Teens Starting Life with a Great Credit Report
Contributed by London Kaye Brown
The importance of a good credit report
It is a known fact that a great credit report is one of the most important things an adult can have. Your credit report can influence many things;
1. Getting loans
2. Buying homes
3. Buying cars
4. Interest rates on loans
5. Getting bank accounts
6. Getting into certain schools
7. Getting desired jobs
So you can see that credit is very important. Teens need to be taught to manage their credit so that later in life they can have the finer things.
Stearing clear of credit cards
A problem that teens are currently facing is that as soon as they turn 18, the credit cards start coming in the mail daily. While credit cards are great for the convenience, but what may teens don't understand is that they have to pay that money back. That seems like a very juvenile mistake to make but it occurs more often than you would think. Teens must be taught about interest. Teens need to know that the cost of something purchased on a credit card could soon double or ever triple the original price due to interest.
Knowing what they can pay for while maintaining their credit report
Teenagers that are new to living out on their own rarely have a budget. The first thing a teen wants is a place of their own, there's the cost of rent. Then they need a car (which is rarely and old beater), so there's a car payment. Then they need a cell phone, there's some more money. What they don't understand is that all of these new purchases are affecting their credit reports. Teens need to be taught that if bills are not paid on time they will have a poor credit report. Maintaining a good credit report is much easier than getting it back after you have had bad credit.
