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[quote=Anonymous]If you co-signed for the credit card (or assumed any responsibility for paying it), then, yes, late payment will affect your credit score.

Cancel the credit card.  If the child needs or wants one, then he can apply for one himself, with all of the credit-score consequences that come with it (both good and bad).  Stop paying for frivolous and/or unnecessary expenses.  Your child needs to either learn to spend less or earn/save more.  A one-time bailout might have been acceptable as long as you made it clear that it was for that one time only (and, if not, you should have).

I would also suggest a gift of a basic book about personal finance, with some discussion of credit cards, credit scores, interest rates, and the like.  Be sure to let your child know that you are available to answer questions about personal finance issues in a non-judgmental way.

The most loving thing that you can do right now is to teach your child these lessons now, while the consequences of failure are small.  Once out of college, it will be much harder to get credit of any type without a good credit score and history.[/quote]

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