Does Your Child Have Bad Credit? Try These 5 Tips to Help Boost Their Credit

bad credit

Some people have such perfect lives. They can walk into any car dealership and once their credit score comes through they are able to pick any car on the lot. Even better, if they want to go to their bank and request funding for their dream business, it’s a breeze for them.

For some of us, somewhere down the line, we were a little too careless with our credit. For me, I made many of my credit mistakes when I was only a teenager and young adult. When I was 16-years-old, I was unlucky enough to be given my first Visa credit card. My parents didn’t really do much to guide me in using it responsibly. I ended up maxing it out with no real way to pay it off. Before I knew it, it had been sent to collections where it remained so for years.

As a matter of a fact, more teens and young college students have access to credit cards now than they ever had. Furthermore, disturbing statistics have shown that for more young adults between the ages of 20 and 24 are applying for bankruptcy than are graduating from college.

Teenager Are Lured by the Thought of Buy Now Pay Later

Believe it or not, teenagers account for around $175 billion a year in credit nationally. This means teenagers are charging an average of $100 a week on their own credit cards or that of their parents. When they enter college, the temptation to live off of their credit cards is even stronger and the debt climbs even greater.

Credit card companies are like vultures waiting for young people to leave their parents’ home and enter the campus. Visa has even sent new college students advertisement mail saying things like, “You’re free from parental rule at last! Now all you need is money.”

We remember how it was in college. It is hard to resist the temptation of having that free money sitting around in the back of your pocket or in your purse. Credit cards know this and take full advantage of young and inexperienced college students.

Reports show that over 50 percent of freshmen in college are granted their first credit card, with around 83 percent of them having credit cards before they graduate. This is because American banks are paying $1 billion to universities to allow them to offer their student credit cards on their campuses.

If You Teenager or Young Adult Child Has A Credit Card, Give Them These Tips

  1. Tell them to keep an eye on their balance. One of the biggest mistakes people make, especially young people, is they don’t pay attention to their credit card balance. Remind them to pay attention to emails sent from their credit card company. If they get statements in the mail, don’t forget to check the mail. Tell them to keep their credit balance low at all costs.
  2. Pay off credit card balances when they can. Besides keeping the balances low, it is even better to keep those credit cards paid off. This way they don’t pollute their credit report with a bunch of balances.
  3. Don’t apply for credit to many times. When someone keeps applying for credit, it can cause a dip in their credit score. This is because credit companies are seeing that the person applying is wanting to use more credit.
  4. Tell them to get regular credit reports. To be sure there are no bad marks on your credit or to be sure others aren’t using your credit without you knowing, get a credit report done on a regular basis. If you find issues, contact credit repair companies to help you.
  5. Correct any errors you find. Be sure you tell them to correct any errors they find on their credit reports as quickly as possible.

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