually start a career, teens may not be able to automatically start paying back balances owed. This could create major problems for a young person when they want to buy a home or car in the future. What are the causes and effects of giving credit cards to teenagers.

A)firstly, it is because of necessity.
-Increasingly, merchants do not accept checks as a form of payment, and more retailers take credit cards than debit cards. Although you can use electronic checks and debit cards online, they don't offer the same protection against loss and identity theft as credit cards do. For these reasons, more teens use credit cards to make payments.

B)secondly, sometimes they are lack of funds
-Some teens must make necessary purchases for which they and their parents do not have money immediately available. For instance, they might need to buy textbooks for a college class or pay college application fees. In these cases, a credit card might be the best way for a teen to manage his cash flow and avoid financial problems while still meeting his goals and needs.

C)thirdly,to build up responsibilty among teenagers.
-Parents and other care givers sometimes give teens credit cards as part of teaching financial responsibility. The idea is that a teen will learn to use a credit card more wisely under the watchful eye of an adult

D) Credit Score
When a teen uses a credit card, she starts to build a credit history and score. Establishing good credit is important, because someday a good credit score will help that teen qualify for additional financing, such as a car or home loan. Teens also need to understand that...
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