Credit Cards - Building a Good Credit Score is Important

[healthy11]

Here are some articles about handling a first credit card, and building a good credit score under the revised credit card rules:

articles.moneycentral.msn.com/Banking/CreditCardSmarts/be-smart-with-your-first-credit-card.aspx?page=1

www.smartmoney.com/personal-finance/college-planning/credit-card-issuers-new-college-strategies/

articles.moneycentral.msn.com/Banking/YourCreditRating/5-new-rules-for-solid-credit-scores.aspx

finance.yahoo.com/banking-budgeting/article/113367/new-credit-score-rules-forbes?mod=series-m-article-c

blog.credit.com/2013/03/the-first-thing-to-do-before-applying-for-a-credit-card/?utm_source=Yahoo&utm_medium=content&utm_content=BO_3&utm_campaign=chase_CC_addons

shine.yahoo.com/at-home/sign-store-branded-credit-cards-130100623.html

[mamak]

I heard about the new law change in Feb and my dd (18) applied for several cards before then and received one with a 300.00 limit. I have her buying her gas on it and paying it off each month. It will also serve as her emergency card when she leaves for college. I really didn't want to get an extra card on my account for that purpose so I was happy when she squeaked in before the deadline. She is pretty responsible so I hope she is able to keep things under control. She has a student checking account since she started working a few years back. She messed up only once forgetting to move money into it from her savings. B of A forgives a student once before they charge for overdrafts.

[healthy11]

mamak, it seems like your getting your daughter signed up for a credit card was a good move, and she sounds well-prepared to handle the responsibilities that are ahead of her!

[majorv]

Our daughter is using a credit card which is jointly issued to me and her. At some point in the future I can transfer it to her name, and her credit...when she has a stable income. However, I'm a little disappointed that she can't seem to hold onto it for any length of time! We've had to replace it twice already because she keeps misplacing it. It is now lost again. She has it somewhere because there have been no charges on the card since she forgot where she put it. Maybe I can wait it out and see if it turns up before I call for a replacement.


2013 Update: For others considering sharing a credit card with someone, be sure to read this article: finance.yahoo.com/news/benefits-pitfalls-sharing-credit-card-153053002.html

[healthy11]

Here's another article about establishing good credit as early as possible: finance.yahoo.com/banking-budgeting/article/112003/how-your-age-affects-your-credit?mod=series-m-article-c

The bottom line, as we've been saying, is "use credit cards only if you can pay the balance off every month" (and if you do that, your credit score will go up, thereby saving you on interest rates, insurance costs, etc!)

Caveat: if you establish a good credit score, but then don't "use" it to buy anything for 7 or more years, it could still be hard to qualify for a loan when you do want one: finance.yahoo.com/news/first-person-737-credit-rating-still-turned-down-233100307.html

[healthy11]

From financiallyfit.yahoo.com/finance/article-112186-8684-3-the-three-most-important-numbers-you-need-to-know?ywaad=ad0035&nc

Your credit score is not the "be all and end all" of finance -- it is not an investment and doesn't generate future income -- but it does help reduce costs by lowering the expense of borrowing money. For example, if you have a credit score around 680, you might qualify for a 30-year fixed mortgage around 5% in today's market, but if you have a credit score over 760, you might qualify for a rate around 4.625%. It may not seem like much, but if you were to borrow $250,000 over 30 years, a few tenths of a percent could cost you over $20,000 in additional interest. When you combine that with the savings you might get from better rates on things like credit cards and auto loans, you start to see why a good credit score is important to your financial success.

Paying lower interest rates on debt is not the only benefit of having good credit. Some employers look at an applicant's credit history before considering them for hire, and many auto insurance companies give discounts to customers with high credit scores because having good credit is correlated with lower insurance claims. Having excellent credit can save you a significant amount over your lifetime. Learn how you can improve your credit score at myFICO.com. finance.yahoo.com/banking-budgeting/article/112171/healing-a-wounded-credit-score?mod=series-m-article-c and www.moneytalksnews.com/2010/08/16/3-tips-to-raise-your-credit-score-%E2%80%93-fast/

It should surprise no one that financial problems are a leading cause of stress, and while studies show stress is a leading cause of illness, new research suggests that there is a link between financial stress and metabolic syndrome. In light of this, it is more important than ever to focus on the right things and to get our financial numbers in order. We want our net worth to go up and our blood pressure to go down -- not the other way around.

