Subscribe to this BlogMy 12-year-old got a credit-card offer!
My daughter recently reached a dubious milestone in her life: She received her first credit-card solicitations in the mail. “A great rate is just the beginning …” read one of the offers, which were targeted at college students. Problem: My daughter is not a college student. She’s 12 years old.
My first reaction was to be angry at the mean, incompetent credit card companies trying to lure my tween into a life of debt. But as often is the case with parenting, and with finances, the story is more complicated than that. As I dug further to find out what happened, I got an education in both how credit card companies work and why I need to teach my kids about Internet marketing.
College students, teens and tweens certainly represent potential piles of profit for a lot of businesses, credit card companies included. The average college student carried $3,173 in credit card debt last year, according to a Sallie Mae report. Firms compete hard to get your kid’s business, using professional youth marketers to locate prospects. These so-called “list aggregators” scour magazine subscription lists, Internet sites, retailer databases and more, in order to find the next generation of college students — and credit-card holders.
It was one of these firms, American Student List, which sent my daughter’s name to Discover and 1st Financial Bank. American Student List says on its website it is the “most trusted name in youth marketing” and promises “the most comprehensive youth data” on teenagers and college students.
But the credit card materials my 12-year-old received clearly stated they were for college students over the age of 18. How could American Student List get that so wrong? I wondered whether my daughter’s actions had something to do with this.
So I asked American Student List how it got my daughter’s name. Sure enough, she had clicked on one of those annoying pop-up ads promising a free gift. That took her to brandsurveypanel.com, a marketing site that sends out “free” gifts to people who sign up for a variety of promotional offers. You have to be 18 to sign up — so my 12-year-old, eyes dazzled by the prospect of a free iPod, obligingly entered a fake birthdate.
American Student List was even able to tell me exactly when she accessed the site: Jan. 4, at 11:50 a.m.
Both credit card companies, Discover and 1st Financial Bank, apologized and immediately removed my daughter’s name from their files. So did American Student List. Wayne Nesje, a vice president with 1st Financial, assured me that if my daughter had actually tried to get a card from the mail solicitation, she never would have been able to.
I do think it ought to take more than just one pop-up ad click to get my daughter on a credit card mailing list. But we as parents also have some real education to do when it comes to online consumer behavior. We worry about sexual predators and inappropriate content on the Internet — understandably so — but I think we miss the fact that our kids’ online travels also make them targets for marketers. Clicking on a pop-up ad or signing up for an email list puts them in the sights of companies hoping to sell them something. And often kids aren't mature enough to understand the strings attached to these deals, or how they might get in over their head financially. So I’m calling this a teachable moment — time to give my kids a lesson in credit, and online responsibilities.
Are people seriously offended that a twelve year old had been using the internet without her mother over her shoulder? I'm now 27, somewhat young but old enough to usually understand the perspective of most adults but not in this case. I remember surfing the net unchecked in my early teens and I didn't grow up in nearly as connected an age as young people do today. The internet has changed the way we interact with the world, and the people in it, if you think you'll be able to keep kids from accessing it you'll be awfully disappointed.
We use the Net to access information, stay connected with friends and loved ones, and for general entertainment purposes. Get a clue, the internet is for everybody.
The way to think about it is to WIN. Why not have this card being used early on, even at age 12? By the time she is 21, she'll have 12 years of credit history built up. Of course all along you need to discipline any child as to the proper use and not abuse it.
Very simple solution to this problem that no one wants to address. PAY CASH, if you need to charge it, you don't need it. Save up for it, put it on lay-away, but never charge it. Never ever use credit cards for normal expenses like GASOLINE!! There is no magic here, just simple logic and discipline.
I was in the same boat as Hazel. My dad signed me up as a user on his credit card, only to be used on school clothes and supplies. It's taught me a lot about responsibility and how credit is not 'free money' as some young people think. I am 29 now and have a great credit history since Dad got me started so early. I think it really helped secure student loans for college too.
So?
I had a credit card at that age, tied to my dad's account. I paid him the full balance every month out of my allowance and earnings.
