High school seniors have lots to worry about - deciding which college to attend, balancing after-school jobs - and, now, establishing good credit scores. According to a study by Jumpstart Coalition for Personal Financial Literacy, about one in three high school seniors has a credit card. "But all too often, teens do not know how to use credit properly," says Andy Johnston, a financial center manager at Fifth Third Bank.

Johnston says it's important for parents to help their teens build a good financial reputation. "Establishing a credit history is important when seeking loans or mortgages. We usually like to see two years of established credit," he says. Credit scores may also be checked when people apply for jobs or rent apartments.

Tips for building good credit
When parents know how to use credit wisely, they're better able to advise their kids. Here are a few helpful tips.

Stay below your credit limit. Johnston recommends staying at least 70 percent below the available credit limit on every card. "Having cards maxed out negatively affects credit scores and makes it more difficult to get out of debt," he explains. To prevent this, he offers two pieces of advice: "Stick to budget, and before each purchase, ask yourself whether it's a need or a want."

He also recommends starting with low limits on credit cards. That way, it's easier to avoid taking on too much debt. Parents and teens should determine what that limit is. To avoid exceeding it, he encourages teens to review their statements online or check them periodically with automated phone systems. Bankers can show teens how to do this when they apply for their cards.

Establish a consistent payment history. "This is crucial," Johnston says. "I encourage everyone to pay off their balance in full every month to avoid paying interest on outstanding balances. If that's not possible, pay as much as you can afford, preferably more than the minimum amount."

Be selective in accepting credit card offers. Teens and college students often receive many credit card offers in the mail. Also, many stores offer incentives on initial purchases when people open store credit cards. "Having too much credit available can negatively impact a credit score," Johnston says. "Plus, interest on store credit cards is usually higher than it is on bank credit cards."

Avoid costly fees. Many banks no longer charge annual fees for credit cards. However, teens can still be charged hefty fees when they exceed credit limits or pay bills late. Often these fees can be $30 or more.

Tips for effective communication
"Be honest about the mistakes you've made in the past. It keeps the lines of communication open," Johnston adds. "When children understand their parents' history, they're more comfortable asking for help if and when they do make mistakes."

Teens who open a credit card under age 18 need a parent or other adult to co-sign for them. However, teens may obtain credit without co-signers if they have another bank account that can be used as collateral. Talk to a financial center manager to learn the details.

For more information on building good credit scores, contact Fifth Third at (866) 475-4201 or visit the Fifth Third website.