Teens Starting Life with a Great Credit Report (cont.)
Contributed by London Kaye Brown
Their credit report is like their reputation with the bank
When a teenager applies for a loan at a bank, the bank will look at their credit report and decide wether or not they are trustworthy enough to be given a loan with reasonable interest. The bank relies on other places to accuratley tell them wether or not to loan this person money. What most teens don't understand is that their credit report is looked at more than they think. Their credit report is what determines the kind of car they drive, or the kind of house they live in.
Co-signing on loans
Most of the ads these days are directed to naive teens. Teens see credit cards as fast and easy cash. They do not understand that it is still their cash. An even more serious problem is for the parents of the teens. Many parents are co-signing for loans and other things that their teen doesn't have credit for. This puts parents in a bad situation, if their teen goes money happy and ends up not having the money to pay that loan that month, the parents credit suffers. Co-signing should purely be a trust and responsibility thing.
