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We'll look bad my bad bowling college campuses looking for new customers but a rate -- he -- and I think that pizza I think.
-- -- -- Hundreds of dollars so what's -- students -- where they giveaways that are.
And sign on the dotted line we asked -- debt pilot he is -- -- -- on my expert joins us from active at -- think your being with us today.
Thanks for having me.
I want it perfectly I got a discover card on -- on campus they were -- in the I think what the heck.
I will say that I graduated with probably eat out six or seven dollars with a credit card debt which it doesn't get a lot of money but this is -- problem.
-- it did that affect you -- usual because the typical student graduates with that.
-- has anywhere from 3007000.
Dollars in credit card that I've heard from parents whose kids have 78000 credit card debt so it can be a real problem.
They went out this card accountability responsibility.
And disclosure at the card active he -- -- -- gonna go bought up and preventing it it maybe doesn't look too far.
Indeed stepping -- credit card companies.
Well yeah the good the bad with the card act issuers are not allowed to issue -- card to anyone who is under 21 unless they have a co signer or they can demonstrate they have the ability to handle alone I'm around.
Here's the downside parents are going to start co signing for their kids and that's something I have not recommended.
In the past because once you -- you're tied to that account and even in the best case scenario everything gets paid on time guess what it's on your credit it's still affects your debt ratios and and who knows -- -- gonna handle that account.
Okay so what do I close sign could not thinking as a parent I want my kid to have access to something -- that got her big moment.
So what -- -- -- on the card and then a year down the line I take my name off.
Does that work.
I think get the best strategy absolutely post time until they establish their credit and -- when they turn 21 they can get their -- card.
Let them make their own mistakes close out the account get yourself -- another option because not all parents have good credit right now -- can coast time for credit cards.
Another option may be a prepaid card and that's where you load money on the card and they can only spend the money that -- put on the card and given them to spend.
There's also the debit card option as well what you know what's in the -- is apparent right now I would imagine that that is becoming more and more popular.
Yes and there's a little different speaking debit prepaid cards in that debit cards at least until the new federal rules go into -- -- this summer.
Still I need to over -- and a debit card I wouldn't put my child my checking account right pay all my bills because.
You know who knows that they forget about a purchase suddenly you're bouncing your mortgage but -- -- prepaid card you can get a thousand bucks and that's what they have to spend.
Is it better and then you add them -- to my existing account.
That's not a bad idea it actually can help them establish credit pretty quickly as an authorized user and the nice thing I like about authorized users.
Is that it's not hard to take them off.
So with a -- -- account when you -- part ways you have to close the account with an authorized user.
You can just remove them after they've established their own credit.
Jerry thanks so much it's good information.
-- jet pilot credit dot com I really did get -- discover card and a piece of pizza.
All in one after Baghdad's ruin your credit for a slice -- let the punishment when -- slightly better and --
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