Remember the days when you were young and stubborn? Don’t you wish that you should have known more about how credit work so you could have kept yours clean? There are many teenagers who want to have a decent financial record, but the problem is that most of them don’t even yet understand enough the subject that how important our credit score is for our daily life. You would not really want to have to do your own credit repair in the future just in case you’ll have trouble with it. It has been found out that there is an average score of 48 percent for financial literacy among high school seniors. We should all take time to help the teenagers learn more so they can grow up and maintain a healthy credit history.
First of all, every teenager should learn to care for their credit as early as possible. Another research conducted among teenagers shows that most of them think that at this point in their lives, they believe that there is actually no need to worry yet about their credit score. When you teach your kids early on, they will become aware of the three credit bureaus. They will also get to learn about their FICO score and how these pieces of information can become very vital because of how they affect everything from securing a residence to landing a job.
Bear in mind that even people you trust can mess with your credit score and this can be applicable, say when a teenager needs his or her parent to become co-signers on a credit card or a loan. Just in case mom does not pay the bill, it will still poorly reflect on your credit and your mom’s. The latest Credit Card Act states that under the age of 21, teenagers will find it more difficult to get a card. This messes up the chance for loan default just in case that the parents are financially responsible.
As teenagers, they are more vigilant to risky identity theft behavior because especially teens are the ones who spend more time plugged into devices and gadgets. This makes them more vulnerable to scams that can get them whenever they are online. When you mess up with your credit, bad credit repair will be an option in the future.
Learn about how bad credit can ruin your life and take a closer look at what the punishments can be when you mess up with your credit. Without a decent FICO score, you should know that you will pay a higher interest rate than the usual on any loan. This will only result in a loss of money on your part when you need to borrow. For teenagers to be able to crunch this piece of information, it’s advisable if you can ask them to picture in their minds what dream wedding they would like to have. Suggest them to crunch these numbers and just try to see what other fun ways they could spend their money.