Building and Understanding Credit | Chase


[forceful music] Hi there, I’m Lynnette Khalfani-Cox, the Money Coach. With a daughter in college,
I’ve learned first-hand how important it is to
discuss the building blocks of good credit with her. Why? Because she’s
making choices today that impact her credit score and
therefore her financial future. So when you sit down
to discuss credit with your son or daughter,
start with the ‘why?’ Why is credit important
for a college student? Well, good credit can help
your child get approved for an off-campus apartment or even a home loan
down the road. There are four things
you should discuss with your son or daughter on how to build and
maintain good credit. First, explain how
credit is measured. An easy way to explain
credit scores to your child is to compare them to GPAs
or grade point averages. Just like their GPA is based on all the grades they’ve
received in various classes, their credit score is based on all of their
financial information that is found in
their credit files. Like if they’ve paid their
credit card bills on time. Second, ask your child to check
their credit score and report. Have them review the
report to make sure the financial information
reflected there is correctly and
accurately reported. Chase.com/creditjourney
is a great resource to check your credit score and your TransUnion
credit report for free. The Credit Journey website
also has information on how to obtain all credit reports
and it can point them in the right direction
to resolve any errors. Third, when reviewing
their credit score, explain that it’s a number,
ranging from 300 to 850 points. The higher your score,
the better your credit. Let them know that if their
credit score is under 600, they may have trouble securing
credit in the future. If their score is
between 600 and 700, they may only get loans
at higher interest rates. But scores of 700 and above are
considered good to excellent. Lastly, you can help your
child build strong credit by adding them as an authorized
user on one of your credit cards or by advising them to open their own first credit card account and using it wisely by paying off the balance in full each month. Wanna learn more? Visit
chase.com/creditjourney for a free credit
score and to understand the factors that
impact credit scores. ♪

1 thought on “Building and Understanding Credit | Chase

  • I added my daughter as an authorized user on my CHASE credit card a few years ago and as a college freshman she now has a 720 credit score YET when she denied a card of her own when she recently applied. I know she will get a credit card from one of the major banks as she starts college. I was hoping it would have been Chase as I have a long standing relationship with them but it doesn't look like that is a possibility. I am so disappointed with Chase.

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