Answer: About 33%

From Bloomberg:

Why is this important? The credit card is usually the entree in into the credit system for young people to start to establish a credit history for themselves. For the 2/3 of  young people not establishing a credit history with a credit card, they must find alternative means to build credit. This Bloomberg article highlights other ways:

• Student Loans
• Get on someone else’s card (as authorized user)
• Get starter credit card
• Apply for a secured card
• Take out a credit-builder loan
• Document debt payments
• Use microloans

Have your students read the article and select at least two methods they could use to build their credit. Why? You don’t want them turned down for a cell phone, auto loan or apartment because of their lack of experience with the credit system.

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Be sure to check out this NGPF Activity: Should You Get a Credit Card?

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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