Welcome and thanks for joining us today!

We love workshops to be interactive, so please feel free to ask your questions that directly relate to this topic.


Cheers,

Deirdre
eBay Community Development

Before you can talk to your kids about credit, you have to understand exactly what your credit report is, so consider this Credit Report 101.
Your credit report is your financial resume. It contains information about you and your credit history.

• This information is gathered and updated on an ongoing basis from many sources, including companies that have extended you credit.

• It is used by lenders, employers, landlords, insurers, and other service providers to help them decide whether to approve your application for a loan, credit card, job, insurance policy, or housing, or to offer you a product or service at a particular rate.

• Your credit report includes personal information, inquiries, credit history and public records. Because your credit report changes frequently, it is important to review it regularly to check its accuracy.



Chris
Equifax Personal Solutions

Find out more about managing your credit exclusively for eBay Members at Link.

With kids headed back to school, now is as good a time as ever to have “the talk” with your kids – about credit that is. Financial responsibility isn't taught in school, yet it's one of the most important lessons your kids can learn. Teach them early on about money and how to manage it. The following tips can help you talk to your young kids:

• Let them handle small amounts of money from an early age and practice making decisions.

• Show them how to do things themselves – make deposits and withdrawals, balance their accounts and spend their money how they want to. And then give them complete control.

• Let them make mistakes and learn the consequences of spending foolishly. The best way to learn that money really doesn't “grow on trees” is to buy something now and not have money for something else later.

• Set limits – let them have enough money to learn important lessons, but not so much they think it's unlimited.

Here are some interactive ways you can get your kids thinking about credit:

• Bank accounts. When your kids are old enough to perform basic math skills, talk to them about bank accounts and what it means to borrow money. Make it fun by creating a play bank where they can “borrow” money to spend on a toy or game and then pay it back with interest. As your kids get older, open a bank account with them and make it a game to see how much money they can save.

• Encourage responsible credit card use. Give your teens practice using credit cards by making them an authorized user on your account. Alternatively, consider a pre-paid credit card. Not only will this expose your kids to using credit cards, it will allow them to track their expenses and give you the opportunity to discuss responsible spending with them.


Chris
Equifax Personal Solutions

Find out more about managing your credit exclusively for eBay Members at Link.

As you walk through any college campus there are multiple booths set up by credit card companies enticing students to sign up just for the free t-shirt. What most students don’t realize is that these credit cards are not “free” money. Opening multiple credit cards can hurt their credit report, causing problems with getting a new car or even a job after they graduate.

Here are some tips to share with college students to avoid serious “credit shock” when they graduate:

1. Use credit cards sparingly
Use credit cards wisely because this is a chance to establish a solid credit history. Watch the interest rates. Don't use the credit card for normal living expenses or a night on the town.

2. Pay credit card balances in full
Credit is a loan -- and you have to repay it. Start with a card with a low limit and shop around for the best deal.

3. Keep track of your spending
Use cash whenever possible because counting out the bills underscores the connection between the purchased item and money leaving your wallet. Stick to a firm budget because that means every dollar you spend will be accounted for.

4. Look for student discounts
Clip coupons. Many businesses give students discounts, so be on the lookout for deals on plane tickets, pizza, books, clothes -- everything. The student newspaper is a good place to start and the Internet can be a gold mine for discounts.

Chris
Equifax Personal Solutions

Find out more about managing your credit exclusively for eBay Members at Link.

Hi bop729, that is a great question that we get all the time.

When you are buying new clothes or electronics the store credit card seems like a great way to save money on the initial purchase, but they could hurt your credit score in the long run.

Store credit cards may be a good idea if you pay off the balance and close the card right away. But the more cards you have, the bigger risk you carry for racking up debt and not being able to make the minimum payment that could damage your credit.

Here are a few rules of thumb for credit cards:

• Make your payments on time. One late fee or even two can really bring down your credit score and increase the rates on your other credit cards. You are the only person responsible for payment.

• Do not run up your credit. Ideally, you should keep your balance low -- less than 30 percent of your credit limit on each card.


Chris
Equifax Personal Solutions

Find out more about managing your credit exclusively for eBay Members at Link.

Hello - In your opinion what would you suggest is the best way for an 18 year old, just out of high school to start developing credit on their own who is working and attending college? Appreciate your workshop. Thank you.

Hello Junebugpines,

Thank you for your question.

One suggested course of action would be to establish a small line of credit with your bank or a retail store and ensure that you make your payments on time.

Chris
Equifax Personal Solutions

Find out more about managing your credit exclusively for eBay Members at Link.