How Parents Can Help Their Children Start to Build Credit

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As parents, you want to do the best you can for your kids by teaching them good habits from an early age.

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Starting early can yield untold benefits as you age and have evolving credit needs for purchases like a new car or even starting your own business.

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Credit is the concept of borrowing money to pay for goods or services today with the implicit understanding you will repay it later—usually with interest.

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Your credit score represents a single measure of your overall creditworthiness, though the models used vary.

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Making timely payments is important for your credit score, representing as much as 35% of your total FICO score.

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A high credit utilization ratio (above 30%) will likely hurt your credit score while a low one (below 20%) may help it or not have any effect at all on your credit rating.

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Swipe up TO READ more ABOUT How Parents Can Help Their Children Start to Build Credit

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How Parents Can Help Their Children Start to Build Credit

As parents, you want to do the best you can for your kids by teaching them good habits from an early age.

Starting early can yield untold benefits as you age and have evolving credit needs for purchases like a new car or even starting your own business.

At What Age Can You Start Building Credit as a Child?

Credit is the concept of borrowing money to pay for goods or services today with the implicit understanding you will repay it later—usually with interest.

What is Credit?

Your credit score represents a single measure of your overall creditworthiness, though the models used vary.

What is a Credit Score?

Making timely payments is important for your credit score, representing as much as 35% of your total FICO score.

What Goes into a Credit Score?

1. Timely Payments

A high credit utilization ratio (above 30%) will likely hurt your credit score while a low one (below 20%) may help it or not have any effect at all on your credit rating.

2. Credit Utilization Ratio

Swipe up TO READ more ABOUT How Parents Can Help Their Children Start to Build Credit

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