It's a great way to build responsibility–I'm now 23, and have never held a balance or missed a payment.
The banks who are the credit card companies are putting the screws to everyone.All you taxpayers out there are getting taken even if you dont have any cards.The worst part the government lets them get away with it.Somebody in washington getting kick backs and favors?
Come on people, those of you that have never lied on paperwork, let me see your income tax statements. (Hmm, I thought so.) The girl was not lying to get a credit card, she was trying to win a prize. I lie on those things too (I'm 40) so that they can't get much identifying info. I let my kids lie to get their Airmiles, so they could collect points, because I believe that their money, kids money, is just as valuable as adults money. And I lied and put my daughters car in my name so she could get a student loan because she also works and it would take 2 buses and 1 hr to get home at 11 pm and they don't care if she gets home. But I do, and so I lie. I will lie to a dishonest government and I will lie to corporations that create toxic products. But I wouldn't lie to you or my family.
Next time you get an updated customer agreement to read and sign from your card company, watch out for any changes that are meant to circumvent the rules set to take effect next year.
1) Interest rates can no longer be arbitrarily hiked up particularly in the first year of opening an account. At least 45 days of notice is required before rate increases. To outwit this legislation before it takes effect, card companies have started jacking up rates for current customers. Call your card company to demand an explanation for any rate increases on your card.
2) Because rates can be changed more easily on variable rate cards than fixed rate cards, companies are racing to convert their fixed rate customers into variable rate ones. Do not be tempted by offers to make to switch to a variable rate card with a low teaser rate. This is similar to what home buyers fell for when they signed up for ARM-type mortgages.
Pointless article. It should really be an orticle on direct marketing which is ingrained in everything American's do. My kids have been getting these offeres for years since they are part of several airline frequent flier clubs (which is perfectly acceptable). I just want to know how I get the 5 mins. I wasted reading this dumb article and responding to it back.
Lisa Gibbs needs to learn how to write a story and headline. As soon as you learned the 12 yo lied about her age, the story should never have gotten written as an attack of the CC company, but a parenting article.
This article should have been entitled something more about the cheating 12 year old using the internet. The CC company did not know she was 12. She had lied to say she was 18. PARENTS WATCH OUT FOR YOUR CHILDREN BY KNOWING WHAT THEY ARE DOING AT ALL TIMES. Don't blame the CC company for sending the offer to an 18 yo that is really 12.
I've got this one beat. I actually received a credit card when I was twelve. No Bull…I'm fixing to be 53. It looks like they've tightened up a little bit, or either just plain simple mistakes will always be made.
Let's talk about the falling dollar or the price of oil which is still way to high.
I can't believe some of these nasty comments. Maybe the problem is that companies shouldn't be using pop up ads on children. Remember, they sent the ad to HER. At 12 years, (jr high school age), she certainly should be able to be on the computer herself, especially in the middle of the afternoon. Calling the girl's behavior was certainly "fraudulent" is overstated. She's a kid, who acted like a kid. The company who creates the list doesn't care. They get names, and they get paid. Therein lies the crime.
Lisa, you're daughter lied in order to cheat a business. In the minds of many this would also be considered fraud. I seriously hope, for both of your sakes, that you found suitably harsh punishment for her, under slightly different circumstances this behavior could cost her her freedom. I have to admit I understand your desire to protect your children, but you seem to completely miss the point that her lying, cheating, fraudulent behavior was the root of the problem, not an innocent happenstance.
Lame article. My kids(now in 20's) have been getting credit card offers since they were a year old and we signed them up for their frequent flyer miles. The only way to see our families is fly.
I'm sorry, but I don't think the article should have even been published. From one mother to another, I think the author should be a little embarrassed and concerned that her child was using the internet without her supervision, responding to a spam pop-up ad, and entered a fake birthday. Major red flags all around. No bank can be responsible for consumers falsifying information, and parents should be responsible for the behavior of their children.
This has been happening for decades. I was probably around 10 or 11 when I first *saw* a "pre-approved" credit card application in my name. There likely would have been many others that passed through our mailbox en route to the garbage prior to being assigned the chore of checking the mail.
