Credit for Kiddies

If his allowance is only 50-c- a week, what is a seven-year-old to do when he wants a $20 toy or a $ 125 toy? Well, he can always walk into the store and say, "Charge it." Buffums, a Southern California department-store chain with 15 outlets, now offers children's charge accounts. The store requires no minimum age or source of income. The precocious applicant need only find a parent or guardian with a good credit rating to co-sign the application and guarantee any debts. The Buffums card is identical to ones the store issues to adults, as are the payment terms and interest charges. The sole difference is that cardholders under 18 are generally limited to a $200 line of credit.

Since the cards were introduced in July, the chain has received 1,600 applications from potential customers as young as one; 1,400 cards have been issued so far. The store credit manager thinks the program has already helped sales. By offering young shoppers credit, the chain believes it will keep their patronage as they grow older. But who will be around then to pick up the bills?