Tips on Showing Your Child How to Use Credit Wisely:
In the past, credit card companies rushed to college campuses (even some high schools) to sign up students who had no visible means of ever repaying the credit card. Since they had no income to even make the minimum payments, it’s ruined their credit for many years to come.
Ideally, you might want to start the process when your child reaches age 16.
Even if you consider co-signing a credit card for your child, there are a couple of steps you can take to make sure they understand how to use credit cards wisely.
Step 1 – Open up a checking account and ask for a debit card to be included with the account. Review how much is in the account, how much they have to spend, and talk with them about overdraft fees if they take out more money than is in the account. If they manage that responsibly for 6 months (to a year), go to the next step.
Step 2 – Add your child as an “authorized user” to YOUR credit card account. He or she will get a credit card with their name on it and they will start to establish their own credit history. Set a limit. Determine who will pay for each charge, and how. Do that for 6 months or more, and if they don’t comply, remove them from the card and have a good heart-to-heart talk about spending, budgeting and credit scores.
Step 3 – If they have demonstrated that they can handle a credit card responsibly, you might want to co-sign on the credit card with them. Make them accountable. Ask them to share the charges and repayment terms with you. Create a User Name and Password so you can also watch what’s happening online. Show them how to do the same.
Remember, as a co-signer you are on the hook, too, and if they fail to make payments, it reflects on your credit also.
Published by Heather Paige Moody
Welcome! I'm Heather ( AKA: Paige) Moody . A Little About me: I was born and raised in a small town in Eunice, Louisiana where I started my first mortgage company in 2005 at the age of 21 years old. Since 2005 I’ve grown to know everything when it comes to the industry, from owning a mortgage company, processing loans, mortgage underwriting rules, to now managing.
Why I’m in the Mortgage Business:
My family has a history of Banking and real estate . I could see at an early age how satisfying the real estate profession was for them, so I started off as a Real Estate agent and quickly realized that the mortgage side was my passion.
I am a mother of 4 very active kids that have been/ are being raised in the Real Estate /mortgage world. I have always said that their first baby blanket was a file folder.
I love to be able to teach that going the extra mile for others is such a blessing to us as well as the other person. Most importantly that no matter what the obstacle is that we must work hard and give it our all in all that we do. Our family lives at a field or a gym for most of the year. Between baseball, cheer, volleyball, football and anything they can possibly sing up for, I have developed little-known disease called Bleacher Butt.
When I am not working ( or should I say.. not behind my desk) or attending an event for one of the kids . I really enjoy bible studies , reading and listening to podcast. My children go to 2 different schools and I am so blessed to be part of two Mom’s in Prayer groups. It is a National Organization that Moms can get together to pray for our children and our school.
As the Southern Mortgage Mom, I help homebuyers and Real Estate Agents make the Mortgage buying process as stress free as possible. I have been called the miracle worker by clients and agents( on occasion) because I have saved some mortgage loans that others have denied . It has nothing to do with miracles , but all to do with knowing how to get a loan approved.
If I am lucky enough that you chose me or my team as your go to lender, I promise that I will be fair, I will be honest and you will feel like family when you sign the final papers and I will keep in touch (till you tell me not to) long after the mortgage loan is closed. Looking forward to working with you when it comes time to buy a home or refinance your current mortgage.
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