Home > Teens > Teen Values and Responsibilities > Teens and Money > Tips for Talking to Your Kids About Credit Cards
|

Tips for Talking to Your Kids About Credit Cards

How to establish credit

Good credit is something you have to earn by demonstrating sound financial habits. Ways you can begin to establish and build strong credit include:

  • Apply for a small loan and pay it off fully and on time.
  • Open a credit card account and pay off the credit card balance in full each month.
  • Wait until you feel confident that you are managing your spending and payments. Then ask to have the credit limit on your card increased -- but don't increase the amount you actually charge on the card. Remember, lenders like to see a lower ratio of debt to available credit.
  • Before opening a credit card or loan account, make sure the lender agrees to report on-time payments to all three credit bureaus -- this will help build your credit history.

Ways to build good credit

If you are new to credit, it will take time to establish a strong credit history and earn a high credit score. The best way to do it is by using credit responsibly over time. A few suggestions include:

  • Always make payments for credit cards, loans, utilities or other bills on time.
  • Try to pay credit card balances in full each month; avoid making only minimum payments.
  • Avoid keeping your credit card balance at or near the credit limit and don't exceed it. Consistently using most of your available credit can hurt your credit score.
  • Resist applying for numerous accounts, because excessive credit inquiries by lenders can lower your score.
  • Try not to make frequent balance transfers from one account to another.
  • Finally, it sounds silly, but unpaid parking tickets, library fines and other fees can show up on your credit score as unpaid debts.

Brought to you by College Parents of America

Source: Parents, Teens and Money, co-sponsored by Chase and College Parents of America

|


stay connected

Sign up for our free email newsletters and receive the latest advice and information on all things parenting.

Enter your email address to sign up or manage your account.

Facebook icon Twitter icon Follow Us on Pinterest

editor’s picks

earth day

celebrate our
planet with
these activities
and crafts.

GO

highlights

Healthy Smile Checklist for Kids
Have better dental check-ups with this free printable checklist that helps keep your child flossing, brushing, and smiling! Brought to you by Philips Sonicare.

Kindergarten Readiness App
It's kindergarten registration time! Use this interactive kindergarten readiness checklist, complete with fun games and activities, to practice the essential skills your child needs for this next big step. Download the Kindergarten Readiness app today!

8 Easter Egg Decorating Ideas
Need some fun ideas for decorating Easter eggs with the kids? Look no further for colorful and cool designs!

7 Ways to Curb Kids' Exposure to Violence
American children are exposed to violence more often than you might think. Learn how to limit your child's exposure to violence and manage the mental health and behavioral effects it can cause.