finance.yahoo.com/news/most-debt-free-states-america-103015416.html

This article points out that while a credit score is important, it actually does NOT reveal everything about a person's finances: finance.yahoo.com/news/7-things-credit-score-doesnt-140038682.html

Here's an article that explains some of the most confusing things on a credit report: finance.yahoo.com/news/5-most-confusing-things-credit-113023800.html

[healthy11]

Here's another good article about managing credit that gives mathematical examples, and again points out how important a low ratio of actual charges versus your credit limit can help raise your credit score: finance.yahoo.com/banking-budgeting/article/113195/6-items-review-credit-score-bankrate?mod=series-m-article-c


For general information about what credit card scores are like in regions across the U.S., see www.nerdwallet.com/blog/credit-cards/credit-scores-across-america-2015/#AllMetros

[kewpie]

Recently I was reviewing a rental application from a younger couple for a family members rental property. The guy was upfront about his mixed credit history, explaining that some of the poor history came from a parent who had the same name. He really wanted the place badly and showed that he had good credit with a particular credit card. While it would have been tempting to give him a chance, the woman was barely into her 20's and already had a horrid credit history and they were expecting a baby to boot. It just blew me away how someone could have such a awful credit at such a young age. Having none or insufficent credit is one thing, but she trashed it in a few short years. I explained to the family member (who was under great pressure from an aquaintance to allow this couple to rent) that since neither of these couple was a saver, they would very likely to be a poor risk. If they ended up in court and the judge looked at their application, s/he would question WHY anyone would allow them to rent.

[healthy11]

kewpie, were the couple married, or could you have just used one of their credit scores (in this case, his) to qualify for the apartment?
(I'm wondering what if you had a potential renter who seemed single, but shortly after moving in, he or she decided to have their unannounced friend stay with them? At what point does a landlord even find out that there are now 2 or more people, and ask for credit histories of everyone who sleeps in the apartment?)

Looking at my son's college apt. situation, I know we had to cosign for his first unit, but he didn't have much of a credit history. For this coming school year, he signed a lease for a different place on his own (well, with 2 roommates) but I know he has good credit at the moment, because his bills come to our home address, and I make sure they get paid on time. Anyway, I know his lease says they're allowed to sublet, if they pay a $100 fee, but I wonder how the landlord would even know if these guys ever decided to have girlfriends stay with them, etc. (Knock on wood it won't happen, but....)

[kewpie]

>were the couple married, or could you have just used one of their credit scores (in this case, his) to qualify for the apartment?<
No they weren't married but they were expecting a baby together. His credit wasn't very good, he only one one good record of payment to one store, the rest was bad. His income wasn't that good and she was unemployed. Bringing a child into this situation didn't seem like a smart plan either.
If his partner had a job and/or a decent credit rating, maybe more latitude could have been given.

[mamak]

As a landlord in recent years there are very few good credit reports coming into our place. I have had young couple with new baby destroy my place with a dog (not allowed) peeing on the brand new carpet while they were at work and it had no where to go since there was no yard. I rarely take virgin renters moving out from home unless they have a steady work record and no bad credit. Only exception being late medical bills which sometimes can't be helped.

I have had many people submit fraudulent applications in the recent years. Verify everything and not only get copies of paycheck stubs and drivers licenses you must verify the originals in your hands to assure they didn't Photoshop or create documents. I also have been using Facebook to verify people AND who they claim to be working for. A recent eviction costing me thousands was due to my trusting a realtor to do the verification. Here are several things I found:

listed on Linkedin.com with employment at a company which was one letter off from a real company.
A copy of a forged paycheck stub from above none existent company
A supervisor listed for above loan financing company was actually a friend on her Facebook as a hairstylist and with pictures of them parting at bars.
Later after eviction, I found many aliases used and a long trail of county records of claims against her which had not shown up in her credit report.

If you find a decent applicant with bad credit who you feel you might take a chance on another option is to obtain a co-signer such as their parents who must also submit an application. Run their application and get them to cosign the lease if they qualify and have the income to pay. I would also ask for higher deposit in order to take on the risk.

My last tenant that I signed was obtained with an add in Craigslist. I stated that the prospective tenant would receive a below market rate with their good credit. I discounted the rent $50.00 and I was contacted immediately. The tenant with excellent credit and money in the bank has been there over a year and recently told me he has no intentions of moving any time soon.

