Well, I figured that if I can help establish his credit, he’ll be less likely to open a bunch of accounts just to get a credit history. This would have to go along with us teaching him financial responsibility. I’ve learned a lot of things in the last several years and am working on getting out of debt. Let’s face it, he’ll need credit to rent a car, hotel room, apartment or buy a house.
Also, now insurance companies and employers are looking at credit reports to see how stable you are. An employer will look more favorably to someone with good credit than with no credit history or credit score. My mom never taught me financial responsibility Being a single mom, she barely made enough to support us 3 kids. My dad gave her minimal child support. She is still not good with her money.
That being said, I went crazy my first year of college and ended up filing BK when I was 22 years old. That was 16 years ago and even though I have debt now, I am more responsible with it, have no problem paying the bills and slowly getting out of debt We just bought a house, so it set me back a little. So, if my son can learn good financial habits, have the credit history to get him through college, I am hoping he won’t find the need to get a bunch of credit cards.
Like I said, it could backfire and bite me in the butt, but I am following the advice of a financial guru (Suze Orman) who says it is a good idea to do this for your children. Dave Ramsey says no credit ever, but not everyone has thousands of dollars sitting in the bank at age 18 either.
I have lived without a credit card for many years. If I do get one someday it will be with USAA. They answer to their members, not shareholders like these other financial instituions do.
Makes a big difference!
Unfortunately, not everyone is eligible for membership with USAA. You can find out if you are eligible though by going to USAA’s website. www.usaa.com
It’s almost entirely for military and family , but I know someone who works for the FBI who is a member and has no connection with the military. I know others who are members because a parent remarried someone in the military. It could pay to find out if you are eligible for membership. Their service and prices are second to none .
On a differnt note, the book MAXED OUT is on sale now. I got my copy yesterday and have read about half. It’s an intersting, informative book.
I also have Suze Ormans new book about women and money. Anyone read it? I’m going to finish Maxed Out first and then read Suze O.