Part 1: Background
Part 5: Meeting the Spending Requirements
Part 6: Taking Care of Credit Reports
Part 7: Conclusion
Part 1- Background:
A lot of people believe the combination of young adult + credit card equals debt and troubles. I don't think so. I believe young adults should learn how to use credit responsibly as this is one of the most important lessons in their life. I currently have 10 credit cards with various banks (AMEX, Chase, Citi, etc) and I earn over 300k miles over last 2 month from credit card bonuses. I can and so can you!
What is credit card churning? Credit card churning is the act of applying for credit cards for the main purpose of earning sign up bonus. This is how you can easily travel for very low cost or at no cost to you at all!
What is credit card churning? Credit card churning is the act of applying for credit cards for the main purpose of earning sign up bonus. This is how you can easily travel for very low cost or at no cost to you at all!
In this series, I will discuss several methods to develop quickly and safely credit history for young adults. It's never too early to have a good credit. I will talk about my experience and my recommendation improving my credit history and others that I have opportunity to work with. I will assume "young adults" for the purpose of this series are 18-22 years old college students who attend college/university with typical spending needs. If you are uncomfortable with credit card churning, you can just follow the basic part of building credit.
Before get started, it is a great idea for parents and their children to discuss about money and college. College students should take care of their bills in college instead of the parents even if the parents are paying for all the expenses. This includes, but not limited to: rents, electric bills, cell phone bills, etc. This will help students to develop a good habit of taking care of the bills before they become past due while under the supervision of the parents and build a good foundation for a stable financial status for years to come. A detailed budget is a great way to go. You can get a budget sheet from here (tip of the hat to about.com)
Coming up in part 2: how to get good students credit cards, control your budget and earn points for simply being a good student!
Disclaimer: I'm not a certified financial planner. I'm not sponsored by any company and I don't earn any commission. I assume no responsibility for any loss or damage due to my opinion. As always, YMMV.
Disclaimer: I'm not a certified financial planner. I'm not sponsored by any company and I don't earn any commission. I assume no responsibility for any loss or damage due to my opinion. As always, YMMV.
