Question

Leena is a senior in high school. She regularly babysits and deposits her earnings into a checking account. She wants to get a credit card before going to college, but she's having trouble getting one. Determine if Leena has a positive credit history, a negative credit history, or no credit history. Explain your answer.
Answer in a 6th graders words

Answer 1

Leena probably has no credit history. This means she hasn’t borrowed money or used a credit card before, so companies don’t know if she can pay money back. Since she’s just in high school and only babysits, she hasn’t had the chance to build a credit history yet. When people have no credit history, it can be hard for them to get a credit card because the banks don’t know if they’re responsible with money.