Having a credit history and good credit score are crucial things to have as an adult. These two things can provide you with more opportunities than if you have a bad score or have no credit history. Many parents wonder if they should establish credit for their child. The answer is, yes! If you can, doing this will help your child tremendously when they are an adult.
One of the best ways to establish credit for your child is to add them as a user to your credit card or add them to a car loan. If these are your lines of credit, your child will reap the benefits of your good credit habits. By being on any type of credit with you, their credit history will start to build.
It is your job as a parent to make sure you are financially responsible for your credit if your child is on your account. Any mistake you make can negatively impact their score. If you have good credit habits, this should not be a worry.
Your child should also learn good credit habits. If you can allow them to use a credit card that is also in your name, they can learn responsibility. They will learn how to pay their bills on time and be comfortable making those payments.
Helping your child get ahead with their finances and start their adult work with a good credits core can help them move forward much faster in life. They will be able to make better financial moves and work on other areas over their credit. With your help, your child’s can have a positive relationship with finances and credit scores.