Question

So I keep seeing this advice that you should add your kids as an authorized user to your credit card so that when they are 18 they will have a good credit score. Is this accurate? I mean he’s 2, but I gotta know  

Answer 1

I plan to add my daughter to one when she turns 16 in a couple months.  

Answer 2

I did that with my daughter when she left for college, but after graduation, I removed her. She did really well and honestly only used it when her car broke down and needed a tow.  

Answer 3

I think it’s important for many reason. we know that prevention education is the best way to prevent unwanted outcomes with human behavior, so not talking about it or pretending it doesn’t exist probably is not the way to go. My parent never talked about this stuff and when I went to college I got a credit card and had no clue what I was doing. I wish I had some education around money as a kid. I think it smart to start talking about it early. ❤️

Answer 4

This is awful advice. I keep preaching paying cash, saving for future goals. My kids know credit cards don't make life easier.  

Comments

@vaporescence it’s not only credit cards though. You need credit for a mortgage, car, some jobs, etc. it’s about raising their credit when they can’t do it themselves! My dad did this for me (I think he added me when I was a teenager) and I have outstanding credit because of it!  

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@viafore0 I respectfully disagree with this #daveramsey

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@vaporescence haha I wish I could afford a mortgage in cash at 25 but that’s only gonna happen for people who make a lot of money. so I am glad my dad helped me in this sense.  

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@vaporescence having bad credit or no credit can literally limit there career potential. Many jobs run your credit report. I cant imagine limiting my kids like that. Aswell the aspect of saving money on insurance, if they ever needed an apartment renta. Etc. Crazy to me, to limit the future.  

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@grandiose I had to double check what group this is posted in- which is one that doesn't advocate credit card use. I've never heard TBM advocate for putting kids on a credit card, or giving them one as young adults. This post is ridiculous and harmful to helping youth.  

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@vaporescence yea I'm not advocating credit card use. I'm not sure in what way this post is harmful. Unless your a parent with crap credit and adding your kid. Anyone here I would like to think wants to help there kids have a better financial future and even potentially help educate them enough to avoid big financial stumbles. I would never give a kid a credit card lol, adding them is not the same. Helping them navigate getting a secured card and/or adding to yours. teaching them how to use it to there own benefit is where it's at.  

Answer 5

No, lenders are no longer allowed to count those accounts as they are not technically in that person's name. Those days are over. :(

Answer 6

Seems to me if they start out with a 800 FICO, they will have entirely too much credit at their fingertips, plus they won’t appreciate the building of their own credit. We can’t “give” them everything. Some things especially one’s honor and word (credit) has to be earned.  

Answer 7

I’ve been hearing regularly that this no longer affects the credit of the authorized user, unless that user actually applied and enters their SSN etc as well.  

Answer 8

No! I want my kids to be debt free and not look at credit cards

Answer 9

This is the 3rd time I have seen a post about this in like the last 20 minutes of being on Facebook! I would be careful doing this. I know people whose parents have done this and then their parents have died unexpectedly and they are left with their parents debt because of this.  

Answer 10

Wait until they are at least 16 and make sure they understand the rules (you can set their card limit low, or not actually give them the card) and have your own spending under control.  

Answer 11

After reading all the comments, and even though we are extreme responsible with finances and don’t ever foresee getting our kids into trouble, I would still probably just get their own card at 16-18 and let them learn to build good credit. I only got a creditcard at 17 going off to college and I have excellent credit since my parents taught me not paying it fully each cycle is not an option!  

Answer 12

I added my husband as an authorized user to a couple of my credit cards that I had long before we got married. It was a huge boost to his credit score and he doesn't even have or use those credit cards. His name is just on there. so yes, it does help. But I don't think I would ever do it for a child. Not unless I was extremely confident in their financial knowledge and decision-making abilities.  

