Two Ways to Help Your Kids Build Credit

How can I help my child build their credit? This is a tough question for any parent. On the one hand, it is important to teach financial responsibility and independence from an early age; on the other, we want to give our children whatever advantages we possibly can. One of the main ways that young people are able to get credit is though credit cards. But, now that the credit card reform act has passed, there are more stringent limitations on who can get a credit card. For instance, now you cannot get a credit card if you are under 21 years old without proof of substantial income or a parent or guardian to co-sign.

Indianapolis Bankruptcy Lawyer, Atlanta Bankruptcy Lawyer, Orange County Bankruptcy Lawyer,

While this prevents big banks from targeting a group of people who might not be as responsible or informed as they should be, it will be harder for young people to build their credit.

Why is important to build your credit early? Building a good credit score is impossible if you are not spending responsibly and making payments on time. Young people need to learn what the appropriate limits of debt are before they end up in need of credit card debt help. Also, building a good credit score now will help them when they decide to make big purchases that require credit when older, such as getting a mortgage for a home, an auto loan, or even a loan to start a business.

Here are two tips to help your teen build their credit score:

1. Authorize your son or daughter on your credit account. This means that your child will get a copy of your credit card-linked to your account, and will be able to use it. It will also help build your child's credit. Though you may work out a different payment plan with your child, you will be ultimately responsible for whatever charges that your child makes. In this sense, it is important to be both cautious and educational. Do not let your child use your card if you have not discussed appropriate spending habits.

2. Be a co-signer for your child's credit card. If you don't want to give your son or daughter access to your credit card account, you can co-sign for them to have their own. However, if they are unable to make their payments, as a co-signer, you will be held responsible for the debt.

These tips can help teach children financial responsibility, but it is important to teach that limitations matter and that piece of plastic can have very real implications. Is your own credit card debt preventing you from helping your child build credit? A Chapter 7 bankruptcy can help erase debt. If you are wondering if you should file bankruptcy, it is important to look for free information from reputable attorneys in your area.

Bankruptcy Lawyers In Colorado Springs

Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.

Rating of Bankruptcy Lawyers In Colorado Springs

Get Online Application at online Bankruptcy Lawyer.