dcsimg

Should You Co-sign for a Credit Card with Your Teen?

Written by admin - One Comment

According to the Associated Press, 84% of undergraduates had at least one credit card in the 2008 spring semester and half of college students had four or more credit cards. Seniors had average credit card debt of $4,100 when they graduated. Due to recent credit card legislation, unless your kid has enough income to pay monthly credit card bills, he/she cannot get a credit card without you or some other adult serving as a co-signer. Should you do it?

Let’s see. First, you are just as responsible for paying it back as the other person. Second, even if your teen promises not to charge up to the limit it could still happen. So, if you really want to help your kid begin establishing a credit history, FoxBusiness.com suggests considering a secured credit card. This type of card requires a deposit of about $250 to $500 into an account in order to receive a credit limit for the same amount, preventing credit card debt and building credit history along the way.

Share and Enjoy:
  • del.icio.us
  • Digg
  • Facebook
  • LinkedIn
  • Twitter
  • Yahoo! Buzz

Published on September 9th, 2011 - One Comment
Filed under: Uncategorized

Related articles...

» 10% Off at Select Malls With the Discover Card
» Hard vs. Soft Credit Checks and Your Credit Score
» Experian Credit Scores to Go Dark
» Beware of Bogus Credit Card Charges
» Are Credit Cards Addictive?
» Cash Captivates Credit Card Companies and Customers
» Free Credit Score From Equifax
» “Credit Crisis” Sale at myFico.com

If you found this article useful, please sign up to receive free e-mail updates:

You will receive only the daily updates, and can unsubscribe at anytime.

Comments (scroll down to add your own):

  1. NO! Well in my case i wish to god i never cosigned with my mom.
    Out of school, i had no credit, so I cosigned with my mom.
    I used it once to buy a laptop, and gave my mother the money to pay it off over the next year. It was agreed not be used without letting the other know it was being used.
    Unbeknownst to me, she never followed through with this. Not only did she max it out, she had got another in our name, and max it out, at which point she stopped paying the bills. Since i had moved out months after signing, I had no idea what was going on until I went to buy a house thinking i had a good credit history. I was livid at that point, house purchase fell apart. And here I am 8 years later still suffering from the credit damage she caused me. I was able to remove the extra card from my credit, but the original one that i signed, still haunts me.
    So, no, I would not suggest cosigning…
    I’d also make sure if you do, you keep track of the payments, she had the gall to say i never paid her my portion of the bill, sadly i had no proof as I had given her cash to put to the bills 8(

    Comment by james — Sep 9th 2011 @ 6:52 pm

Leave a comment

Subscribe without commenting

Get free updates...

Articles via e-mail:

Search this site...

Sponsors...


Credit card resources...


Recent articles...

Recent comments...

  • Leigh: Title says 35 secrets, but there is only 10…?
  • George: Personally, I think that credit cards should be paid off first since...
  • John: Hi , could someone tell me how much my credit card is worth ,, I have a...
  • mark Kesler: Where is the link to sign up online? I can’t find an...
  • teresa swett: my business was needing IRS 1040 – Schedule E earlier...
  • Marie: Hello, I have vintage credit cards I would say from the 1960’s...
  • 118 118 Money: Get more information about how 118 118 money loans work : Who...
  • Lisa Malcomb: I have a problem and cannot get a hold of a real human on...

Most talked about...

Disclaimer...

    The terms of third-party offers referenced on this website are subject to change without notice. While we strive to maintain timely and accurate information, offer details may be out of date. Visitors should thus verify the terms of any such offers prior to participating in them. Please see our terms of service for additional details.