How to Build Credit for a Young Adult

Video Transcript

"I'm Roger Groh and we're here today to talk about how a young adult could build their credit. How can your kids really help themselves going forward? Well, I have children of my own, so really, I'm going to tell our story. The best thing that your kids can do is to get their name on databases that will track how many times on time that your children have made payments for credit cards, for student loans and for other pieces of debt that they've borrowed. Maybe a car payment that they've borrowed. The best way to do it, even if a kid doesn't need the credit early, which is terrific, is for you the parent to go to your local bank and co-sign a very small note, ah you know, for five hundred dollars or a thousand dollars for your kid, and then actually make the payments. You make the payments, on time, and if that happens for a year, you're credit score for your child will be in the very high six-hundred, seven-hundreds, which means when it really comes time to borrow money, to buy a car or to buy a home, you'll be getting the best rate possible. So that's how you, as a young adult can build your credit. I'm Roger Groh."