Establishing Credit History

intparent
Thu, 10 Jun 2010 12:23:25 +0000

The new credit card legislation passed earlier this year makes using a credit card to build credit more difficult. Most individuals under 21 need a parent or guardian to cosign, so I think it does not build your kid’s credit to have the card. There are exceptions if the person under 21 can prove sufficient income, I think.

At some point your kid may have an apartment in college. If the utilities are in their name and they are paid on time, that can help build credit. However, there is always the risk that the roommates won’t pay, and your kid is stuck with the bill.