0% APR Credit Cards: How Can They Do That? During the days when the federal bank interest rates were at its lowest, back in 2002 and 2003 to be specific, countless credit card providers offered 0% APR credit cards to many consumers. Needing only to pay the outstanding balance, smart consumers were ... Genuineness of credit card processing According to buyerzone,consumers increasingly are turning to plastic over paper when they open their wallets. Yet many small businesses still don't accept credit cards. If you're one of the laggards, the entire transaction may retain the impression of ... Payday Loans: No Credit Check No Fuss Loans Payday Loans: No Credit Check No Fuss Loans Payday advance loans are the fastest and most convenient option for getting a cash advance for emergencies before your next payday. However getting payday loans and their repayments involve certain important ...
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 at 21. He was able to buy a home for forty thousand under the appraised price, get a low interest rate, finance the closing costs, and pay no money down. How could he possibly do this? His credit score is over 700.
You can help your teenager prepare for his or her financial future by establishing a high credit rating. Offer your teenager these three crucial credit tips for a great financial future:
1. Start early. Begin by successfully managing a checking account-- the first credit requirement. Wells Fargo Bank has a program for children to open joint accounts with a parent as young as 13 years of age. For a free individual checking account, Washington Mutual requires a minimum age of 18 or a manager's approval for younger account holders.
2. Apply for a major credit card at 18. It's easier to get a first-class credit card with favorable rates and terms while a student attends college before the age of 22. Why do banks want to open accounts for students who have no credit history or employment? Because lenders know that college graduates in general make more money and also pay their bills on time. Also, most consumers don't like shopping around for credit and tend to keep their credit accounts. Therefore, lenders desire to establish strong relationships with their preferred market early in their credit experience.
This doesn't mean that you as the parent need to co-sign; banks expect parents to help out with the payments when necessary. Just be crystal clear with your child what you expect regarding debt management. The purpose is to teach responsibility and to establish credit--not to go into debt.
3. Manage the credit card account with credit scores in mind. Once the account is opened, encourage your child to use the card for necessities that would be purchased with cash--not luxuries--and to pay the debt before finance charges accrue. However, don't pay the entire balance off each month; let a little roll over at least every two months. Banks don't appreciate accounts paid in full each month. More important, paid accounts don't factor into the credit score as much as an account with a low balance.
Explain to you teenager that the purpose of using a credit card is to establish good credit. To do this, a credit card should never have a balance over 50% of the available credit. The best credit scores have accounts with only 10% of the credit line used.
Setting up a checking account and a credit card account helps your teenager learn about responsible money management, with the bonus of building strong credit to finance a home.
Copyright (c) 2005 Jeanette J. Fisher All rights reserved.
TEXT-S&P cuts Florida Gas Transmission corp credit rating Reuters - 2 hours ago The downgrade reflects our expectations that credit metrics will weaken substantially during the company's $2.4 billion Phase VIII pipeline expansion and ...
Hexion Wins Dismissal of Suit Against Deutsche, Credit Suisse Bloomberg - 15 hours ago 8 (Bloomberg) -- Hexion Specialty Chemicals Inc. won a judge’s permission to drop a lawsuit over the refusal of Credit Suisse Group AG and Deutsche Bank AG ...
Switch & Data taps credit line Bizjournals.com, NC - 4 hours ago Switch & Data Holdings Inc. will use a draw on is credit agreement to help fund expanded capacity in the New York metro area. ...
Credit crunch takes shine off money market funds Reuters - 8 hours ago "The failure of the Reserve Primary Fund in the US has shown that primary credit research is necessary and relying on credit ratings is not sufficient," ...
