The earlier a teen is able to start building their credit, the better. One component of an overall credit score is the length of your credit history. So, if a teen opens their first credit card at age 16, they’ll have a jumpstart on those who don’t open their first card until they are in college. Cyprus Credit Union offers a Teen Visa to help teach teens about the power of credit. In order to be eligible for a Teen Visa, a teen must be a member of Cyprus Credit Union, have a qualified co-maker, and must use the card responsibly.
Some of the benefits of a Teen Visa include:
When those teenaged years arrive, so do new responsibilities. This could be a car, first job, credit cards, and saving for the future. It’s important that teens start taking more responsibility with how and where they are using their money. No credit card purchases should be made unless there is a plan to get it paid off. While it’s incredibly easy for your credit score to fall (missing payments, spending too much, etc.) it’s just as difficult to raise it again. The more responsible a teen is now, the better off their financial future will be.
As soon as a teen has their own source of income, they should start covering at least a few of their expenses. This could be gas for the car, new clothes, or entertainment. In order to cover these expenses they should be tracking their spending and creating a budget for them to follow.