Answer 13

My parents gave me one when I turned 16 as an emergency and gas card with a $1, 500 limit and the understanding it was literally only for those things. Following that I got myself into some credit card debt (unrelated to my parents card) and having the card attached to their name is the ONLY thing that saved my credit from completely tanking. They still have me on that card 10+ years later that has a much higher limit now. I will say though when I check my credit karma account, I can see the balance of the card (some people might be uncomfortable with this! )

Answer 14

I never added my kids. I figured establishing their own credit was just part of growing up and “adulting” as is said nowadays. They’re in their 20’s and have excellent credit that is 100% their accomplishment! I think as parents we expect our kids to need us for everything. They really don’t if we’ve done a decent job raising them. They do just fine without us

Comments

@wardlaw this

Answer 15

I would get them a secured card and let them build credit when they start working. I think them being educated about budgets, spending and debt is imperative. Teaching them will last a lifetime and if they get overextended you have time to teach financial responsibility. I have 1 child who is very financially savvy even at 5 and would have done great, but others who would not have. I don’t want any debt and I love my children, but taking on debt for them is a big no for me.  

Answer 16

I added my teenagers as an authorized user on my discover card at 15 years old. They have a good credit score and a great credit history since I’ve had that card longer than they have been alive  

Answer 17

I added my almost 22-year-old to a credit card that I don't use with a 3k limit her first year of college. In retrospect, I'm glad I did. She graduates with her undergrad in May, has an over 800 credit score, and a 4% interest rate on the car she bought over the summer. Also, when she went to Australia and Hawaii for work studies, she was able to put expenses on the card and then pay it off with her per-diem without us having to come up with the cash.  

Answer 18

This  

Comments

@tideway591 this is how I always understood a score and don’t understand the concern of the number.  

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Hmm to all the people who have high scores and low to no debt. Thats actually the only way to have a high score is to be using less then 30% of the card. And no thank you, Dave Ramsey might never need to apply to another job. But I might/probably will and when I do, I would not want to be turned down for not having a high score.  

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@tideway591 this is inaccurate! A credit score is a indicator of how responsible you are with paying your Bill's. I have zero debt but yet my credit score is going up pretty rapidly based on the fact that I pay my utility, cell phone, ect. Bill's 9n time every month.  

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@buffalo tell Dave Ramsey that ‍♀️

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@tideway591 soooo inaccurate. I have had 0 debt car paid off for years and sat at 827. I now have only 5k left on my car and sit in the 800 range

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@buffalo cell phones and utilities are not on your credit unless you get dilinquint and they have to send you to collections

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You can't buy a house without a credit score. Unless you pay all cash!  

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Yeah I’ve only seen manual underwriting done through the bank he uses

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@katheykathi this is from Dave Ramsey not me. ‍♀️

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@katheykathi mine are. ‍♀️ always have been too.  

Answer 19

My dad did this for me & now I’m 25, own my home, & have an 801 credit score!  

Answer 20

Just no

Answer 21

This is our plan too! Build my kids up and set them up for a successful future.  

Answer 22

Just worked for my 19yo son. I added him to our account 4 months ago and he already has an 800 credit score. My husband and I both have excellent credit and have always paid our balances in full for years so we’re also hoping by monitoring his expense and showing him the proper way to use a credit card it will be beneficial to him rather than become a debt.  

Answer 23

It doesnt affect additional card holders anymore

Answer 24

My mom added me when I was 18 and I got her entire credit history. ‍♀️

Answer 25

@tideway591 hmmmmm

Answer 26

I waited until my Daughter was 18, applied for a Discover student card only in her name and over the past 3 years her limit has gone from $500 to $3K, her credit score was 0 and now it is 710. She pays her card off each month.  

Answer 27

Let them have a part time jobs when they're older.  

Answer 28

I think it means more when you do the work for a credit score. My parents have awesome credit scores but I built my own credit and it’s over 800. I mean, they co-signed my first auto loan so I could be approved but that’s it.  