Your family members are at a greater risk in attracting deadbeat tenants if they are trying to rent their place on their own. Renters with bad marks against them don't typically go through an agent and many stay clear of large complexes because they know a proper look at their report will be made. They should always do their own homework on a realtor submitted application. If they are having tenants run their own reports from a free credit website many will remove the pages that have the bad stuff and try to pass it through a private party. Even if they dont run many reports it is best to get a real credit agency that specializes in rental properties because they have access to other information that a private party would not necessarily locate. Typically you register and apply with them one time and you can use them for years.

My last evictee had the nerve to attempt to rent out my condo right out from under me as I attempted to get her out she was advertising and showing my place as if it was her's in an apparent attempt to get funds to move and probably screw her next landlord by paying the first amount and sitting on the place for the rest of the time she was there without paying another dime. Had she accomplished renting out my place I may have had to evict the second party that she moved in and been out thousands while attempting to get my property back.

[healthy11]

I just saw the following article that talked about some of the better no-annual-fee credit cards:
www.mainstreet.com/article/moneyinvesting/credit/debt/best-credit-cards-no-annual-fee

This article talks about some "non-traditional" credit card perks that some companies are offering (although there are annual fees for some of these cards) www.mainstreet.com/slideshow/moneyinvesting/credit/debt/coolest-credit-card-perks

Here's another article about advantages of having some credit cards: finance.yahoo.com/news/8-forgotten-credit-card-perks-132716371.html

[healthy11]

Here's another article that discusses the topic of "credit cards for kids" finance.yahoo.com/news/credit-cards-kids-174207901.html

And it's always important to remind young people, especially in this "social media" age, that certain things, like credit card information, should NOT be shared: finance.yahoo.com/news/half-millennials-oversharing-credit-110014778.html and also be aware of common ways that credit information is stolen:
www.mainstreet.com/article/top-5-ways-credit-card-numbers-get-stolen-with-current-technology

[healthy11]

www.huffingtonpost.com/2012/06/14/experian-new-credit-score-extended-view_n_1596943.html

There's now an effort to give credit scores even to people without credit cards:

"Experian, a data collection and credit reporting bureau, launched its new credit score, Extended View, on Wednesday. It claims that it could bring as many as 64 million American consumers who don't have credit scores into the lending fold.

Extended View takes into account a wide variety of information not included in a traditional credit score. That includes everything from payday loan repayment history to rental payment history, and even takes a deep dive into public records -- taking into account, for example, missed child support payments.

The Extended View score will be based on a scale similar to VantageScore, which has a range of 401 to 900....Experian is not the first company to open the door to credit for those who have traditionally been shut out. Last December, CoreLogic, a financial data company, launched CoreScore, which uses a similar compliation of data from third-party providers, including rental history and public records, aimed at potential borrowers with little or no credit history. These new developments in credit reporting show lenders' hunger to tap into deeper wells of customers who are outside of the traditional credit reporting box...."

Currently, consumers cannot get a copy of their Extended View credit report. Wagner said that if enough lenders adopt the new score, then it could be made available to consumers in the future. "

(That last paragraph is very important to be aware of, because unlike a traditional FICO credit score, if there are errors in what they show, you apparently don't have any way to correct it.)

[healthy11]

I'm bumping this thread again, due to the number of kids heading off to college, and recent discussions about young adults wanting to take vacation trips without their parents.... Especially in those situations, it's important to have a credit card, whether for hotel reservations, daily expenses (so you're not flashing large amounts of cash) and in case of emergencies (ie, unexpected car repair, etc.)
For better or worse, teaching our offspring to manage their finances and obtain/maintain good credit is a critical part of "growing up."

This just points out how you shouldn't overextend yourself, even if you have credit: finance.yahoo.com/news/old-sofa-hurt-credit-113026125.html

[healthy11]

IMPORTANT NEWS from www.quizzle.com : For the first time in history, about 30 of the largest credit reporting companies will be supervised at a federal level. What does that mean for you? A more accurate credit report.

The Consumer Financial Protection Bureau (CFPB) will begin supervising the three largest credit bureaus on Sunday, September 30, 2012. Under the new rule, Equifax, Experian, TransUnion and about two dozen other companies involved in credit reporting will be subject to federal oversight.

Government: The CFPB will begin its supervision on September 30, 2012
Credit Bureaus: Equifax, Experian, TransUnion will be required to provide updated and more accurate data
Consumers: Clients will be provided with higher quality credit reports (Quizzle loves this because it will help us give you the best, most accurate and completely free credit report there is!)

Why does the CFPB want to do this? Ultimately, the CFPB is hoping the decision will help you, the consumer, and put a stop to credit report inaccuracies.

