Making Teen an Authorized User on CC

Discussion in 'Budget Board' started by NYCDiane, Jan 27, 2012.

  1. NYCDiane

    NYCDiane DIS Veteran

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    I've been thinking about letting my DD be an authorized user on 3 of my credit cards (all very low balance cards). The reason I want to do this is because down the road (in August) when she wants to go shopping for school clothes (entering HS) with her friends, I don't want to be tagging along. I also don't want to give her cash that she could lose (or not get correct change).

    My thought was to get her her own card, let her use it (tell her there's only $100 on each card), and then take them back and put it away until the next time she needs new things.

    Has anyone else done this? Any opinions on this?
     
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  3. englishteacha

    englishteacha <font color=magenta>I've just gotten crazier over

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    Personally, I wouldn't. Perhaps a prepaid card would be a better option.
     
  4. elgerber

    elgerber <font color=deeppink>Sometimes you gotta bite the

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    I have both of my kids as users on one of my Disney Visas. My kids are very trustworthy and have never charged anything they shouldn't have. I did it so if I sent my son to the store for milk or something, or if they went somewhere with friends i was paying for, I didn't have to have cash handy or worry about it falling out of their pockets or something. Its worked fine, and never been a problem in any way.
     
  5. Marionnette

    Marionnette Children see magic because they look for it

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    I added each of my kids to one card. Each of them is on a different card so that I can tell who is charging what. No chance of blaming one of the other kids for using the card inappropriately. But the cards are under my name and they have the full credit limit on them. And they didn't get access to those cards until they were driving. They weren't young teens.

    My only question would be, if you cannot trust that your daughter is capable of ensuring that she receives the correct change from a purchase, how can you expect her to keep track of her spending limit? Especially when the limit is as low as $100. If you only want to do this for back to school shopping and that's it, then maybe a Visa gift card would be a better idea.
     
  6. MickeyManiac

    MickeyManiac Mouseketeer

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    If your child is trustworthy I see no problem with it. The first time my DS needed gas and DH and I weren't in the area I decided to add him to my Disney Visa. He was given some basic rules and told any unauthorized (by me) charges would result in me removing him from the card. Easy come...easy go! ;) But we have not had a problem and I get the reward points.
     
  7. cornflake

    cornflake DIS Veteran

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    I don't get the three cards and lying about the limit thing.

    I mean first, she'd really believe that your credit cards have $100 limit? Why would she believe that? Why would anyone believe that?

    Second, so you're charging her with like, thinking about if she finds a $101 coat, she can't actually get it, or she's got to add stuff up to make sure she doesn't go over by a penny, keep track of tax, etc.?

    Third, as above, if you can't trust her to that extent or to the extent that she'd give you back your change, maybe this isn't the best idea at all - are you sure she'd even buy clothes?
     
  8. NYCDiane

    NYCDiane DIS Veteran

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    I never said I don't trust her. I trust her completely. I also never said I was worried about her not giving me the change -- what I said was that I was worried about her getting the correct change at the store since not all store clerks are trustworthy, especially when they see younger teens come in unsupervised.

    The three cards are for three different stores.

    About her believing the credit limit --- doesn't matter. If I tell her you can only charge $100 per card, that's what she would do. I'm sure if she found "THE" coat and it was $101, she would call me and ask if she could get it.

    I don't get your last comment " are you sure she'd even buy clothes" What does THAT mean???

    I don't see any constructive input from you on this topic at all. I'm wondering why you even bothered posting???
     
  9. NYCDiane

    NYCDiane DIS Veteran

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    Thank you for all the great replies and advice.

    I thought about a prepaid, but I'm thinking if I give her 1 card with a $300 limit, she might spend it all in one store. My thought was $100 at each store this way she'll be able to get a variety of styles.

    I still have a few months to think about it. :)

    Thanks again!!!!!!!
     
  10. cornflake

    cornflake DIS Veteran

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    I'm not the only one who read not get correct change as you not getting it back from her.

    The are you sure was because it seemed like you were setting up multiple stopgaps instead of just getting her one of your ccs and handing it to her and telling her what she was allowed to spend. One assumes - and again, I'm not the only one - you had some reason to feel you needed that many controls over it. Like, maybe she's not ready to be allowed to shop on her own if this much is a concern that you'd need this many controls.

    I posted because.. .you asked!

    I was given a cc before I started h.s. too, to keep (unless I ran up unauthorized charges and didn't pay for them), so I could shop by myself and if I needed money and etc. It was just... 'here's a card. If I don't tell you you can buy x, y, or z, you'd better have cash in hand when the bill comes or you'll never see that card again.'
     
  11. LJSquishy

    LJSquishy DIS Veteran

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    Your daughter is obviously fairly responsible and trustworthy or else you wouldn't even be considering adding her to any of your credit card accounts. When I was younger I was very responsible and would never charge anything to my parents account without their consent.

