When your child heads off to college, it can be a difficult financial time for both of you. One way to address this issue may be to open a credit account for him or her. This can help your child cover basic expenses while building up the credit score he or she needs to rent an apartment, buy a car, or own a house. However, there are also many potential risks that must be carefully considered.
If you are thinking about obtaining a credit card for your child, you need to be fully informed about your options and their implications. A good starting place is a review of common terms and their definitions:
Having a credit card is a big responsibility on anyone’s part, especially for a young adult about to enter college. However, with the right information, it can be a rewarding experience for a college student.
Unfortunately, mismanagement of a student credit card can create severe financial problems for young adults with little “real world” experience. If you are struggling with significant debts, bankruptcy may be a viable option. For a consultation with an experienced Birmingham bankruptcy lawyer, please contact [firm-name] at [phone-number].