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• Another way to build credit history is to start out with a "secured" credit card - a card linked to an account into which you deposit money. Typically you can charge up to the amount you've deposited and then replenish the account with more funds.
• After they've made several on-time payments, have your kid ask the lender to convert it to an unsecured card, or to at least add an unsecured amount to the account. Just make sure that the lender agrees to report your payment history to at least one of the three credit bureaus; otherwise, the account does nothing to improve your credit.
• If they qualify for an unsecured credit card, have your kids follow these guidelines:
• • Always make at least the minimum payment - on time - each month.
• • Strive to pay off the full balance each month; otherwise, the accumulated interest will add significantly to your repayment amount.
• • Avoid using credit cards for cash advances, which often incur upfront fees and begin accruing interest immediately.
• • Look for a card with no annual fee and also compare cash advance, late payment, balance transfer, over-the-limit and other fees.
• For more tips on building and maintaining strong credit, visit What's My Score, a financial literacy program for young adults run by Visa Inc. (www.whatsmyscore.org).
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• Jason Alderman directs Visa's financial education programs. To Follow Jason Alderman on Twitter: www.twitter.com/PracticalMoney.