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When fintech Greenlight released its Family Cash Mastercard to the public in October 2022, the card stood out for its better-than-average cashback rewards and auto-investing feature. Now the company has announced it will allow account holders to add their children as authorized users on the account, which helps give the kids a head start in building a credit history.
Below, CNBC Select breaks down everything you need to know about Greenlight's latest offering.
What's different about Greenlight's approach to authorized users
While most other credit cards allow you to add an authorized user, Greenlight has put together a suite of features that make its card particularly helpful for parents wanting to teach their children responsible credit management.
Greenlight Family Cash Card
Rewards
Earn 3% when you spend at least $4,000 in a billing cycle, 2% when you spend at least $1,000 but less than $4,000 in a billing cycle, 1% when you spend more than $1,000 in a billing cycle
Welcome bonus
None
Annual fee
$0 (with Greenlight subscription)
Intro APR
N/A
Regular APR
20.24 % variable to 28.24 % variable
Balance transfer fee
N/A
Foreign transaction fee
None
Credit needed
Good/Excellent Credit
Terms apply.
Pros
- Earn up to 3% cash back on all purchases
- No annual fee
- Redeem rewards for cash back or investing
Cons
- No welcome bonus
- Requires Greenlight membership subscription which starts at $4.99 per month
Set spending limits
Like many (but not all) cards that allow for authorized users, Greenlight's Family Cash Card lets you set a separate spending limit for the authorized user. Account holders can simply enter through Greenlight's mobile app a monthly limit for the authorized user. This custom limit lets parents give their children some responsibility to manage spending without having to worry that the authorized user will charge too much to the card.
Track spending
In addition to the spending limit feature, you can also track your child's spending history. Beyond keeping tabs on what they're charging to the card, this feature lets you sit down with your child and review together how they're spending their money. It's a great way to have a conversation about spending habits and values.
Financial literacy tools
One way to get your child into a habit is by making it a fun experience. Greenlight's mobile app offers a Level Up money game for children in grades K-12 to teach them the fundamentals of personal finance, such as budgeting and investing.
Alternatives to the Family Cash Mastercard
If you decide Greenlight's Family Cash Mastercard isn't right for you, there are still plenty of other cards that can help build a credit history. CNBC Select's ranked the Blue Cash Preferred® Card from American Express as the best cash-back card pick for authorized users as it offers various cash-back rewards options, like 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%) and select U.S. streaming subscriptions. Terms apply.
If you're not looking to add an authorized user and just need a good card that can help increase your credit score, the Chase Freedom Rise® (see rates and fees) is a credit builder card designed for users with limited or no credit history. You can earn 1.5% cash back on all purchases with the card, and could be eligible for a credit limit increase a mere six months after opening your account (pending approval from the lender).
The Blue Cash Preferred® Card from American Express is a low-fee card with generous cash-back rewards and useful ongoing benefits, such as a monthly Disney Bundle credit. (Enrollment required for select benefits mentioned)
- High cash-back earnings for U.S. supermarkets and streaming services
- Intro-APR offer for purchases and balance transfers
- No annual fee for the first year
- It's less rewarding after the first year because of the annual fee
- Bonus rewards for U.S. supermarkets are capped
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply and find out your welcome offer. As High As $300 cash back* after you spend $3,000 in purchases on your new Card within the first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply, and if approved: 1. Find out your offer amount 2. Accept the Card with your offer 3. Spend $3,000 in 6 months 4. Receive the cash back. *Cash back is received in the form of Reward Dollars that can be redeemed for a statement credit or at Amazon.com checkout.
- $0 intro annual fee for the first year, then $95.
- Enjoy 0% intro APR on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 19.49%-28.49%.
- Plan It®: Buy now, pay later with Plan It. Split purchases of $100 or more into equal monthly installments with a fixed fee so you don't have the pressure of paying all at once. Simply select the purchase in your online account or the American Express® App to see your plan options. Plus, you'll still earn rewards on purchases the way you usually do.
- Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
- Get up to a $10 monthly statement credit after using your enrolled Blue Cash Preferred® Card for a subscription purchase, including a bundle subscription purchase, at DisneyPlus.com, Hulu.com, or Stream.ESPN.com U.S. websites. Subject to auto-renewal.
- Terms Apply.
- See Rates & Fees
Balance transfer fee
Either $5 or 3% of the amount of each transfer, whichever is greater.
Foreign transaction fee
2.7% of each transaction after conversion to US dollars
The Chase Freedom Rise® is one of the most rewarding cards that's available if you're new to credit.
- No credit history required
- Above average flat-rate rewards
- No annual fee
- Small welcome offer
- Has a foreign transaction fee
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Limited Time Offer - Earn 3% cash back on dining at restaurants, including takeouts and eligible delivery services, on up to $6,000 spent in the first 6 months from account opening.
- Increase your approval chances - Having a Chase checking or savings account with a balance of at least $250 will increase your chances of getting approved for Chase Freedom Rise®
- Earn Cash Back - With Chase Freedom Rise®, you can establish credit while earning 1.5% cash back on all purchases. Cash Back rewards do not expire as long as your account is open and there is no minimum to redeem for cash back.
- Earn a $25 statement credit after signing up for automatic payments within the first three months of opening your account. With automatic payments, just pick a date and dollar amount to make sure your Credit Card gets paid on time.
- Credit Limit Increase - As a Freedom Rise® cardmember, you'll be evaluated for a credit line increase in as soon as 6 months. Your credit line is the maximum amount of money you can spend on your Freedom Rise® Card
- Free Credit Score - Track your credit score and learn how to build it with Chase Credit Journey.
- No Annual Fee - You won't have to pay an annual fee for all the great features that come with your Freedom Rise® Card.
- Member FDIC
Balance transfer fee
5% or $5 of each transfer, whichever is greater
Foreign transaction fee
3% of the amount of each transaction in U.S. dollars.
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Bottom line
If you're a parent or guardian looking to boost both your child's financial literacy and credit history, the Greenlight Family Cash Card could be a great opportunity to achieve that goal. Unlike most credit-builder cards, it offers various educational opportunities that help you walk through the difficulties that come with dealing with finances.
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For rates and fees of the Blue Cash Preferred® Card from American Express, click here.
