New York, NY (PRWEB) November 04, 2013
Finance Acceleration announced a list of 3 pivotal considerations parents must face before securing a credit card for a college-age student. This list came on the heels of an October 8th ABC News article, “Crazy Excuses for Bad Credit Scores”. The article listed different excuses consumers had to offer when faced with their own poor credit scores. These excuses, though frequently touted by adults, are indicative of a poor maturity level regarding finances and money management. To avoid hearing these excuses from young adults just starting out, follow Finance Acceleration’s 4 tips and considerations.
Alan Farnham began his ABC News article with one of the myriad of excuses offered by consumers to explain away poor money management and poor credit scores. These excuses were collected by loan underwriters who were being contacted to develop loan offers to consumers. Though bad credit may not be the single most important decider in whether a family can get a loan, it does play a large role, and individuals unable to provide a legitimate, believable reason for their poor credit history will likely be unable to get a loan.
Finance Acceleration offered these 3 tips and considerations before securing a credit card for a young adult entering college. The first: Take the child’s history with money into account. If the child has a poor money management history, factor this into whether or not a credit card is a wise choice.
Second: Consider whether the child has a history of obedience. If parents set forth a series of stipulations regarding credit cards, will the student be willing to follow these stipulations? If not, a credit card may not be the right choice.
Finally: How much responsibility is the child ready to adopt? Though the student in question may have a history of responsibility, a credit card is an incredible monetary responsibility that will require the ability to say no to the temptation to purchase beyond one’s means. In the case of an already-established poor credit history, Finance Acceleration encouraged readers to view this video on getting a loan even with bad credit history.
Alan Farnham is a regular contributor to ABC News, a national news syndicate. ABC provides news in both local and national venues, including financial and business news.
Finance Acceleration offered readers 3 questions to consider before allowing a child to secure a credit card. These questions were developed to weigh the responsibility and reliability of students in money management. Though credit cards may be a viable means of developing credit, it may also be a temptation too strong for a young adult, resulting in debt rather than credit management. Using these questions, it may be easier to determine whether a student is ready for a credit card or in need of some more maturing.
FinanceAcceleration.com is an online resource for families, offering financial information and counsel regarding personal finances, including money management and maintaining positive credit scores.