Aren't there a fair number of people who've received credit cards for their pets?
It frightens me that a mother could describe her daughter's dishonesty as "obligingly entered a fake birthdate." And somehow the credit card companies are to blame for you child's lying?
The "assurance" that she would not have been approved is somewhat dubious. When I was only 16, I was on a college campus as part of a summer research program. I filled out a form to apply for a credit card and was approved! I am very responsible with money and actually kept that card for 7 years, making on time payments every month. Maybe they have tightened their lending requirements over the past 10 years, but if she lied about her age on the Internet, she could just as easily lie on a credit card application form.
why not give her a credit card
over 600 people under the age of 18 filed for the first time homebuyer credit of 8000 dollars
one of them was 4 yrs old
I truly fail to see any point in the entire article – realistically, what were the companies supposed to do?
All the companies involved reasonably thought your child was of legal age because she lied when filling out a form. That's all they have to go on. And they would have declined her application, as long as she didn't misrepresent her age again.
This kind of discourse makes it seem that you'd like companies to compile and reference a database of personal information on everyone in the US – oh, that's probably not good; instead, let's not not allow business to do anything without having absolute confidence in a form-fillers age – oh, you've just undermined the simplicity and ease of the internet, not to mention privacy, which many enjoy.
If all your kids get solicited for is a Credit Card before they're 18 consider yourself a lottery winner. Kids are targets in so many other sick and perverted ways today that only getting a credit card solicitation 'tween 12 & 18 is a true blessing.
About 3 weeks after my son was born, I got a phone call from a credit card company wanting to talk to him.
me: Are you sure you want to talk to him? What is this about?
credit card co.: I would like to talk to Mr. XXXXX. This is in regards to a great offer for a credit card with a great rate!
me: You got to be able to speak "baby" since Mr.XXXXX is only 3 weeks old.
She hung up immediately after that.
I don't know where they get their database to call people but this is plain outright crazy! Some credit card companies will try to "prey" on hapless victims just to boost their bottom line.
My dog Pepper received Credit Card offers for years after I put his name on a warranty card for a carbon monoxide detector.
Over the past 2 years, I have been getting mailers from AARP but I was born after the bi-centennial. Unless they're broadening their target market, then there's something very wrong with my info in their database.
WRONG! My daughter is 6 and for over a year now she has been solicited monthly for a American Airlines Advantage AMEX credit card. I actually applied for her just to see what would happen and of course they turned her down because of her age. I followed up with calls to the American Airlines and the bank but no one would do anything. She still gets regular offers from American Airlines to open a credit card.
People. I work for a large bank, as a senior bank teller/ customer service representative. Opening a checking account at a bank when your child is old enough will not establish a credit score for you. If the account were to be charged off you would establish a credit score… a very poor one at that.
If you want a credit score established you should cosign a card with your child, or have them save a large downpayment for a vehicle. Student loans will also contribute to a credit score. But simply opening a checking or saving account at your bank will not establish a credit score.. This was for Ron from Des Moines IA.
This is a lame article. The company acquired information that stated the child was over the age of 18. No company would intentially solicit a 12 year old for a credit card.
To Harry in Rockville, you should be able to get a credit card from your local bank. You will need to tell them to manually consider your application instead of basing it on your credit score as you do not have any debt.
Not the same, but when I was about 13 I received a AARP card in the mail. Although my I did not think much about it at the time, it does sounds nice now to skip the whole work stage and go directly to retirement.
Lets Start with a few questions for Lisa the writer of theis article and the parent of the 12 year old:
1) Why is your child surfing the internet unsupervised? 2) Why are you blaming the advertisers who pay big money to be on the internet for soliciting your child after she lied about her age? 3) Have you banned your child from the internet yet or punished her for lying? I love how parents relinquish their parenting duties to the nearest lectronic baby sitter whether it be the TV or the computer then run arround aghast that little Buffy or Cody got into trouble. If you don't want to be a parent, don't have kids. And please stop blaming the rest of the world for your poor parenting skills!
