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What is Kwedit?
Kwedit is a new, innovative way to purchase digital content and virtual goods safely, easily, and quickly without a credit or debit card. Kwedit is not credit. We are not a lender, we don't charge interest and we are not a financial institution. Our service is for people who don't have a credit or debit card or who prefer to pay with cash for budgeting, privacy or security reasons. Kwedit Promise is not for children. It is a service for adults and teens, 13 and older. Kwedit provides two services: Kwedit Direct and Kwedit Promise. Why Use Kwedit?
Kwedit lets your teen enjoy their favorite online games and activities while taking charge of their money and paying with cash, or by asking someone else to pay on their behalf. Kwedit was created specifically for people who do not have a credit or debit card, or who prefer the privacy, security, and budget management that cash payments provide. Kwedit never charges interest or additional fees. It’s simple, it’s secure, and there are no fees. Kwedit Promise and Kwedit Direct
Kwedit Direct allows your teen to make payments at a local store such as a 7-Eleven, by mailing cash, or by asking a friend or relative to pay on their behalf using a convenient service called Pass the Duck -- the world’s first social payment network. If your teen asks you to pay via Pass the Duck, you can use any of the methods provided by Kwedit Direct, or you can pay with a credit or debit card. Kwedit Promise is an new way for your teen to get goods now in exchange for Promises to pay for them later. When your teen is ready to pay back their Promises, they can use any of the methods provided by Kwedit Direct. Kwedit Promise provides a safe environment for your teen to learn about credit and develop financial literacy. How Kwedit Works
There are two ways for your teen to use Kwedit. Kwedit Direct allows your teen to buy digital content and virtual goods and pay for them by:
Kwedit Promise allows you to purchase virtual goods by making a Promise to pay for them later, typically within 7 to 14 days. This unique capability allows your teen to continue playing without interruption. The amount your teen can Promise in the future may increase as they pay off previous Promises and build up their Kwedit Score (our virtual version of a FICO credit score – the real-world metric that companies use to decide how much people can borrow to buy real things like cars and houses). A Kwedit Score applies only to Kwedit Promise. It doesn't affect your teens’ (or your own) FICO credit score in any way. Monitoring Your Teen's Promises
We believe it's a good idea for parents to monitor their teens' on-line activities. In the same way that parents might ask their teens to "friend" them on social networks such as Facebook, teens can let their parents see their balances via Pass the Duck. Your Teen's Kwedit Score
With Kwedit Promise, the amount of “Kwedit” that a game publisher will let your teen use will be based on your teen’s Kwedit Score. Similar to a FICO score, a Kwedit Score will rise over time as your teen responsibly makes Kwedit Promises and then pays them off on a consistent and timely basis. Initially, your teen will be able to make a Promise for a small amount of Kwedit up to their Kwedit Limit. But, as they prove to be trustworthy by paying back their Promises, their Kwedit Score will rise and publishers may increase their Kwedit limit. The best way for your teen to increase their Kwedit Score is to pay off Promises in full within the time allotted. Partial or late payments will lower the Kwedit Score and make them ineligible to use Kwedit in the future. A Kwedit Score is not like a real-life FICO Score that can hurt your teen’s (or your own) chances of getting a credit card or car loan in the future. But, consider Kwedit a safe environment in which your teen can build the proper discipline, organizational, and commitment skills needed to take care of their finances and credit in the future. How Kwedit Can Help Your Teenager Be More Financially Savvy
Learning how to save, spend, invest, and give wisely are important life tools that help your teenager become more secure, confident, disciplined, and happy. Using Kwedit is a fun way for your teen to start understanding some money basics: 1) save; 2) don’t spend more than they have; and 3) only borrow what they can pay back. Kwedit Promise helps to teach your teen the basic concepts of using credit by allowing them to obtain goods in exchange for a Promise to pay for them later. A Kwedit Score helps them track how well they manage and pay off their Kwedit Promises. Talk to Your Teenager About Money
Learning about money is a skill and educational foundation that helps them succeed in the future. Some findings from the 2007 Teens & Money Survey by Charles Schwab:
Teenagers want you to teach them about money and you are a financial role model to them. Here are easy tips (T.E.E.N.S. Tips) to get started: Talk: Use everyday opportunities to talk about money with your teen. Example: Be a positive role model to your teen by being on top of your own finances. Educate: Share your own experiences with money together with your teen. News: Encourage your teen to read and/or watch the news to see how the news affects their everyday lives. Support: Support your teen to pursue their passions and do what they love. Credit Reports & FICO Scores
A Kwedit Score is not like a real-life FICO Score that can hurt your teen’s chances of getting a credit card or car loan in the future. Consider Kwedit as your teen’s “learning permit” for building the proper discipline, organizational, and commitment skills needed to take care of their finances and credit in the future. In the real world, the ability to get a credit card, car loan or a mortgage is based on two primary factors: credit reports and credit scores. Credit reports are like report cards that list what types of credits and loans consumers have, the length of time their accounts have been opened, and if bills are paid on time. Kwedit Scores do NOT impact credit scores or FICO scores in the real world. Credit Scores are like numerical grades that indicate to potential lenders (such as a bank, car company, landlord, or even an employer) a snapshot of a consumer’s financial history and help them determine if the consumer is a good credit risk. The most widely used credit score is called a FICO score. FICO scores are based solely on information obtained from the three main credit-reporting agencies. A FICO score (which ranges from 300-850) has a direct impact on the amount of credit or loan that is available by a potential lender, as well as how much of an interest rate or any other fees they may charge. FICO scores are determined by five factors: 1) the history of paying accounts on time (35%); 2) the amount of money owed (30%); 3) the length of credit history (15%); 4) any new credit or debt (10%); and 5) the “mix” of credit being used, such as credit cards, retail accounts, installment loans, finance company accounts, and mortgage loans (10%). Race, color, age, religion, national origin, sex, marital status, as well as salary and occupation have no effect on FICO scores. Since a FICO score is determined by the information in credit reports, it is a good idea to review and fix any errors in your credit report at least once a year. Through the Fair Credit Reporting Act, you can request a free copy of your credit report from each of the credit reporting agencies every 12 months by contacting the Annual Credit Report Request Service at:
What is Pass the Duck?
Pass the Duck is a way for Kwedit users to ask a friend or family member to pay for a Kwedit Promise on their behalf. If you received a Pass the Duck request, it's easy to respond by signing into Kwedit (there's no obligation on your part) and indicating what action you'd like to take. You can accept the request and pay on the requestor's behalf, you can decline the request and either notify them or just say no, or, you can skip it. Pass the Duck allows you to monitor what your teens are buying without handing them your credit card. Money Resources For Families & Teenagers
Kwedit Kontract for Parents & Teens The National Foundation for Credit Counseling Annualcreditreport.com MyFico.com
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