Investopedia: Credit Tips for Teens
03/03/2023Credit Tips for Teens
By KARON WARREN
Published March 03, 2023
Fact checked by VIKKI VELASQUEZ
Strong credit is essential for anyone who wants to apply for a credit card, car loan, apartment, and more. Learning how to build credit now will help teens in the future. The most important credit tips to share with teens include the factors that go into a credit score, how to read a credit report, understanding credit history, and ways to build credit.
KEY TAKEAWAYS
– Teaching teens tips about credit will help them know how to manage it when they’re an adult.
– A credit history provides a look at your financial habits and payment history.
– A credit score evaluates several factors—including credit history—to determine how likely you are to repay a debt.
– Teens can be added as authorized users of credit cards to help them start their credit journey, but they’ll need to do more in the future to build their credit.
– A good credit score and strong credit history can help teens become adults who have easier access to lower interest rates on loans and more.
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