Help Teens and Young Adults Start Building Credit
As a parent, you want to prepare your child for a financially secure future but you don’t need to wait until they are 18 to help them understand finances and start building their credit. Here are a few things you can do to give your teen a head start:
Add your teen as an authorized user.
Children under the age of 18 are not old enough to get their own credit cards, however, they can be added as authorized user on your own credit card account. This is a great way to boost their credit score, especially as a teen or young adult.
Teach your teen how credit works.
Go over the basics of how credit works and how certain actions will impact their credit. Need help? Watch CCCU’s webinar, Solving the Mystery of Credit Reports together and discuss ways they can build a better credit score for the future.
Obtain a secured credit card.
Once your child turns 18, help them sign up for a secure credit card. Secure credit cards are a great way to ease into earning credit on their own as well as a great tool for building credit. A secured credit card requires a security deposit equal to the credit line which the issuing institution will hold in case the bill is not paid.
Using these tips will help your teen/young adult learn about credit and credit cards in a secure environment and with your help, they will create some healthy financial habits. Another great tool is our free website Banzai Teen, which covers important financial topics like credit cards, auto loans, envelope budgeting, checking accounts, and more through real life scenarios. For additional information, contact Clark County Credit Union at 702-228-2228.