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

[Anonymous]

Sure but don’t give him the physical card.

[Anonymous]

My anecdote

I am "only" an AU on my DH's cards, and the mortgages we currently have are all in his name, and our cars are all cash. My TransUnion Credit Score is Excellent and has increased over the past 2-3 years even though I don't have any primary accounts in my name.

[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.

It depends upon each Credit card. Some include the authorized users when they "report credit scores" others do not. So investigate and find one that does.

We opened a new credit card when our oldest hit 16/started driving. I'm on it and they are an authorized user. I then added the next kid when they turned 16. This way it has a lower credit limit than my normal cards, and if it's lost/misplaced I'm not cancelling the cards I use all the time.

[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.

This is one of the reasons the CC the kids were on as "authorized users" with me was a new card specifically for that purpose. I don't charge to it, only the kids use it. And I pay it off frequently so there is never more than 25% usage shown

[Anonymous]

If anything, having some level of control over their first card will help them develop good spending habits.

[Anonymous]

I replied before. I just looked up my 18 yr old son's credit report. He is 18 and a half and I added him as an AU on my card when he was 17. His score is 781. He has "excellent" in all of the areas (payment history, credit usage, etc) except total accounts. He is only an AU on one of my cards. What's interesting is under "credit age", it is listed as 11 yrs. That's how long I've had this card. So his credit is reflected in how long I'VE had this card, not how long he's been an adult. He's gotten quite a few credit card offers via email and in the mail already. He'll eventually get his own with a low limit and start using it himself.

[Anonymous]

Anonymous wrote:Sure but don’t give him the physical card.

This is what we've done at my 20 year-old's request. He's an authorized user on our account, but he didn't want to have the card in his possession. Too much temptation he said, lol.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I posted on a different thread. I added my son as an authorized user on my card when he was 16 or 17. He’s 18 now with a credit score just under 800. The only ding on his score is the length of credit history. My older son got the best rate available for a car loan when he was 21 or so.

This - our bank told us as a joint person on our card, he gets credit for all the usage and on-time paid bills

We did this as well. But now that he's going to college, should we take him off? His credit score is 730.

He got his own card too recently, but the credit limit is only $1500......

[Anonymous]

SAH mom here and being an authorized user meant that credit card companies won’t take my call about the account. Also didn’t help much with getting my own cards.

A joint account may be different.

[Anonymous]

Anonymous wrote:My anecdote

I am "only" an AU on my DH's cards, and the mortgages we currently have are all in his name, and our cars are all cash. My TransUnion Credit Score is Excellent and has increased over the past 2-3 years even though I don't have any primary accounts in my name.

Please be aware that this could be a problem for you if he dies first. You may not have access to the accounts from death until after probate. You need to be a primary holder on at least one account with sufficient cash to live on for a year.

[Anonymous]

My daughter applied and was approved for her own credit card on her 18th birthday. I’d try that first.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My anecdote

I am "only" an AU on my DH's cards, and the mortgages we currently have are all in his name, and our cars are all cash. My TransUnion Credit Score is Excellent and has increased over the past 2-3 years even though I don't have any primary accounts in my name.

Please be aware that this could be a problem for you if he dies first. You may not have access to the accounts from death until after probate. You need to be a primary holder on at least one account with sufficient cash to live on for a year.

+100 when my dad died last year, mom lost the use of the main card they used because dad was the account holder. Fortunately, she did have a card in her name that she could switch to. Spouses really need to have their own cards, even if you only use one actively.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:My anecdote

I am "only" an AU on my DH's cards, and the mortgages we currently have are all in his name, and our cars are all cash. My TransUnion Credit Score is Excellent and has increased over the past 2-3 years even though I don't have any primary accounts in my name.

Please be aware that this could be a problem for you if he dies first. You may not have access to the accounts from death until after probate. You need to be a primary holder on at least one account with sufficient cash to live on for a year.

+100 when my dad died last year, mom lost the use of the main card they used because dad was the account holder. Fortunately, she did have a card in her name that she could switch to. Spouses really need to have their own cards, even if you only use one actively.

This was first I read. Get name on mortgage too as one less thing to do when grieving.

[Anonymous]

Our freshman is an authorized user on our card and it was helpful when she needed to buy things that we would pay for - football tickets, a ticket home, etc. She just used the card.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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.

Someone had to have co-signed for you to get you started. It's easier to do when your kid is at home, or still under your guidance. I grew up afraid of debt. All cars were paid for with cash (so low budget end of their life vehicles) A friend of mine got me started on a small credit card when I was 22, just to build up credit. My sister had a credit score of ZERO at age 30, where I had to cosign an auto loan for her, and then encourage her to refinance under her name only a year later. These are life lessons that need to be taught, so you might as well start the conversations and process when they are at home.

You do not need to co-sign an 18yo’s credit card when that adult has a job.

Your anecdotes do not sway me in the least. Did I say have no credit till age 30? No, I did not. My once-18yo got a card and charges everything to it and pays it off every month. Has for 2 years, but I don’t know their credit score because it’s not my concern. I give DC a lump sum for college, so it encourages budgeting and planning. I do not pay rent or groceries or utilities directly.

Thus, I do not believe in infantilizing 20 year olds. I also don’t need to put a 13yo on my credit card because my kids had debit cards they learned to manage at that age. Doing everything for your kids means they don’t learn it themselves.

This is just cutting off your kid's nose to spite your face (or something like that). I also gave my kid a lump sum for college and he's doing great managing his money, including paying off his share of the credit card that is in his name and linked to mine. He has a high 700s credit score, because it shows the 30 year history of the card as his. There is no other functional difference between this and him having a different card in his own name, other than the fact that he gets a higher credit score.

When I graduated from law school and started a high-paying job in BigLaw, I couldn't get credit to buy furniture because I had so little credit history. It was stupid, but that wouldn't have been the case if my parents had just put me on as an authorized user on their card.