Question of the Day: Can you name ONE of the ways that consumers, under age 25, establish credit?
Here's a look at credit-building tools, and how to use them to earn a good credit score.
- Why do you think that credit cards tend to be the entry point for establishing credit for so many consumers?
- Almost no one in any age group establishes their credit for the first time by taking out a mortgage. Why do you think that is true?
- How do you think that you will establish credit?
Behind the numbers (NerdWallet):
"Building credit can be tricky. If you don’t have a credit history, it’s hard to get a loan, a credit card, or even an apartment.
But how are you supposed to show a history of responsible repayment if no one will give you credit in the first place?
Several tools can help you establish a credit history:
If your aim is to get a credit card, you could start with a secured credit card or co-signed card, or ask to be an authorized user on another person’s card.
If you want to build credit without a credit card, you might try a credit-builder loan, secured loan, or co-signed loan. There are also ways to use rent, phone, and utility payments to build credit. Some of these ways are free, others carry a fee."
Find out the dangers of predatory lending by having your students play the latest McKinney-NGPF game, Shady Sam.
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