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Related article:  How to Establish Credit

Give Your Student a Higher Education in Credit Cards

Give Your Student a Higher Education in Credit Cards

by Center for Personal Finance editors

Your student might be vulnerable to financial trouble if you don't talk to him or her about credit cards. Without any knowledge of how credit works, your student could easily sign up for a bad deal just to get a free T-shirt.

Make these messages loud and clear to students before letting them fly the nest:

Credit Scoring

Source: Greenpath University

Understanding Credit Scores 
Can you tell me how your credit score is calculated? A credit score is based on the information provided in your credit report and it indicates how likely you are to pay your bills. The score typically ranges from 350-850. The higher the score, the better. That’s it you say? Why yes it is. Then why is it so hard to figure out what your score is at any given time? Part of the problem is that there are multiple types of credit scores. There’s the FICO Score, Vantage Score and even scores geared toward specific purchases such as an automobile scoring model. But for the most part, scores all look at the basic same things. Let’s break down the FICO Scoring Model as that seems to be one of the most popular:

Using Credit Wisely

Source: Greenpath University

Using Credit Wisely
When I was a freshman in college, a sorority was pushing credit card applications for JC Penney. I applied and voila, a few weeks later I had a silver card in my hand that allowed me to spend $500 on whatever JC Penney sold. I had power in my hand! I marched right off to the store and used my card to buy a new outfit. (I wanted to look good for a party after all!)

"When the bill came, I did the unthinkable. I paid my bill in full."

Six Slam-Dunk Ways to Trash Your Credit Score

Six Slam-Dunk Ways to Trash Your Credit Score

by Susan Tiffany, CCUFC

It's a fact of financial life that if you want to borrow money, your lender will look at information about your credit habits before deciding how to price the loan.

If you're a good risk, you won't have to pay as much interest for the privilege of borrowing. If you've been a credit screw-up, expect a lender to charge you more. That's only fair, not only to the lender but to other borrowers the lender serves. It wouldn't be right to expect responsible borrowers to subsidize careless borrowers.

This is where your credit score comes in. It's a three-digit grade for your credit behavior to date. It changes all the time, based on your improving or deteriorating credit habits.

Some of the ways you can damage your credit score are pretty clear, while others might surprise you.