Samantha Abedoza, 16, Melbourne
Katie Kincaid, 16, Palm Bay
Anna Rogers, 17, Melbourne
You may be thinking that getting a loan is more of an ‘adult thing’, but it can be a ‘young adult thing’ too. A young adult, such as yourself, is able to get a loan or a credit card (one type of loan; there are several) and doing so actually helps to establish your credit history. Having a strong credit history will help you get the loans you will need in the future at better interest rates.
When you are ready for a loan or credit card, or you are just thinking about getting one, first consult your parent(s) or legal guardian(s). If you are under age 18, you will need their consent and approval for you to get a loan. If you are over age 18, you are legally able to obtain a loan without any consent. So, when is the right time to get a loan?
The “right time” would depend on many factors, which will vary from person to person:
Do you need a loan?
Are you ready for the responsibility of a loan?
Are you financially able to repay the loan on time?
If you aren’t financially able, will an adult be able to co-sign on your loan?
Do you have an understanding of the consequences if the loan is not repaid?
If you answered ‘Yes’ to all these questions, that means that you are ready for a loan! Think of SCCU when you are prepared to apply.
Learn How to Use Credit Responsibly
Want to know the best way to for pre-college teens to learn the fundamentals of credit and how to manage it responsibly? Get a credit card.
Financial experts point out that teens who establish credit and learn to use it when they are young can build a strong credit history that will help them get their adult life off to a strong start once they are out on their own.* By the time they go off to college or into the workplace, they will have a much better understanding of how to use credit wisely.
SCCU offers the Student Credit Builder Card for teens starting at age 15. Student account holders can apply for a credit card with an adult co-signer, who is a parent or legal guardian. Your SCCU Savings Account will be used to secure the card. You will need to have an amount on deposit that matches the credit limit, which can be as low as $300. Call Express Services when you are ready to open a credit card account. An Associate will take your application over the phone and arrange for the documents to be sent to the branch of your choice for signature.
Once you get the credit card, SCCU can help you manage it. Check out our Youth Accounts pages on SCCU.com for additional information to help you learn about money management.
*Source: Experian®
National Credit Union Youth Week is April 22-28, 2007. Stop by any SCCU branch during Youth Week to make a deposit to your Student Account or open a new “My Way” Savings Account, and receive a free gift*!