[majorv]

Jul 19, 2010 22:47:34 GMT -5 majorv said:

Our daughter is using a credit card which is jointly issued to me and her. At some point in the future I can transfer it to her name, and her credit...when she has a stable income. However, I'm a little disappointed that she can't seem to hold onto it for any length of time! We've had to replace it twice already because she keeps misplacing it. It is now lost again. She has it somewhere because there have been no charges on the card since she forgot where she put it. Maybe I can wait it out and see if it turns up before I call for a replacement.

I have a question about my plan (above). I had planned to switch this card to dd's name when she had consistent income. However, it looks like that will be about 5 years down the road . She is in the last year of the college "5 yr plan" and is applying to vet schools right now...that means (except for summers) she'll be in school for another 4 years. Do y'all think I should go ahead and change the card to her name now and just plan to continue paying the bills for awhile? That way she'd have credit history when she starts working as a vet. She's been pretty responsible using the card and I know she'd give it back to me if I asked for it (if she does abuse it). I'm not sure what is the best thing to do.

[healthy11]

majorv, what kinds of things does your daughter typically use her credit card for each month, and how much does she spend? I don't know what credit limit you have on the joint card, but if it's high, you may not want your daughter to start off with the same amount. You could probably ask to have the limit lowered, but since a contributing factor to building a good credit score is to keep spending below 30% of the credit limit, it's not ideal for the card to have a really low amount either, especially if it's the only card a person has.

Personally, I think it might be a good idea to have your daughter get a new card of her own, while the current card you share is maintained. There are a number of banks that offer student credit cards, including Capital One and Citi and Discover. I'm not sure what credit limit they would give her to start with, but I would expect it to be at least $500, meaning she should try not to charge more than $150 per billing cycle on it (30% of $500) After several months of paying the bill off on time, they'll probably raise the credit limit on the credit card automatically. If it wasn't enough to cover all her monthly expenses, she'd have your joint card as well.

The bottom line is that yes, I do think it's a good idea for your daughter to start developing a credit history, and if you're willing to pay her bills for awhile longer, you'll be helping her to achieve it. (My son's credit card bills come to our house, even when he's at his college apartment. Although he saved money from his summer internship, it doesn't last the entire school year, so I end up paying some of his charges, too. We already saw some of the benefit of him having a decent credit score, though, when he bought his first used car, and was shopping around for insurance, and got lower rate quotes than most 21/22 year olds!)

[majorv]

Well...she's supposed to use it for living expenses but I occasionally see fast food purchases. I don't even use my card. I hesitate to open another credit card account, but what I might do is ask the issuer to transfer it to her name and mail it to us, and ask that the credit limit be lowered. I didn't even think about credit history helping her get a better insurance rate though. I just wish I didn't have to wait another 4 years before she's independent....she'll be saddled with vet school tuition debt, but independent.

[healthy11]

My son's apartment charges an extra fee if they pay with a credit card or give individual checks, so now he and his male roommates all write their rent and utility checks to the one female roommate (who has already graduated, and seems very responsible) therefore he doesn't use his credit cards for living expenses as much as everything else. His biggest expenses seem to be for gasoline and food (both groceries and some restaurants) but he also ends up paying for textbooks, parking permit fees, etc. at the start of each semester, so that's when he would exceed the 30% of his credit limit if he didn't have a higher credit balance or multiple cards. [Truthfully, it was also good to have more than one credit card when his wallet was stolen, since he only carries one card at a time. We immediately called the company to report the loss, and they froze his old account and said they'd issue him a different card number, but it could take a week for the new card to arrive. In the interim, he was able to use the second card (which he stores in his desk, when it's not being used.)]

[majorv]

My daughter's apartment complex also charges extra to pay with a credit card, and she'd have to do it online. They won't accept cash, so that leaves a money order or a personal check. So, I make sure she has the money in her checking account and she uses checks to pay rent. Normally, I'd say that her payment history for apt rent and utilities would help her credit history...but, it may not. She's told me a couple of times that the utility has threatened to turn off her electricity for not paying. It's not that she doesn't have the money, it's that she forgets. I told her to put a big note on the frig to remind her...does she do it? NO!

