Course on credit helps parents and children

By PHIL MULKINS World Action Line Editor - 10/9/2009


Dear Action Line: Are there any teaching aids or literature for parents of people under 21 who are already being told that their parents must co-sign for their credit cards? My other college kids were never responsible enough for credit cards and we wound up paying them off, but this new Credit CARD Act changes the rules. — L.N., Tulsa.

On Feb. 22, the Credit CARD Act of 2009 will change the "age of majority" rule from 18 to 21 for credit card contracts. That is probably a good thing, although it won't really change anything. Parents who used to routinely pay off their kids' balances will still do so but will have to co-sign on the cards before they can be issued.

An online course titled "Credit when credit is due" is a new credit card certification program for young people facing new credit card restrictions. It is available through the Institute of Consumer Financial Education, a San Diego-based nonprofit organization that offers financial education to consumers of all ages.

The course is widely acclaimed and recognized by credit counselors, lenders and the credit reporting agencies. Its 12-lesson program targets first-time credit seekers and their parents, and there's a test at the end of each chapter. Parents being asked to co-sign for the children's credit cards find it a big help, and successful students can send their certification paper to the credit reporting agencies and potential lenders as proof of "credit smarts."

Nationally, 72,500 people have completed the course and 400,000 course textbooks have been distributed. Graduates are entitled to a number of benefits for investing in such comprehensive credit education, including the fact that their credit scores are increased.

Many credit and debt counseling organizations require their clients to take it as part of their credit rehabilitation clinics. Your can enroll in the $40 online course at tulsaworld.com/ICFEcreditdue.

Here is the curriculum for the course:

"The facts of life: What you need to know to get along as a financially responsible adult"

"Living on the edge: How to budget and save your money, and plug your spending leaks"

"To borrow or not to borrow: How to decide if you should pay cash or borrow the money you need"

"So you have decided to borrow some money: How to get through the credit granting process once you decide to borrow"

"The terms of the deal: How to determine if you are getting the deal you have bargained for"

"Auto loans and leases: One of the toughest deals to negotiate"

"Home sweet home: The largest debt you are likely to ever have"

"Credit cards and other loans: What you need to know about credit cards, personal signature loans, etc."

"You've got trouble when: How to tell you when you may have a problem"

"When you fall behind: Dealing with delinquency and bill collectors"

"Bankruptcy: The ultimate credit overload"

"Building and rebuilding your credit: How to establish good credit when you have no credit history or even a bad credit past"



Submit Action Line questions by calling 699-8888 or by e-mailing phil.mulkins@TulsaWorld.com or by mailing it to Tulsa World Action Line, PO Box 1770, Tulsa OK 74102-1770.




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