WHY YOU NEED TO ESTABLISH CREDIT WHEN YOU'RE YOUNG

We have already tackled the topic of how to build your credit (click here), but now it's time to focus on why you need good credit and why you need to establish good credit when you are young.

• Getting approved for an apartment (and setting up utilities)
• Opening a credit card account
• Getting lower interest rates
• Buying a car
• Buying a house
• Getting a job (and holding a company credit card)
• Getting your own cell phone plan
• Getting your own car insurance

Not having credit can make the living on your own phase even harder for young people! Parents, a great idea to help your child obtain good credit is to add them as an authorized user to your credit card account.  This doesn't mean you need to hand them a credit card!  Make sure you educate them on credit cards first.  Another idea: if you plan on buying them their first car add them as a co-signer and they will reap the benefits if the payments are made on time!

College students can get great deals on credit cards and they often come with promotional offers and rewards, but again, make sure to educate your child on how to use a credit card responsibly so they don't ruin their credit.  Other than credit cards and auto loans - other ways to build credit would be things like student loans and personal loans.  Just remember to always pay your loan payment on time and never take out more than you can pay back!

If you have any questions regarding credit, please give us a call at 855-351-2265.