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