My daughter got her first call offering a credit card when she was 4 months old–we had recently signed her up for an airline frequent flier number.
Banks do need to be accountable for sending out credit card limit offers and new card offers. This is the reason that so many Australians are in credit card debt – credit cards are too easy to get. While this 12 year old would never be able to apply for the card I find the source of where her name came from of great interest! As parents we do need to be aware of the strategies being adopted by corporations and we do need to teach our children how to use the internet responsibly!
Those credit card companies…God love 'em. You know who else tries to get kids hooked at a young age? Drug dealers.
This article is stupid. Does that author have any evidence the credit card companies want to give credit cards to 12 year olds? Of course not. A 12 year old can't sign a contract so there's no way they'd be able to get their money back if they gave them a card.
More likely, the credit card company bought a mailing list from someone with the child, dog, whatever's name and either couldn't tell the age or species of the address, or just expected a certain % of bad names whether they be kids, dogs, or deadbeats.
As mentioned before, kids on frequent flyer programs get solicited for credit cards, magazine offers, etc. Lots of other lists that kids get on where age is not provided.
I am 74 years old.I have no debt and own real estate of substantial value.I cannot get a credit card since I have no credit score.There is something wrong with the system.
I blame the parents for this — what's your 12yr old daugher doing browsing online for a free Ipod's at midnight on a school night ? You should expect more of these solicitations on your doorstep.
Chin and Steve: You need to keep your dogs off the Internet. It can be harmful to their financial health.
Anonymous posted this 10/16 at 11:07amsay you should have let her sign up for it. As long as you don't cosign for the card, they cannot hold her liable to the contract until she turns 18. She could have run up to her limit and then refused to may. I could be mistaken, but from what I have read, this is true.
HUH??? Gee that is a GREAT way to teach our kids. A main focus of this article was the “Teachable Moment”.. And you now indicate you would counsel your child to
1. Lie
2. Sign (electronic or ink) a document where she knew the statements to be false
3. Purchase items with no intention of paying for them
4. Believe this is an acceptable way to act
All because she many not be found liable? So now let’s move the clock ahead 6 years. The daughter is now 18. What has she learned? For the answer please refer to items 1-4. And we wonder why children do not respect the rules, society and each other??? HMMMM
And I am glad to sign my name at the end. (Amtt from Kennebunk Maine) It appears "Anonymous" was not
If you want to help your kids get credit history without getting them a credit card, get them checking accounts as soon as your bank will let them have it.
I did this at the age of 14 for all of my kids and they have great credit scores, just from having an open account.
You just have to make sure you help them keeping up with their accounts. I took the check book and only allowed them to use their debit cards. I made sure they did not have overdraft protection and one time in line with a debit card with non sufficient funds usually stops them from making that mistake again.
This is interesting. Side note, last year, American Express sent my dog a pre-approved credit card notice..no joke
My dog used to get credit card offers all the time.
We actually sent in an application. Listed his age as seven, and his occupation as security guard.
The bank called the house to ask him some questions. We told them he was indispossed, and probably wouldn't be able to dial them back due to not having thumbs. The rather suprrised woman from the bank asked if he was disabled. She insisted that he had to call back, as he'd not included his social security number on his app. We told them that he probably didn't have a social security number because he was German. We left out the "Shepherd" part. 
Remember, too, that receiving a credit card solicitation is quite different from receiving a credit card. Perhaps at one time these were synonymous, but no longer. My son who is a college student has been trying to get a credit card, but his applications are consistently declined because he has no credit history. Whether this is a blessing or a curse is an unresolved question, I guess.
GK:
I read your comment more thoroughly and thoughtfully. I take back my remark from a few minutes ago. I apologize.
I'm a teenager myself and I think the girl is at fault. She knows she isn't suppose to lie about her age. That can lead to other things like talking to older guys. The mother needs to be mad at her child for putting out her information on the internet with out permission. I know I'm not perfect but i know better than to do something like that.
Delta Airlines/American Express just sent all 4 of my kids (ages 11 to 16) applications for their card. They all had NWA air miles accounts.