Answer 29

You can’t get them a credit card until they’re 16

Comments

At my bank anyways

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@tideway591 Dreissigacker Hooker Amex 13 and up . My son turns 12 next month  

Answer 30

We will be getting our kids cc when they turn 16, with a very small limit and they have to pay it back in full that same month. They don’t pay it they don’t get it, and will be paying us back if we have to pay it. Teach them while helping them.  

Answer 31

I put my son on the card I have had the longest when he was 16. He is now 21. I didnt give him the card so the whole I am teaching him to have debt doesnt make sense to me. I actually have no debt except my house and he knows how I feel about debt. The card was strictly for his credit score. People are posting it doesnt count but it is still showing up on his credit report. Because of that decision he has an 800 plus credit score. Hes a junior in college and just signed a lease for a new apartment for next year. He was the only one of his 3 roommates who didnt need a cosigner because he had good credit. I would consider that a win for both of us. I follow Dave Ramsey too and I agree with a lot of what he says but I differ on this point. I think credit score matters. Not just for getting good interest rates on a mortgage but it is also looked at for jobs.  

Answer 32

My bank did me there wonderful favor of building my credit before I turned 18. I wasn't responsible enough to handle the repercussions of having a credit card with a limit of 1200 at the age of 18. What started out as "for emergencies only" turned into well I need a prom dress, clothes, and whatever else. I wish it never happened. I did have the financial means to pay it, but I didn't. It would have meant more if I had to work harder to earn a better credit score.  

Answer 33

There are a lot of mixed opinions on this subject. I have added my 16 year old to one of my cards. When he goes out with his friends he uses his card. He has a limit and he pays it back by the due date. I hope when he is 18 he will have a decent score. How else will he get approved for a car loan, etc. I remember being denied loans and even rental apartments because I didnt have a credit score. Just make the choice that is right for you

Answer 34

Careful with them 2 year olds  

Comments

@codification80213 when my son was about 5 he ordered over 150 dollars on amazon. I was able to cancel it but now I have a code they send you, that you have to type in everything your going to login. Thanks to little fingers.  

Answer 35

Could you not just create a bank account and deposit monthly and build that relationship to create good standing with a bank

Answer 36

What a great idea!  

Answer 37

I agree with @baten5677 in that everyone just needs to make decisions that are right for their own family. I have four kids, two of which are grown, and have learned that often making something completely taboo and off limits to kids just makes them want to unleash and run wild with it later on. In my opinion, it’s better to walk with your kids and show them how to use something responsibly, rather than forbid it completely. Even if you have perfectly valid reasons. This could apply to social media, cell phones, whatever. Our kids will encounter so many temptations in their adult lives and we need to equip them with the tools to navigate those situations while we still can and teach them how to be responsible while they still have our safety nets. If we let them make little mistakes now, while we are still in a position to help them work through them, they’ll be better off in the long run.  

Answer 38

I would never sign my child up for a credit card. But that’s just me.  

Answer 39

Commenting so I can come back and read later. I’ve been curious about this as well.  

Answer 40

We added our son to one of our cc (at 17) He didn’t use it unless in an emergency but I’ll good paying helped him when he got his car at 21

Answer 41

Nope! Nope nope nope-ity nope! Lol. My dad did me this "favor" and I was able to quickly drown in debt at the ripe old age of 18 by taking out store credit cards, a car loan and I darn near almost bought a mobile home. Would have been better served with being taught how to save and spend wisely. It really is a good thing for an 18 year old to be told "no" when they decide on a whim they wanna buy a 40K truck making $10/hr.  

Answer 42

Ask your child to save for money to go toward a secured card to build a credit history. Some cards take $300

Answer 43

My dad did that when I was a teenager and it totally backfired - I was so irresponsible with it and racked up debt on it!  

Answer 44

U can always put ur kids name on ur card to help them with their credit and not give them an actual card.  

Comments

@sidran yes exactly!  

Answer 45

That's a hard no in this house.