The article "TEENAGERS AND CREDIT CARDS" talks about family, it was released by Neil Goldberg.
If you have a teenage son or daughter you can be sure they are
getting offers for crdeit cards. And while we all know how
important having a credit card is in case of an emergency, it is
just as important to make sure your child understands the
responsibilities having a credit card brigns. So take a few
moments to talk to your kids beofre they sign on the dotted
line.
Make sure they are aware of:
• The annual perecntage rate. • What is the grace period?
• If
you are late how much is the late fee?
• What happens if you go
over the limit? • How is the minimum payment figured?
Then you need to set the ground rules. How is that card going to
be used – for emergencies only, gas or for all general
purchases?
What is their spenidng limit? Who is going to pay the
bill –will you each contribute and if so what percentage?
Where
will the child’s money come from –summer job or after school
job? And if the latter, how will that affect studying, homework
or participating in after school activities?
Most importantly, make sure your child fully understands that
his payment history on that card and all future credit
extensions will directly impact their credit report. Impress
upon them the need to keep their credit score as high as
possible, not only to help obtain additional credit when they
need it, but to obtain the most favorable interest rates
possible.
Besides affecting their credit, they also should be
made aware that their credit report can impact many other facets
of their life; for instance their ability to get a job, get into
college, get housing, or enter and remain in the Armed Forces.
So before they assume the responsibility of accepting a credit
card, make sure they fully relaize the need to treat it with the
utmost respect and are aware that, whether good or bad, their
credit history will have a major affect on many areas of their
adult life.
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