SEATTLE, WA--(Marketwired - Feb 19, 2014) - Like it or not, credit scores play a large role in a person's financial wellbeing. As a result, responsible parents should teach their children about credit and money management at a young age. By educating them, children will learn financial responsibility and can start building their credit. According to Creditnet.com, a leading website on credit, helping your kids build a good credit score may seem hard, but there are some easy ways to ensure that your children become financially responsible.
For parents who want to help their children succeed financially, Creditnet.com announced the 4 best tips to help your children build credit today:
1. Open a checking account and use a debit card.
Credit is built by having a good history of financial responsibility. That means your child will need banking accounts, especially a checking account. Although using these accounts with a debit card will not improve your child's credit, it is extremely important for your children to establish solid money management skills. You can help your child set up a free checking account in their name and teach them how to use a debit card wisely. Educate them on the dangers of overdrawing accounts, bouncing checks, and making late payments. Once they learn these things, they will understand the basics of responsible credit use.
2. Put a utility account in your child's name.
Before your child leaves home, you can put a utility account, such as phone, gas, or electric, under their name. Even if you are paying the bill, that bill will be under your child's name, so all credit will go towards his or her score. This is an easy way to help your child build credit, as long as all the bills are paid on time.
3. Add your child as an authorized user on one of your accounts.
When a child has little to no credit history, it can be hard to get approved for a credit card. So, adding your child as an authorized user on your accounts can help boost your child's score without having a credit card on their own. All you need to do is call your credit card issuer and add your child as an authorized user on a specific credit card. The authorized user will then get the benefit of the credit card without the official responsibility. Your child can then work on building his or her credit by using yours.
4. Get a secured credit card or student credit card.
There are certain credit cards that are easier to get approved for and will help your child build his or her score. By getting a secured credit card, you will have to secure your credit line with a deposit. Once the deposit is down, your child can use it exactly as he or she would use a credit card. With a student credit card, your child can easily get approved for a credit card specifically geared towards students. Both of these options are great for people with little to no credit and will help your child build credit fast.
Follow these tips and your child will start building a great credit score at a young age. For more information regarding credit cards or credit questions, access Creditnet: http://www.creditnet.com/
Creditnet is an authority credit card comparison site that offers innovative comparison tools to help users find the best credit card for their needs. In addition, the Creditnet Credit Talk Forum is a community of over 100,000 members that discuss credit cards, credit, debt, and credit repair daily.