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CREDIT GLOSSARY

Katie's Credit Glossary

PREPARING KIDS FOR CREDIT, STUDENT ISSUES

Kids, Money, and Credit
College and Credit Cards, Student Credit Cards
How to Pay for College: Financial Aid information

ASK KATIE

The Truth About Debt Consolidation Programs
Credit & Divorce
Child Support & Deadbeat Dads
Choosing the Right Credit Card for You
Personal Bankruptcy Explained
If You Have Been Treated Unfairly By a Creditor

SCAMS!

Debt Consolidation Scams
Debt Elimination Scams
Debt Settlement Scams
Christian Credit Scams
Predatory Lenders
Identity Theft

BUYING A HOME

Tips for 1st Time Home Buyers
What to do if You've been Denied
Credit & Home Buying
Negotiating a Home

NEGOTIATING AND REPAIRING CREDIT

Negotiating Debt With Your Creditors
Your Rights Regarding Debt Collection
Free Credit Repair: How to Clean Up Your Own Credit
Easy Steps to Building or Re-establishing Good Credit
Disputing Mistakes on Credit Card Statements

CREDIT REPORT INFORMATION, CREDIT SCORE INFORMATION

How to Get Your Credit Reports
How Long Do Entries Stay on My Credit Report?
How to Read Credit Reports
Credit Score, FICO Score Explained
Innovis: The Fourth Credit Bureau

LEGAL INFORMATION

Federal Law Concerning Credit

LINKS

Katie's Links

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DISCLAIMER

Parents must talk to their kids about credit cards before they go away to school. The moment kids leave the house they will be targeted by credit card companies. Most college campuses do not allow credit card companies to set up booths on campus and sign up students anymore. Don't think this has stopped them. Credit card companies obtain lists of phone numbers and addresses of college students and they ferociously contact them day after day to get that coveted college credit card account. Students are prime targets for these companies whose employees generally work on a commission and bonus structure. Believe me, your kids are seen as easy prey and they are being hunted.

Educate, Educate, Educate! Kids must be taught about credit and credit cards before they go away and become the targets of these companies. The idea and thought of "free money" is usually too much for the average broke college kid to pass up.

College credit cards interest rates usually start at 23%. Combine that with $30.00 fees for late and missed payments and these kids can easily rack up monthly payments of hundreds of dollars a month. It doesn't seem to matter to these companies that the kid is either unemployed or only works part time while attending classes; as long as they are a student they will get credit. I sometimes get the feeling that credit card companies count on the students families to bail them out rather than have their childs credit ruined and indeed, I have dealt with my share of parents that are doing just that.

As a Credit Counselor I have worked with hundreds of kids that have fallen into the credit card trap while away at school. It's frightening; these kids are graduating with thousands of dollars in school loans and thousands of dollars in credit card debt.

Welcome to the real world, Kiddo.

The bottom line is that kids have to be made to realize just how dangerous that this situation is. They are going to need a decent credit report after school in order to get jobs and rent apartments. What they do while they are in school can affect them for the rest of their lives.