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As parents make choices about their children's credit, consumer credit counseling may help advise about finances
By Oscar Monfort on Mar 21st, 2010
Given new rules from the government, students may find it more difficult to get a credit card.
The Credit Card Accountability, Responsibility and Disclosure Act requires that people under 21 get a co-signer in order to get a credit card, unless they can prove they have sufficient funds to back up having credit card debt.
As a result, many parents may be faced with a situation where they want to help their children build their credit history, as was noted in a recent report from the New York Times. One way they may do so is by making their child an authorized user on their account.
However, that could present a danger to both the child and the parent. If a child overspends on the credit card, it could end up costing the parents in both funds and their credit score. Meanwhile, parents who aren't good with their credit could hurt their child's chances of securing loans in the future.
Experts have noted that education is key when it comes to young people and credit. Though some colleges offer financial counseling, students may consider visiting a consumer credit counseling agency in order to get advice on their finances and how to use credit.
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