    I do think using a credit card is safer for you both than giving her cash. I wouldn't worry so much about the cashier giving back the correct amount of change, but I would worry about her accidentally losing or dropping the cash, especially since she will be out having fun with her friends. It is much easier for her to keep track of one card.

    I probably wouldn't add her to all three of your accounts, as having her carry around three cards is a bit confusing and she may forget which ones she has already used (you mentioned telling her she could spend $100 on each card). If she is responsible enough to go shopping on her own and use your card to pay for her clothing, then she is responsible enough to figure out how to ration her $300 total limit throughout various stores.

    I think it is great that you have a daughter who you can trust, and she is mighty lucky to have you as a parent who will give her the freedom and ability to make her own responsible choices. :)
     
  12. Tink-aholic

    Tink-aholic DIS Veteran

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    My 16 yo son is on my card that technically has no limit. He runs errands for me now that he wouldn't have been able to before, like pick up prescriptions, groceries, fill up the tank, etc.

    If you would let your kid drive your car (worth thousands), why would you only let them use a prepaid card?

    The best part is my son's ss# is also attached to this card, so that he will have several years of perfect credit by the time he leaves high school. ;)
     
  13. NYCDiane

    NYCDiane DIS Veteran

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    No, actually you're the only one who said that. The one other person who mentioned it said that if I'm worried about her getting the correct change from a cashier....... NOT that I said I was worried about her not giving me the correct change.

    I subsequently explained: three stores, three cards.


    I asked for advice/opinions, not for someone to completely misunderstand my post and then make some asinine accusation against my daughter:
     
  14. NYCDiane

    NYCDiane DIS Veteran

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    Thank you for your great post! :)
     
  15. BridgetBordeaux

    BridgetBordeaux DIS Veteran

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    As Tink-aholic said, your child will also start to develop a credit file and that will be very helpful when they apply for their first card on their own. We have a USAA cc and they encouraged us put DD on the acount as an authorized user. Between that, and our DD's teen checking account, she should be in good shape credit wise when she goes out on her own in life (from a credit standpoint).
     
  16. Green Tea

    Green Tea <font color=green>I don't do hatchets<br><font col

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    I just gave my DD my card to shop with. She was never not able to use it.
     
  17. Green Tea

    Green Tea <font color=green>I don't do hatchets<br><font col

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    Everyone here says this, but my child had their own checking account for 7 years and had a card in their name for 4 years as an authorized user on my card and when they graduated there was still an empty credit file. Maybe different banks report different things to the agencies. I'm not sure.
     
  18. sunshinehighway

    sunshinehighway DIS Veteran

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    American Express has a pretty good prepaid card. There's no monthly fees and no reload fees. You can even sign up for a card for her so its in her name but you control it. It also comes with the protections Amex gives real credit cards.

    From what others have said, it sounds like putting her on your card may not do anything for establishing her credit.

    Maybe a prepaid card is a good way to test the waters. You'll see how she does with a card. Once she shows you how she handles it, you can put her on your accounts.
     
  19. PlutoPony

    PlutoPony DIS Veteran

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    We added our son to one of our CC's after he got his driver's license, so he has a card with his name on it. He knows we check the bill carefully each month and understands that unauthorized spending will be caught and there will be consequences. Hopefully by the time he goes to college in a few years he'll have a decent understanding of how much things really cost and how much they add up. My biggest concern with him having a CC is the kid making sure it doesn't get lost or stolen and used by an unauthorized user. Since he doesn't actually use it very often we're trying to get him in the habit of checking regularly to make sure it's still in his wallet, not simply out of sight out of mind kwim?
     
  20. prncess674

    prncess674 DIS Veteran

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    I would just give her one or two cards. The $100 on each sounds strange. Also is $300 her summer clothing budget? I would not trust a 13 year old to pick out a complete useful wardrobe. I would maybe give her $100 so she could buy something that she absolutely loves, but then I would go back with her later to try on all the things she liked while window shopping with friends. I also think most young teens would see $300 as a "spend to" amount rather than a budget. Would she try to spend every last penny.
     
  21. phred52

    phred52 I love vacation!

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    What we did is just a bit different. When our dd's were young teens, I opened a new disney visa credit card in MY name with dd's name also on as an authorized user. Then when the cards came in the mail we sat at dinner and had a family discussion about it all, the responsibility .... yackity yack yack. then I CUT UP the card with MY name on it and gave the other card to dd. Showing her that absolutely everything that was charged to that card was her responsibility. Did this for both dd's two years apart.

    If I wanted dd to buy me something and she used "her" credit card, I paid her in cash and she kept track of it all.

    Do you know, never once was there an issue. NEVER! Now, both dd's are out on their own, those original credit cards are long gone and they are using their own disney visa's. :goodvibes
     

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