How To Help Your Kids Establish Good Credit

How to Help Your Kids Establish Good If you've made mistakes, you're not alone. 44% of Americans have a credit score of Credit Tip: When choosing a secured credit card, below 700 read the fine print carefully. Many secured cards are targeted to spenders with bad credit, and some come with hefty fees. Borrowers in this group are considered high to very high risk. eloan Only 16% of Americans have Vantage scores PRESENTED BY above 900 The U.S. Census estimated that Americans would hold $$4$ $94 billion in store credit alone by 2012 Bank Name 1215 L50 LP CARDER A In 2010, Americans had collective outstanding mortgage debt of 10.5 trillion minimize overall indebtedness minimize credit score inquiries always pay on time avoid settlements MODEL USING CREDIT FOR SHARE YOUR MISTAKES START JUNIOR OFF WITH A SECURED CARD Get your Credit Score THINGS THAT REALLY NEED FINANCING Your kids can't learn from your under control mistakes if they aren't allowed Secured credit cards let to know them. Build trust and cardholders prepay the balance set a precedent of open communication by admitting your own bad judgement. Show how you changed your behavior limit to eliminate the risk of Frequently tapping into credit for common purchases teaches children to spend, not based on default. By starting your child off with a secure credit card, BE CLEAR ABOUT HOW MUCH OF WHAT YOU "OWN" HAS BEEN BOUGHT ON CASH VS. CREDIT you will be able to correct bad behavior without consequences income, but instead based on to make better decisions the available credit. Instead, they next time. for any of his mistakes. should learn what forms of debt are logical vs. frivolous. Seize opportunities to show your kids differene between what 25% CREDIT SCORE you own outright and what you must pay off with interest. Make 20% 20% CLEAN UP YOUR OWN CREDIT FIRST sure they know that some things 19% your family uses every day, like your % OF POPULATION house or your car, won't really be Is your credit less than perfect? FALLING WITHIN 16% yours until they are paid off. Now's the time to get it squared VANTAGE SCORE away. You'll be better at helping RANGE 500-599 600-699 700-799 800-899 900-90 your kids after you've helped HIGH RISK NON-PRIME PRIME PRIME PLUS SUPER-PRIME yourself. eloan eloan.com Source: http://www.nefe.org/Portals/O/WhatWeProvide/PrimaryResearch/ConsumerPolls/PDFIFinancialDeception+ExecSumm.pdf Source: Dun & Bradstreet Study with multiple references, including http://voices.yahoo.com/do-we-really-spend-more-credit-cards-195486.html?cat=D3 and http://www.investopedia.com/articles/pf/08/pay-in-cash.asp#axzz28ZqElnhl; OR - The U.S. Census Bureau estimated that 191 million debit card holders would use 530 million debit cards in 2012. Source - http://www.census.gov/compendia/statab/2012/tables/12s1188.pdf Source: American Express - http:/labout.americanexpress.com/news/pr/2010/dat.aspx Source: http://www.nefe.org/Portals/0/WhatWeProvide/PrimaryResearch/PDF/Gutter_FinCapofCollegeStudents_ExecSumm.pdf Copyright © 2012 E-LOAN, Inc. All rights reserved.