CREDIT ALERT!!

If you are a parent of a college student or for that matter a child over 18 living at home, listen up.

Unless you want them to become a renter or to live with you for the foreseeable future, you need to help them build a credit history.  I can't tell you how many times the graduate comes in and has no credit.  We investigate further and they don't have a rent history.  Then we find out the cell phone they are so proud of is in Dads name and his car loan and insurance is too.  And so on.  You get the picture.  No credit and no alternative credit (like insurance, cell phones, utilities etc.).

So ideally, you would help them get a secured credit card (actually two) and an installment loan even if it is secured by savings.  They will want a 12 month perfect history on these accounts.  In the meantime get some of the above mentioned alternative accts in their name and push them to pay on time.  Next week we will address what to do with these accounts when you get them.