Parents and their Kids' Credit Reports


When I was in 5th grade, I decided I was through doing my math homework. Fractions were making me miserable and I was over it.

Two days into my refusal, my teacher sent a note home to my parents. So. Busted.

Mom and Pops blew a gasket and I was put on a strict daily regimen of EXTRA math homework and zippy television. Home was about as cordial as the Cold War for the remainder of the marking period.

At the time, I was convinced the parental units were trying to ruin my life. Looking back they were just being caring and trying to teach me responsibility.

I'm lucky to have parents who looked out for my best interest and did as much as they could to ensure that I'd have a successful future.

This is why I was shocked to see that during these difficult economic times it is becoming more and more common for parents to damage their childrens' credit reports after they'd spoiled their own. In most cases, the kids are left in the dark regarding the situation and don't find out about their poor credit standing until they try to get their first apartment or take out a loan.

It is easy for a parent to use a child's name to take out a loan or open a credit cards or accounts. If these are not properly maintained, the dropping credit score stays with the child- not the parent.

Have you suffered a poor credit score on account of your parents? As a parent have you opened accounts in your child's name?

Fractions are still making me miserable, but at least my credit is healthy.

source: U.S. government blog