Adding 18 year old as authorized user on credit card - yay or nay- for building their credit score

[Anonymous]

Anonymous wrote:It helps but their own account will help more. We did both with DD who turned 18 in August.

+1. Adding the kid as a joint user (not an authorized user) when he or she turns 18 is much more helpful for building credit.

[Anonymous]

Uh no. Kid gets their own credit card.

[Anonymous]

Anonymous wrote:Uh no. Kid gets their own credit card.

Well, I added my 21 year old to our card 3 years ago. His credit score is now 800. How does that happen if he is not benefitting from our credit history? He has no other credit history.

[Anonymous]

I'll have to look into it. I added my son when he was 16. He's been used it through high school and college and he just graduated from college. He doesn't have any credit cards of his own yet and uses a debit card for his personal charges. I'll report back on whether it made any impact on his credit.

[Anonymous]

We chatted with 2 different companies and neither one said they would report to the bureaus if we added our 16 year old. I don't know if it changes when they are 18. Your best bet is to talk to your institution.

[Anonymous]

If you have some pull with your bank, they will waive the underwriting criteria and issue a card to your college kid in their name only, with a very low credit limit. I think one of my kids has a $2000 limit and one is $4000.

[Anonymous]

Their own card. Just get him the Discover college one. My DCs credit is like 740 after one year.

[Anonymous]

Anonymous wrote:I'll have to look into it. I added my son when he was 16. He's been used it through high school and college and he just graduated from college. He doesn't have any credit cards of his own yet and uses a debit card for his personal charges. I'll report back on whether it made any impact on his credit.

PP here. OK, I just ran a credit check on my son who has been an authorized user on my card since he was 16 (22 now). He has a credit rating of 756 and it shows a total debt of $11K (which is our current AMEX balance). I guess he does have credit!! This was not what I expected to find.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'll have to look into it. I added my son when he was 16. He's been used it through high school and college and he just graduated from college. He doesn't have any credit cards of his own yet and uses a debit card for his personal charges. I'll report back on whether it made any impact on his credit.

PP here. OK, I just ran a credit check on my son who has been an authorized user on my card since he was 16 (22 now). He has a credit rating of 756 and it shows a total debt of $11K (which is our current AMEX balance). I guess he does have credit!! This was not what I expected to find.

So your debt is reflected on his report? That may not advantageous when he needs a car loan on his own, as his debt to income ratio will be affected by your debt.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Did you Google? According to Experian, "As an authorized user, the credit card account is reflected on your credit report, which can help you make progress toward building a robust credit history."
https://www.experian.com/blogs/ask-experian/what-is-credit-card-authorized-user/#s3

My google has told me the opposite.

Same. Our credit card company states that they don’t report on authorized users.

I'd find a new company. We add kids at 13. By the time they will need credit, they will have a very long history on multiple accounts and a good enough score to get the best rates available.


https://www.nerdwallet.com/article/credit-cards/credit-card-authorized-users-build-credit

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'll have to look into it. I added my son when he was 16. He's been used it through high school and college and he just graduated from college. He doesn't have any credit cards of his own yet and uses a debit card for his personal charges. I'll report back on whether it made any impact on his credit.

PP here. OK, I just ran a credit check on my son who has been an authorized user on my card since he was 16 (22 now). He has a credit rating of 756 and it shows a total debt of $11K (which is our current AMEX balance). I guess he does have credit!! This was not what I expected to find.

So your debt is reflected on his report? That may not advantageous when he needs a car loan on his own, as his debt to income ratio will be affected by your debt.

Percent utilized is probably great though. Being current on payments over a very long period of time and having a low utilization percentage is much better than being debt free

[Anonymous]

Anonymous wrote:

Anonymous wrote:For helping our 18 year old to build a credit score is it better to add them as an authorized user on my cc or have them get their own card?

I am pretty sure adding them to your account will do absolutely nothing to build their credit score. It is still your account, not theirs, and you are responsible for making payments.

This. Your child needs their own card and build up their own payment record.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Uh no. Kid gets their own credit card.

Well, I added my 21 year old to our card 3 years ago. His credit score is now 800. How does that happen if he is not benefitting from our credit history? He has no other credit history.

Same here.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For helping our 18 year old to build a credit score is it better to add them as an authorized user on my cc or have them get their own card?

I am pretty sure adding them to your account will do absolutely nothing to build their credit score. It is still your account, not theirs, and you are responsible for making payments.

You're both wrong.


This. Your child needs their own card and build up their own payment record.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'll have to look into it. I added my son when he was 16. He's been used it through high school and college and he just graduated from college. He doesn't have any credit cards of his own yet and uses a debit card for his personal charges. I'll report back on whether it made any impact on his credit.

PP here. OK, I just ran a credit check on my son who has been an authorized user on my card since he was 16 (22 now). He has a credit rating of 756 and it shows a total debt of $11K (which is our current AMEX balance). I guess he does have credit!! This was not what I expected to find.

So your debt is reflected on his report? That may not advantageous when he needs a car loan on his own, as his debt to income ratio will be affected by your debt.

Exactly. Also, way to infantilize your adult children. DH and I were never on our parents' cards and (gasp!) were able to buy houses and cars, and have always had excellent credit.