Wow! Lots of critics on this one. The key here is that in the final sentence this is being used as a "teachable moment". Of course I'm sure none of the rest of you have ever had to deal with kids being dishonest on line because your kids are all perfect.
I like to mail all those pre-addressed postage paid envelopes that come with mailed credit card applications back with random sheets of garbage inside.
i think your 12 year old deserves a credit card
she is probably more responsible than 1-2 the people in this country
she did not take out a ninja loan to buy a house she could not afford
she did not use her house as an atm machine and then go whining to obama for a loan mod
she did not max out her credit card and then offer to pay pennies on the dollar in a settlement
go ahead give her credit she cant do any worse than many adults
The child entered a birthdate that would have made her over the age of 18. Sounds like a dishonest youngster and lack of proper oversight on the part of the parents.
How do you expect a bank to sort through who really is under and over 18? Hopefully the card would not have been issued however as far as the solicitation in the mail goes, how can you fault anybody but the child?
Parents in America really refuse to accept any responsibility. Shift the blame to somebody else – anybody else. I'd be afraid to know what else this child is involved in on the internet now that she thinks she's 18 (and who else you'll blame for that).
I was in my younger teens when I received a pre-approved American Express Platinum card. I was a numismatist (coin collector) and had various subscriptions under variations of my name (i.e. some with my middle name, others without, others with my middle initial, etc)- so it was easy to track where the offer originated from.
Because the average subscriber of this newsletter I was receiving had an income level above 100,000 year it was easy to understand why the credit card companies would target readers. My parents and I got a kick out of it- especially since I was raised in a home where financial education started very young and continued throughout the years.
We had the same problem with airline travel. My daughter was six weeks old when we flew with her the first time. Before she was even a year old, she was receiving credit card invites. Some were preapproved. Scary. There are several sites you can go to and the offers stopped, just like the National Do Not Call list. Here is one: https://www.optoutprescreen.com/?rf=t
I'm not sure it would stop internet offers though, if a falsified birthdate is entered.
Unfortunately, the odds are good that she would have been given a card, had she applied for one. Only 70% of applications are actually reviewed. You know the saying, even "children, dogs and dead people can get a credit card"? It's true – I keep getting offers for my father. He's been dead since 1997…
My kids also got cc solicitations from the mileage club. And then the cc company said that they could only accept the request to remove from the person named on the offer, to which I responded that since the person so named was a minor that they would be dealing with me, as the legal guardian. if that was a problem, I could have my attorney contact them instead about trying to contract with a minor. Amazing how fast they worked through it then.
my son, then 3 years old, received a credit card offer from Chase for their Continental One Pass card. Again he was only 3. When I investigated, we found out that the offer was generated since we created a frequent flier profile for my son with Continental since he was flying often to see family and we were paying for his seat now. Chase initially refused to remove his name from their solicition list, but finally did once I treatened to contact the Federal rade Commission.
I got my two son's frequent flier accounts with airlines, why not, they're free, and who knows, we might just get enough miles to qualify for something.
This was enough for them to get offers for credit cards. They aren't twelve. My oldest is 6 and my youngest is 3. And the credit card offers aren't for college kids, but for adults.
This is America, don't know why this article is news…
I say you should have let her sign up for it. As long as you don't cosign for the card, they cannot hold her liable to the contract until she turns 18. She could have run up to her limit and then refused to may.
I could be mistaken, but from what I have read, this is true.
I would like to ask who to blame if your kid entered a fake birthday to receive an Ipod that was not supposed to be given…..
"You have to be 18 to sign up — so my 12-year-old, eyes dazzled by the prospect of a free iPod, obligingly entered a fake birthdate", but sure lets blame the companies.
My children each received credit card offers when they were 3 and 5 years old respectively after we registered them with an airline miles program. I wouldn't let the credit card companies off the hook so easily. They have access to plenty of data sources from which they can and should validate age information.
Yikes, good thing she can't get a credit card at 12! Imagine the shopping damage she could do waving a VISA card around. Throw in a couple of friends on a spree and Dads off to the poor house.
Would suggest checking the "block pop-up windows" box in your browser.