Sunday, April 12, 2009

Credit Card Companies are Out to Get College Kids

At the point in a person's life which he or she is going off to college, they have just gained a huge amount of independence but are more than likely still ignorant about managing their finances.
It is important to be aware of your credit history and credit rating before you go to college, or the four best years of your life may turn out to haunt you financially until retirement. On top of unpaid student loans, you will have to deal with the reputation that your credit history provides anyone who you come into contact with financially for the rest of your life. Charging more than you can pay for on a credit card looks bad when you are applying for a loan for a car or a house later on in life, so it is really important to make sure you avoid that problem. When sending your child to college, it is a much better idea to trust them financially with a credit card tied to your funds, instead of allowing them to sign up for a credit card of their own. As long as you trust your child not to over charge the credit card, this method with more effectively protect his or her credit score.

Posted by: Matt Smith

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