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

[Anonymous]

Anonymous wrote:

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......

No reason to take him off. The thing that's helping his credit is that length of credit history makes up 15-20% of your credit score. It's why you should never cancel your oldest credit card. The age of your credit is showing up on his report.

[Anonymous]

Anonymous wrote:My 14yo and 17yo have been authorized users on our credit card for a couple years now.

This is the correct answer. There is no legal rule on how young authorized users can be but certain credit card issuers will impose a minimum age requirement (many have no age requirement). The more important consideration is whether the credit card issuer report authorized user activity for minors to credit agencies. Some will not report that until they turn 18. That would useless for you if want to help build credit history. You need to call to ask or read the terms of service doc.

[Anonymous]

I added DC to my credit card less than a year ago and have been charging on average $500/month to that card. DC (18) just applied and got approved for a cc on their own with a $1500 credit limit.

[Anonymous]

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?

They should just get their own starter card when they turn 18.

[Anonymous]

Get a card for the kid but keep the info secret to yourself, and use it for some purchases.

But the risk of buildit credit for your kid is that it makes them "creditworthy" before they've shown they can be responsible with it, which defeats the purpose.

[Anonymous]

Anonymous wrote:Get a card for the kid but keep the info secret to yourself, and use it for some purchases.

But the risk of buildit credit for your kid is that it makes them "creditworthy" before they've shown they can be responsible with it, which defeats the purpose.

Am I understanding you? You’re saying parents should get a credit card in their kid’s name without telling their kid, use it to buy things occasionally and pay it off - without telling their kid - to build credit for the kid? That’s sketchy at best if your kid is a minor and fraud if they are 18.

Just add them to your card or get them a card (with their knowledge and participation, that THEY use!) and monitor it, helping them learn how to use it and pay it off responsibly. Secretly getting a card doesn’t teach them anything.

[Anonymous]

I am a 19 year old and have been an authorized user on my parents' card for about a year. I use it for emergency expenses, like an Uber out of a shady area I didn't expect public transit to take me to, and otherwise use the money from my internships and student jobs for personal expenses. It's a pretty good deal altogether.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Get a card for the kid but keep the info secret to yourself, and use it for some purchases.

But the risk of buildit credit for your kid is that it makes them "creditworthy" before they've shown they can be responsible with it, which defeats the purpose.

Am I understanding you? You’re saying parents should get a credit card in their kid’s name without telling their kid, use it to buy things occasionally and pay it off - without telling their kid - to build credit for the kid? That’s sketchy at best if your kid is a minor and fraud if they are 18.

Just add them to your card or get them a card (with their knowledge and participation, that THEY use!) and monitor it, helping them learn how to use it and pay it off responsibly. Secretly getting a card doesn’t teach them anything.

My parents took out a card for me when I was 13 and charged 1 item a year and paid it off immediately. They gave me the card when I turn 18. By then, it had a limit totally disproportionate to my non-income and I had 5 years of great credit history. We're doing the same for our kids.

[Anonymous]

Anonymous wrote:

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.

A user of joints? That’s just about everyone these days!

[Anonymous]

Anonymous wrote:

Anonymous wrote:Get a card for the kid but keep the info secret to yourself, and use it for some purchases.

But the risk of buildit credit for your kid is that it makes them "creditworthy" before they've shown they can be responsible with it, which defeats the purpose.

Am I understanding you? You’re saying parents should get a credit card in their kid’s name without telling their kid, use it to buy things occasionally and pay it off - without telling their kid - to build credit for the kid? That’s sketchy at best if your kid is a minor and fraud if they are 18.

Just add them to your card or get them a card (with their knowledge and participation, that THEY use!) and monitor it, helping them learn how to use it and pay it off responsibly. Secretly getting a card doesn’t teach them anything.

DP. I think PP meant to say "add your DC to your card as an authorized user, don't tell them, use it as needed to build their credit history". That's what we did. for about a year until kid turned 18 and applied for a card on their own and got approved. He can improve or destroy his credit now without affecting mine. Does he "deserve" that credit history? About as much as y'all's kids deserve their mommy-and-daddy's money curated college admission to a 'top school'.

[Anonymous]

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?

Their own. Being an authorized user on yours won’t help at all.

[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?

Their own. Being an authorized user on yours won’t help at all.

Yes it will. My now 21 and 19 year olds are authorized users on our accounts and have been for years. They don't have cards of their own yet. They have credit scores in the high 700s because of it. My 14 year old also is an auth user but he doesn't use his card yet.

[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.

No, my card told us this does start to establish a credit rating for your kid.

I did it. At least you are making sure the bills are paid in full, on time. Plus all adults need a card for emergencies.

[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?

Their own. Being an authorized user on yours won’t help at all.

Please don’t guess when you don’t know.
It is arrogant and irresponsible (on a public forum).

[Anonymous]

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?

It helps but give one with smaller limit and not one you use to pay auto payments so if they lose it, its not a headache. Do turn on notifications for transactions, it gives you an insight on their life choices. Don't intervene unless there is a big red flag.