s your college-age child their name is on the contract,
finding it difficult to get they will begin to receive credit
a credit card? Many for timely car payments.
students face a catch-22 when
Your Own Cards
applying for their first card.
If your child is trustworthy,
Some card companies market their you can add them to your own
products specifically to credit card accounts. Any credit
students, yet the students often history associated with your
get rejected when they apply. credit cards will then influence
Why? Insufficient credit history. your child’s credit score.
If you don’t have credit, many
Bank Cards
companies won’t extend credit to
Start a checking or savings
you. Thus, the dreaded credit account for your child while they
catch-22. are in their early to mid teens.
If you’re a parent who is Make sure that the accounts
concerned about your child’s maintain a positive balance.
credit score, take heart. Here Then, by the time your child is
are five strategies for getting ready to head off to college,
them started down the path to they will already have a positive
good credit.
history with their bank. This can
Car Loans
be very beneficial, because banks
Teenagers eventually need will often issue credit cards to
cars, and it often falls to clients who have proved, over
parents to provide those cars. time, to be financially
But the teens should be involved responsible.
in the paperwork, too. One of the
Retail Cards
simplest (and most overlooked)
Like bank cards, credit cards
ways to start building your from retail stores are relatively
child’s credit is to get them to easy to obtain. Try to select a
co-sign for their car loan. Once store that your child will shop
at, but not one where you think running in no time. Whichever
they might be tempted to spend card you and your child decide to
beyond their means. Make sure go with, emphasize to them the
your child understands that the importance of not carrying a
key to building a good credit balance, lest they get mired down
history is to charge a small in fees, penalties and interest.
amount every month, then pay off Your child might think you’re
the balance in full. nagging, but since when has that
Secured Cards
stopped a good parent from
Secured credit cards are getting their point across?
another option for teens and
young adults who are trying to
owed out of that account. Since align="center">
this significantly reduces the
risk to the issuer, banks and credit card companies will issue type="text/javascript">
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Article Tags: card, child, credit
