Gift for the Kid Who Has Everything: A Credit Card

A bank dedicated to young customers is offering what it says is the first credit card for children.

Young Americans Bank introduced the credit cards at a party marking the institution’s second anniversary.

Like most credit cards, these have restrictions. Youngsters must talk a parent or other adult into co-signing and guaranteeing payment on their accounts.

Although cardholders must be at least 12 years old and cannot exceed a $100 credit limit, the bank will consider increasing credit limits and lowering age requirements for particularly credit-worthy children, said Leanne Cadman, who heads the bank’s loan department.

Otherwise, the MasterCards, issued by United Bank of Denver, are just like mom’s and dad’s. Monthly statements will tell kids they can make a minimum monthly payment or pay off the whole balance. Interest will accrue on the balance at the annual rate of 18.8%, Cadman said.

Young Americans Bank, a full-service, state-chartered and federally insured bank, already offers checking accounts for children 12 or older. In its two years of service, it has signed up 10,000 depositors.

“We tell them they need to use credit cards with care and not to abuse them,” Cadman said. “And of course, we impress on them that whatever you charge you have to pay back.”

The bank was founded two years ago by Denver cable-TV executive Bill Daniels.