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Credit Care for Teens and Young Adults

It’s great when parents are willing to help out with their kids’ futures, but be sure that you understand all of the implications before you help your kids build credit.

A credit card is a great way to start building credit as a teen or young adult, and many young people receive their first credit card from their parents. Before you hand your teen a credit card as they head off to the mall, think of whether it’s helping (or possibly hurting) their future credit.

Authorized Users vs. Co-Applicants

Oftentimes, a teen’s first introduction to credit is becoming an authorized user on a parent’s credit card. This is an easy way to get a credit card, but it’s not usually the best way. In almost every case, an authorized user doesn’t build positive credit of her own, but if the primary cardholder gets into default, it can be reflected on the authorized user’s credit report. Put differently, your child doesn’t stand to benefit from your good credit but could suffer if you fall under rough sledding*. (more…)

Summary: Did you know your minimum credit card payment is rising? Afresh government program working to get Americans out of credit card debt is pushing credit card issuers to raise minimum monthly payments. Will you be able to make the higher monthly payment? Here are some tips for getting by.

If you’re an American, your minimum monthly credit card payment may soon be doubling. If you’re only paying the minimums now, you’ll have to be careful to adjust your budgeting to pay more.

Who’s Raising Your Monthly Minimum Credit Card Payment?

Whose idea was it to increase credit card minimum monthly payments? The Office of the Comptroller of the Currency, a bureau of the U.S. Treasury Department that has become more and more involved with reigning in the abuses of credit card companies. Yes, this credit card minimum payment increase was thought up by people trying to help you. (more…)