Recent surveys have shown that 60 percent of employers are using credit scores as a means of weeding out new hires. With the job market still slow many employers are receiving more resumes than they have positions to fill. This has created an environment where companies can become even more picky about who they hire.
If you want to help your college aged child have a good start in the working world, below are a few tips:
- Regulate the amount and types of credit cards your child gets. While the Credit Card Act has restricted credit card companies' ability to market on-campus, many are now depending on mail-order to snag youth with their credit card offers. Helping your child choose how many and which types of credit cards for them is the start of making sure they maintain a strong credit score.
- Make sure your child is making timely payments on their credit cards. One of the biggest reasons for lowered credit scores for college students is missed or late payments. Using a credit card and living on their own for the first time can be a confusing and stressful experience for your child, help them by working them to design a system for having their bills paid on time. One way to do this is by setting up automatic bill pay through their bank account.
- Have your child check their credit score every year and take the time to review it with them. If you see a history of late or missed payments, sit down and have a talk with your child to make sure they understand that their failure to maintain their credit card account could prevent them from landing the job they want after graduation.