Our Childs Credit History, Good or Bad?
During the current economic crisis, it is fair when people have a bad credit rating. However, they are trying to work hard to rebuild credit ratings slumped. They improve access to credit, saving unnecessary expenses, and pay bills on time. Consumers now see the importance of having good credit history. But is it only adults that need to be worried about bad credit?
It is possible that small children also have a credit history. There are several causes if the child could have a credit history, either good credit or bad credit. The first is the cause of the parents. Parents should have enough knowledge about credit, about everything that can form the childs credit profile. Some parents authorize their children as users of their own credit card account by asking the consumer credit reporting agencies.
The second reason a child may have an established credit history is because someone has stolen their identity. This is a negative caused and can reflect poorly on the child as an adult if the situation is not disputed immediately. People can get access to the credit profile of your child by getting a Social Security number of school records, medical records, or from personal files thrown in the trash. If the person does not have good intentions, then he will use it with no good purpose. This could hamper any future children are grown, it will hinder them in applying for jobs, apartments, or financing, including student loans.
Unfortunately, there are also cases where personal information is used by the a parent or a loved one who already has bad credit and can not get access to utilities and other services without a better credit history. They will use the childs identity and many times will leave the new credit in disarray once they get what they need.
If you suspect a childs identity or information has been used by an unauthorized person, you can contact the consumer credit reporting agencies directly to verify if a profile exists. Parents and legal guardians have the right to check on credit history on behalf of a minor. Each agency requires different protocol for verifying records so speak with a representative first. Good credit is necessary for many things. While it is possible to repair your credit, it is better to maintain strong credit as soon as credit has been established.