#MoneyMonday: Showing your college kid how to maximize their credit score

KANSAS CITY, Mo. - Parents, your kid is off to college and you want the best for them, especially when it comes to their finances. We show you how they can manage their credit card debt in #MoneyMonday.

We spoke with local financial advisor Jacob Cummings who believes there is a way to use credit cards and stay out of debt.

1. Pay each bill within 30 days of your due date: This is 35 percent of your score. You lose more points for recent and older negative payment history.

2. Keep utilization rate down: This is 30 percent of your score. You may earn points by keeping your spending below the 30 percent mark on your revolving credit card. If you use more than 30 percent, your score may go down. If you see this happening, contact your credit card company and ask if your limit can be raised. 

3. Don't close old accounts: This is 15 percent of your score. Your older accounts may actually improve your credit score. If you close it, that could drop your score considerably. But you have to use the card every six months.

4. Types of credit: This is 10 percent of your score. There is revolving credit and installing loans. Make sure these are in great shape. Exercise them and make sure they are in good standing.

5. Review your credit card score often: According to Todd Ballenger, founder of the National Institute of Financial Education, 80% of your credit reports have errors on them. In turn, this could be messing up your score big time. Always monitor your report and remember, there are various sites that give you a free report each year. Cummings recommends Credit Karma .

On the other hand, well-known financial guru Dave Ramsey goes even further. He believes people can live without a credit card or even a credit score. He said simply people can "dump debt, save money and pay cash."

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