whats the best way to build my kids credit score?

Question

my daughter is 16y old and i want to know how to start establishing her credit now.

Answer 1

Get them a credit card, maybe one you hold for them, and have them use it lightly and pay it off always on time. Realistically, getting your kids credit cards is credit suicide - after all, like how the cigarette companies lure in youth for easier profits, so do the credit card companies. You gotta have a *long* talk with your daughter, post sentries at the mall and nail salons, bribe police officers to watch her, or just hold the card yourself and have her use it only at some times. Just be sure she doesn't talk you into 'just one day mom, let me use it on my own' not until she is a nice financially mature age... say 40. Or until they are paying a number of their own bills at least :)

Answer 2

I know in Canada you actually cannot. She would be considered a minor and would not have a valid credit score herself until she is 18. You may want to check in your area to see if this is also the case.

The most important thing you could use the next two years to do, is teach her not to spend. Teach her to use credit for things credit is intended for, big purchases you cannot afford to buy... and not for the little things you don't want to wait to buy. This way, when she gets that first Visa, or such, she doesn't run to the mall and "see what she can spend it on".

Not saying that's the way 'your kid' will do it, just saying that's the way most people would.

Answer 3

Most banks have student credit cards. You can establish it in her name, and cosign if the bank requires. Establish a savings account, ING is awesome!! That's a darn good start for any teen. However dont get stuck paying for her credit expenses. Just an FYI.

Answer 4

The best thing yu can do for her is not to let her have any type of credit card!!! If she has a job let her get a checking account and savings account, and don't do it for her!! She needs to learn how to do it for herself! Be responsible. That is the biggest step in the right direction to building good credit, learning responsiblity.

Answer 5

depends on how old they are. u should get a secured credit card for them or let them get a dept store car (high interest though). see if ur credit union or bank has a credit program for their age!