The new credit card reform act puts a lot of good new protections for consumers. One of them makes it more difficult for young adults to get credit cards. The new rules prevent anyone under 21 from getting a credit card without proving adequate sources of income or having a parent or guardian co-sign.  While these new protections may be helpful, what should you do to help your children build their credit?

First, you can authorize your child on your credit card. As long as you make your payments on time and have a responsible amount of debt, your child’s credit score will benefit. You will be ultimately responsible for whatever purchases that your child makes; therefore, you need to set clear guidelines before your son or daughter begins using your credit card.

Second, you can co-sign a credit card for your child. This means the credit card will be in both of your names. And while it is your child’s credit card, as a co-signer you will be responsible for their debt if they happen to default.

Is your bad credit holding your children’s future credit back? You might want to consider ways to get credit card debt help. A Missouri chapter 7 bankruptcy may be able to erase your credit card debt. You should make sure to contact a St. Louis bankruptcy attorney to determine if a bankruptcy is right for you. For more information, be sure to read my  Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know.”

Tags: Credit Card Debt Help, credit card reform act, credit history, erase credit card debt, Missouri Chapter 7 bankruptcy, St. Louis bankruptcy attorney

This entry was posted on Monday, August 23rd, 2010 at 12:51 pm and is filed under credit card debt. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.