How to Help Your Teen Prepare for a Strong Financial Future (What Schools Should Teach About Credit)

Our college-bound son just bought his first home 21st He was in a position to buy

a home for forty thousand under the appraised price, get a low interest rate, the closing of the financing costs and pay off any money. How could he do that? His credit score above 700.

They can help prepare your teenager for his financial future by creating a high credit rating. Offer your teen the three major credit tips for a great financial future:

1. Start early. Start with thesuccessfully managing a checking account the first loan request. Wells Fargo Bank has a program for children with a parent joint accounts open at the age of 13 years. For a free individual checking account, Washington Mutual requires a minimum age of 18 years, or a manager's approval for younger account holders.

- Lenders Tree

2. Apply for a credit card from 18 years. It is easier to get a first-class credit card with favorable terms and conditions, while a college student takes before the ageof 22 years. Why did the banks want the accounts to students who show no credit history or job? Because lenders know that college graduates typically earn more money and pay their bills on time. In addition, most consumers do not like shopping around for credit and tend to keep their credit accounts. Therefore, the lenders want to build a strong relationship to the preferred market at the beginning of their credit experience.

- Lenders Tree

This does not mean that you need as a parentco-sign, expect banks to help parents with the payments, if required. Just be very clear with your child what you expect in terms of the debt. The goal is to teach responsibility and not to loans creating a debt.

3. Manage the credit card with credit scores in mind. Will encourage Once the account is opened, your child on the card for necessities, which would be purchased with cash do not use a luxury and to pay debts incurred before financing costs.However, do not pay the entire balance every month, let out a small role on at least every two months. Banks do not value accounts paid in full each month. More importantly, unpaid bills do not factor into the credit score as much as an account with a low balance.

Explain to young people that the purpose of using a credit card to establish good credit rating. To do this, should have a credit card balance of more than 50% of available credit. The best credit scores have accounts withonly 10% of the credit line used.

http://www.lenderstree.pannipa.com/2009/10/24/how-to-help-your-teen-prepare-for-a-strong-financial-future-what-schools-should-teach-about-credit/

How to Help Your Teen Prepare for a Strong Financial Future (What Schools Should Teach About Credit)

By: Gordon

POST COMMENT

Vet Tech's schooling journey UK Universities In Nigeria – Source Of Reliable & Quality Education Limited ReMOTE 37 SL MIDI Keyboard Controller Reviews - keyboard controller - Education Industry School Scholarships For Single Mothers - How to Get a College Scholarship School Year Success - 7 Tips To Help Your Child Start Off On The Right Track Real Situation of Admissions in Delhi Schools Maxfort School Dwarka – Few Things About School An Introduction To a 21st Century Education Loans for International Students - Meet the Increasing Cost of Education Facebook Founder To Donate $100 Million To N.J. Schools Preschool Fundraising Suggestions That You May Use Education is filled with Politics Skills Training or Education