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

|


family games

Everything you need for family game night!


highlights

The Latest and Greatest Book for Kids
Search our interactive Book Finder for the top new books for kids of all ages, brought to you by the latest book in the I, Funny series, "I Totally Funniest."

Kindergarten Readiness App Wins Gold
Our Kindergarten Readiness app won the Gold Award of Excellence in the educational category at the 2014 Communicator Awards. This valuable checklist comes with games and activities to help your child practice the essential skills she needs for kindergarten. Download the Kindergarten Readiness app today!

Top 10 Wintertime Neighborhood Games
Who says you have to stay inside when the temperature drops? Snowy weather is a great excuse to round up your neighborhood for some outdoor winter fun and games.

2015 Family-Friendly Oscar Nominees
The Oscar nominations are in, and they include several family-friendly movies. See which flicks earned a nod for Best Animated Feature Film and other awards.

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