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Credit Score News, Tips & Advice « Credit Scores > Credit Score Tips > Teaching kids on how to get a good credit score

Teaching kids on how to get a good credit score

By George Hauser
Published: Wednesday, September 29th, 2010

Comparing the era now and half a century ago, young people are enjoying more benefits and privileges with the teenagers long time ago. They’ve got the laptops, mobile phones, gadgets and yes credit cards as well. Simply put, adults and teenagers are now enjoying almost the same advantages. Aside from technological stuff, one of the things that teenagers of this day would want to have for themselves is the credit card. And with things getting more and more possible each day, young people can already be owners of credit cards.

There are parents who are very willing and confident giving their children credit cards despite the possibilities of over spending that could be their burden. For parents, this could be a big financial burden for them for they have to make payments on purchases they didn’t make.

Some parents don’t actually focus on the financial aspect of giving their kids a credit card. Some may even raise a brow on the idea but it is goof high benefits giving a kid a credit card. The positive effect may not still be seen now but you will in the lon run. giving them a credit card will teach your kids the right way on how spending should be handled. It will develop in them a great sense of financial responsibility that they can use when they grow older and on their own ways. When the time comes that they have to manage their own finances, they don;t have to go through a great financial burden since you’ve already taught them at an early age.

Credit score plays a very important role when a person is applying for a credit card, a loan or a mortgage. This is the major factor which will determine whether or not they deserve to get an approval. For people who weren’t trained on how to handle their finances at an early age, keeping a good credit score is a very hard thing to do. But the truth is that an impressive credit score is pretty much easy and possible.

Always pay your bills on time no matter how big or small the amount is. Unpaid or late payments incur interest which could be an additional expense for you. You don’ only add your expenses but you too are compromising your credit score. A lot of delinquencies or defaulted credits are entered into your report and affects your credit score.

As much as possible don’t make big purchases using your credit card especially when you don’t have plans of paying off the whole balance at the end of the month. If it is not really needed then don’t buy something. If you are guilty of shopping out of impulse then it is time to start changing that attitude.

A good credit score will let you enjoy the best deals and rates when it comes to credit cards, loans and mortgages. You’ll never know when you’ll need extra cash but with a good credit score you don’t have to worry much for lenders are more than willing to invest on you.

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