[healthy11]

Here's another article about the importance of trying to maintain a high credit score: finance.yahoo.com/news/4-little-known-reasons-keep-124938067.html

finance.yahoo.com/news/best-credit-score-123016321.html

If you're looking for a credit card that gives you the most "perks," here's a good article: shine.yahoo.com/at-home/best-reward-credit-cards-july-2013-125900371.html

[healthy11]

People may not know that there are now several different credit scoring methods: www.marketwatch.com/story/dont-like-your-credit-score-ask-for-another-2014-01-14?siteid=yhoof2 and also read
finance.yahoo.com/news/best-credit-bureau-113058052.html and
finance.yahoo.com/news/credit-score-pay-attention-120002113.html

This article explains one of the newer credit scoring methods, VantageScore: finance.yahoo.com/news/vantagescore-credit-report-calculated-121100480.html ; blog.credit.com/2013/05/ultimate-guide-vantagescore/?utm_source=Yahoo&utm_medium=content&utm_content=IB_6&utm_campaign=free_credit_reports_different

Highlights of the differences between how scores are calculated:

Vantage credit scores are computed in a fundamentally different manner than FICO scores. They start with a somewhat different set of criteria than FICO and also assign a different weighting to each segment, and those weights are modified according to economic conditions. finance.yahoo.com/news/credit-scoring-changed-since-recession-123024581.html

A comparison of the two is shown as follows:

FICO Score

The consumer's payment history: 35%
Total amounts owed by the consumer: 30%
Length of the consumer's credit history: 15%
Types of credit used by the consumer: 10%
Amount of the consumer's new credit: 10%

VantageScore2009

Amount of the consumer's recent credit: 30%
The consumer's payment history: 28%
Utilization of the consumer's current credit: 23%
Size of the consumer's account balances: 9%
Depth of the consumer's credit: 9%
Amount of the consumer's available credit: 1%


VantageScore 3.0 (2013)

Amount of the consumer's recent credit: 5%
The consumer's payment history: 40%
Utilization of the consumer's current credit: 20%
Size of the consumer's account balances: 11%
Depth of the consumer's credit: 20%
Amount of the consumer's available credit: 3%

Here's some info on how people score using Vantage3.0 : www.yahoo.com/finance/news/many-americans-bad-credit-103009245.html

On a separate topic, people should check their credit reports regularly. It won't give the specific credit score number, but could alert you to things that hurt your credit (like accounts reported as past-due, etc.) If you do find an error, this article also tells you how to contact the 3 major reporting agencies:
finance.yahoo.com/news/credit-score-sucks-because-identity-160100243.html

Equifax 877-576-5734 www.equifax.com
Experian 888-397-3742 www.experian.com
TransUnion 800-680-7289 www.transunion.com
If the error involves identity theft, call the police to file a report as well as the Federal Trade Commission at 877-382-4357.


On a completely different note, here's an article that talks about how some other countries use behavioral questions to determine credit-worthiness, instead of the U.S. credit scoring system: finance.yahoo.com/news/personality-test-replace-credit-score-130051303.html

[healthy11]

With young people heading back to college again, it's a good time to consider if they could benefit from having a credit card, especially for "emergencies." See finance.yahoo.com/news/freshmen-credit-cards-teach-college-140032181.html and
news.yahoo.com/kid-financially-ready-college-132100280.html

Here are some of the best for students:

money.usnews.com/money/blogs/my-money/2013/05/15/the-best-credit-cards-for-college-and-high-school-graduates-in-2013

www.fool.com/how-to-invest/personal-finance/credit/2013/09/02/3-credit-cards-for-your-college-freshman.aspx


The more college kids/young adults can learn about finances, the better... Here's an article that talks about what they should know: finance.yahoo.com/news/study-college-students-worry-debt-234525824.html

[healthy11]

Here's an article that talks about changes in credit scoring since the recession: finance.yahoo.com/news/credit-scoring-changed-since-recession-123024581.html and it also mentions a website where people can get their Vantage credit score for free: www.credit.com

This also points out that credit reports consumers get may differ from what lenders see: finance.yahoo.com/news/free-credit-reports-different-lender-103009406.html

Here's an article that points out some things your credit score doesn't show about you: www.mainstreet.com/article/moneyinvesting/credit/debt/what-your-credit-score-doesnt-tell-you-about-your-creditworthines?page=1

[healthy11]

This article claims that the difference a person with poor credit versus good credit may pay over the course of a year can be over $4,000 annually, if you consider loan rates, insurance rates, etc.
gma.yahoo.com/blogs/abc-blogs/much-does-credit-score-cost-134033136--abc-news-savings-and-investment.html

Here's a good general article about credit scores: finance.yahoo.com/news/8-credit-score-myths-fact-231059095.html

