Adding your teen as authorized user to credit card?

[JanaDee]

That's impossible. You and your son have totally different credit histories.

I made DD19 an authorized user on a Target Card and American Eagle years ago. Both low limits and no balances. Last year she went to buy her own car and her FICO score was 751 thanks to having a long history, usage, no balances, etc.

I know he won't have our credit score. Our credit is excellent, and I want him to have the benefit of starting off with credit that shows the bills are paid on time and there isn't a balance.

 

[NHdisneylover]

We added each of out kids when they were 14. They each travel often without us, so we wanted them to have a card in case of emergency. DD has used his a few times--most recently when her flight back from the US was cancelled due to a pilots strike so when she got home she needed to buy a new train ticket to get from the airport to the house (DH and I were travelling and could not pick her up).

DS has only used his twice, both when it was new and we were at WDW together--I just wanted to make sure it was working properly. But, I feel better knowing he has it just in case.

Neither kid is the type to define "want a new jacket" as an emergency, so I am not concerned about them. luckily. If they end up with a decent credit score to start out as a bonus, even better.

 

[AnAmericanInDisney]

If your kid misuses the card and you have to remove him/her, does that negatively affect their score?

 

[PlutoPony]

DS has had his own bank account for a couple years. DH is also listed on the account because DS was a minor when it was opened.

My son had a minor account as well. When he turned 18 the bank essentially made him close that account as he was no longer eligible for it. YMMV

 

[HulaHoopy]

My husband's father added my husband to his card when he was in college. Apparently he never removed him, as the current debt on the card is showing up on my husband's credit report.

Unfortunately, I am the only one who sees this as an issue worth addressing.

Just thought I would mention this as one possible negative.

 

[tvguy]

Is he a student? I just got my kids a college account at the bank. Free checking, a savings account and a basic credit card with a low credit limit, something like $1,500. The student is entirely responsible, and it is set up as a way for students to establish credit.

Does anyone know, does an authorized user on someone else's account get to use that for their own credit history?

 

[cleverclovers]

Put my daughter on my VISA as an authorized user when she was in college. She knew what she was allowed to do with it. Never had a problem. She's still on the card, but uses it to pick up things for me.

 

[LisaR]

You might want to check out the card you have. I know some cards report authorized users and some don't.
If you google that specific card and if they report authorized users you should be able to find out if it will help his credit.

This is what I was told, as well.

Our DD has been an authorized user on our credit cards since she was 16. We didn't do it for credit history reasons and I didn't think it would have any bearing given that she is only an authorized user.

She is 19 now and while still an authorized user on ours, she does have her own through her bank, but she has never actually used it. She uses our card when it is something we are willing to pay for and she prefers cash or her debit card for things she is paying for.

 

[christineann]

I made my children authorized users on my credit card when they went off to college in case of emergency (like a car repair). Neither one ever used it. They got their own credit cards when they graduated and started their careers, so their names were removed from mine.

I am an authorized signature on my mother's credit card and am on her checking account in case of emergency. I don't carry the card or the checkbook but know where it is at her house if needed. She is 86.

I guess I'm "in the middle" and officially middle aged

 

[barkley]

Is he a student? I just got my kids a college account at the bank. Free checking, a savings account and a basic credit card with a low credit limit, something like $1,500. The student is entirely responsible, and it is set up as a way for students to establish credit.

Does anyone know, does an authorized user on someone else's account get to use that for their own credit history?

depends on the credit card company. American Express used to (not sure if they still do) b/c they extended an insane amount of credit to a deadbeat in the family based on the credit history he acquired as an authorized user (with a very low purchase limit) on another family member's account. that's several tens of thousands am ex will never see.

our credit union does not report for authorized users (has to be a co-signer/owner of the card).

 

[Happy Snowman]

Is he a student? I just got my kids a college account at the bank. Free checking, a savings account and a basic credit card with a low credit limit, something like $1,500. The student is entirely responsible, and it is set up as a way for students to establish credit.

Does anyone know, does an authorized user on someone else's account get to use that for their own credit history?

