Back to School: Co-Signing and Alternatives

It's back to school time.  Among other things, that means a barrage of credit card offers for college students.

New rules make it harder for credit card companies to work with college students.  However, one of the ways your child can get a credit card is by asking you to co-sign on the account.  That means you promise to repay any debts on the account.  If Junior doesn't make the payments, your credit can suffer.

Should you co-sign for a child?  It's one way to help them build credit and enjoy the convenience of credit cards.  It's also risky.  ConsumerMan describes the dilemma and suggests a few alternatives like secured credit cards and student cards.

Further reading:

• How Co-Signing Works
• Problems With Secured Credit Cards