Help your child build a solid credit score
Parents want good things for their children, and a good credit record is certainly something that falls into that category. To help children achieve one, it’s important to teach them sound financial habits. Among the most fundamental lessons is valuing the money they earn and that they shouldn’t spend what they don’t have. This is the philosophy behind building a strong credit record over time that will help children take responsibility for their own financial lives.
Access to credit plays an important role in achieving financial goals and building wealth over time. A good credit score can help make it happen.
Here are three ways that you can help your teens and young adult children build a good credit record:
1. Make your child an authorized user on one of your credit cards
This can be done prior to the time your child can obtain their own card, giving them the ability to use the card for their own purchases. You will still be responsible for paying off credit card bills, but your child’s credit score may benefit from being associated with your strong credit record. It can also serve as an initial test of how your child handles credit. Set expectations that they are responsible for repaying you for any charges they accumulate.
2. Have them build their own credit when possible
The time will come when your children will qualify for a credit card. Again, it’s important to stress the importance of paying bills on time each month. Ideally, they will pay off the entire balance monthly to avoid high
the process that helps companies rank high in online searches. Pavel Khaykin, who buys homes in Massachusetts and rents or sells them, has started blogging on topics like foreclosure.
“If someone in a town in Massachusetts is facing foreclosure, they can land on our website and potentially reach out to us,” he says.
Khaykin says his revenue has been flat over the past year because of the lower inventory of available homes and because of too-high prices.
“The sellers that are overpricing their homes when they list them are learning that buyers are not rushing immediately anymore to purchase their homes — unless it’s a highly desirable area of the city,” he says.
Brokers are stepping up their online marketing efforts. Phillips’ website offers help for homeowners, such as tips for getting a lake house ready for sale, but they have to submit their email address. It’s a tactic many businesses including retailers, restaurants and other service providers use to connect with customers.
James McGrath uses his brokerage’s incentive, a commission rebate, to get a top spot in search results. McGrath’s New York City-based brokerage, Yoreevo, charges buyers 3% and gives them back 2% at closing. Because the incentive is a prominent feature of Yoreevo’s website, the company is highly visible in a search for “commission rebate.”
The strategy is bringing Yoreevo revenue growth although the New York real estate market is struggling and there is a lot of competition among brokers.
“If you can think of new ways of getting in front of people and new ways to market yourself, you can gain market share,” McGrath says.