Teaching Teenagers About Credit Scores

Before your teen turns 18, teach them credit basics. Credit scores (300-850) impact loans, apartments, even job prospects. Explain: payment history matters most (35%), keep credit utilization under 30%, length of credit history counts, avoid opening too many accounts quickly. Consider adding them as authorized user on your good-standing card to build history. When they’re ready for their own card, start with low limit and stress paying full balance monthly. Good credit habits formed now last a lifetime.