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Building strong credit is essential, as life without it can be challenging. To support your adult child in building their credit, encourage them to apply for a low-limit credit card.
Forbes provides several tips for college students looking to establish credit, and here’s one of their recommendations:
Have your child open a credit card, but have the statements sent to your home address. This allows you to keep an eye on their usage. Start with a low-limit card that also offers rewards points, and ensure it is paid off in full to avoid high-interest charges.
There are additional methods to build credit from scratch. Secured credit cards can be helpful, as can adding your child as an authorized user on your own credit accounts. However, Forbes’ suggestion is a solid way to build credit while avoiding the temptation to overspend. In other words, you can help your child establish a credit score without directly using a card. While learning to manage credit responsibly is important, this approach is a good starting point.
For more information, visit their full post through the link below.
Image by CUNY Academic Commons