This study shows that just because a credit card holder is young, doesn't automatically mean they're a bad risk and won't pay their bills:
finance.yahoo.com/news/study-young-borrowers-not-equal-190058529.html

These articles point out how paying off credit card bills doesn't mean you'll have a lower credit score: finance.yahoo.com/news/paying-off-debt-hurt-credit-130027942.html and finance.yahoo.com/news/debt-free-americans-common-133047567.html and finance.yahoo.com/news/does-paying-full-help-credit-130037117.html

Do be aware that sometimes even paying off a credit card isn't reported to the credit agencies right away, so that could have an unexpected impact if you're trying to obtain a large loan, like a mortgage: homes.yahoo.com/news/here-s-how-one-positive-credit-habit-could-prevent-you-from-getting-a-mortgage-225906589.html

Also recognize the possible impacts of cancelling a credit card: finance.yahoo.com/news/ask-stacy-canceling-credit-cards-160022621.html

And be aware of some things that can hurt your credit: finance.yahoo.com/news/most-damaging-thing-credit-report-113000570.html

[healthy11]

In view of the recent theft of credit and debit information from Target stores, here are articles that gives suggestions on how to protect yourself: smallbusiness.yahoo.com/advisor/protect-identity-bank-account-target-data-breach-173652290.html and
finance.yahoo.com/news/tips-consumers-worried-target-breach-231752336.html and
finance.yahoo.com/news/changing-card-pin-only-first-213713507.html and
www.marketwatch.com/story/credit-monitoring-wont-help-target-breach-victims-2014-01-14?siteid=yhoof2
www.fool.com/investing/general/2014/02/02/dont-be-a-victim-of-fraud-9-simple-ways-to-protect.aspx
finance.yahoo.com/news/7-ways-protect-against-credit-205000220.html

Here's info about a different way credit card info was taken at a restaurant, and how you can be on the watch for it: finance.yahoo.com/news/taco-bell-identity-theft-caper-133027970.html

Here's another article about protecting your identity: finance.yahoo.com/news/10-free-ways-protect-identity-200057928.html

[healthy11]

For the benefit of parents and those who many not realize that there are significant differences between the safety of credit cards over debit cards (credit cards are better) read: abcnews.go.com/Business/top-riskiest-places-swipe-debit-card/story?id=21489159

Here's another article that highlights situations where using a credit card instead of a debit card makes good sense:
finance.yahoo.com/news/6-times-credit-card-instead-113035966.html

Here's some general info on how credit and debit transactions differ: finance.yahoo.com/news/happens-swipe-debit-card-credit-113015478.html
____________________________________________

If you'd like to get your FICO credit score (this is separate from your credit report) for free, here are several ways to do it: finance.yahoo.com/news/want-free-fico-score-162249904.html
Also see finance.yahoo.com/news/here-s-where-you-can-actually-get-a-credit-score-for-free-201930562.html
and Credit Karma is another: news.yahoo.com/google-bring-good-fortune-credit-karma-155150336--finance.html

[healthy11]

I just read this alert; if you've had a recent credit card charge for $9.84, it could be fraudulent: finance.yahoo.com/news/were-you-charged--9-84--it-might-be-fraud-203006635.html

[healthy11]

I don't want to sound like a broken record, but the value of having a good credit score is SO important. It can impact not only loans, like for cars and home mortgages, but even auto insurance, cell phone plan fees, etc. While not all young adults (or even some older adults) have the self-discipline to use credit cards wisely, if you can assist your offspring in establishing good credit use, it can have many benefits in the longer term.

www.creditcards.com/credit-card-news/cellphone-credit-check-1270.php

Yesterday, my son went out and bought yet another used car. (He's going to sell his older gas guzzling van that only gets 10 mpg.)
In seeking insurance rate quotes, one agent marveled at how low his premium was, compared to most kids under age 25. While some of it is due to having a good driving record, many other people have no accidents or tickets. What set him apart, according to the agent, was having a credit score that they rank "2" on a scale of 1-16, where 1 is best, whereas the average person his age is around an 8 or 9. [His FICO score is 747, according to his latest Discover It credit card statement (they show a score for free every month)and his VANTAGE score is 760 according to Quizzle.com, which gives free credit scores and Equifax credit reports every 6 months.) Recently, my son also got a credit card application that earned him 50,000 free airline miles, with the first year's credit card fee waived. We explained to him that it would be acceptable to take the card and accumulate the miles even though he has no specific vacation plans, because they'll remain in his "frequent flier account" even after he cancels the credit card, which he should do before the first year is up and they start charging an annual fee.