How banks work


Getting Good Credit For Your Child

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



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