That is what our kids have as well. The "authorized user" isn't as effective at building credit as having their own card. The kids would put gas and food on the card and pay it off each month. Having installment credit is also a very, very good idea, especially when it comes to buying their first car (aka student loan).

 

[MickeySP]

My husband's father added my husband to his card when he was in college. Apparently he never removed him, as the current debt on the card is showing up on my husband's credit report.

Unfortunately, I am the only one who sees this as an issue worth addressing.

Just thought I would mention this as one possible negative.

I did it for my DS but only for enough time to build his credit 1-2 years. I then was removed, he was on his own.

Be very careful to monitor it online & any sign of trouble shut it down. My SO did this for his son and the had a blow out over some family trouble. His son stopped paying the card but SO ddin't know since bills/phone were in son's name. SO got stuck with the card since he was the main party. It cost him over $6000, and dented his almost 800 FICO score. It has taken almost 2 years to get it to start to recover.


And no he never thought this could happen in a million years, life is funny sometimes.

 

[Disneybuckeye]

It surprises me that adding someone as an authorized user automatically gives them your credit history. That being said, we gave all our kids a card at 16 that were authorized cards on our account. They used it for gas all the way through college, text books, and to buy things that we said we would pay for. Occasionally they would use it for something they were buying and then pay us back. They never abused it. It was also an account DH and I hardly ever use so it was easy to track who bought what. The best was when one of them lost a card and the other two could not use theirs until they received new cards. You would have thought we were withholding food and water.

They each obtained their own cards their junior year of college. I have nothing to do with those cards. DS just bought as new car and his credit score was over 800. I believe teaching them how to use credit effectively (earning points, not paying fees, only buy what you can afford) is an important lesson to learn at an early age.

 

[JanaDee]

It surprises me that adding someone as an authorized user automatically gives them your credit history. That being said, we gave all our kids a card at 16 that were authorized cards on our account. They used it for gas all the way through college, text books, and to buy things that we said we would pay for. Occasionally they would use it for something they were buying and then pay us back. They never abused it. It was also an account DH and I hardly ever use so it was easy to track who bought what. The best was when one of them lost a card and the other two could not use theirs until they received new cards. You would have thought we were withholding food and water. They each obtained their own cards their junior year of college. I have nothing to do with those cards. DS just bought as new car and his credit score was over 800. I believe teaching them how to use credit effectively (earning points, not paying fees, only buy what you can afford) is an important lesson to learn at an early age.

It doesn't give him my credit history. It will give him a start at building his own credit history, by showing the bill is paid on time and no rolling balance.

 

[sunshinehighway]

It surprises me that adding someone as an authorized user automatically gives them your credit history. That being said, we gave all our kids a card at 16 that were authorized cards on our account. They used it for gas all the way through college, text books, and to buy things that we said we would pay for. Occasionally they would use it for something they were buying and then pay us back. They never abused it. It was also an account DH and I hardly ever use so it was easy to track who bought what. The best was when one of them lost a card and the other two could not use theirs until they received new cards. You would have thought we were withholding food and water.

They each obtained their own cards their junior year of college. I have nothing to do with those cards. DS just bought as new car and his credit score was over 800. I believe teaching them how to use credit effectively (earning points, not paying fees, only buy what you can afford) is an important lesson to learn at an early age.

It doesn't automatically give someone the card holder's credit history.
If the card reports to their credit report it can add a positive history to their credit. Some cards (like American express) will also back date any future cards in their name to the year they were added as an authorized user, which can further help credit history by increasing their average age of accounts.
Also some banks weigh an established relations with them more than others so being an authorized user can help with that also.

 

[tvguy]

That is what our kids have as well. The "authorized user" isn't as effective at building credit as having their own card. The kids would put gas and food on the card and pay it off each month. Having installment credit is also a very, very good idea, especially when it comes to buying their first car (aka student loan).

My daughter went to school in England 2013-2014 and had her own student credit card. She had a checking account that I could add funds to. She literally would charge something, then pay off the bill that night. She must have built up a great credit score, because literally every day since she got back to the U.S, she gets a credit card offer in the mail.

 

[Sadie22]

I did it for my DS but only for enough time to build his credit 1-2 years. I then was removed, he was on his own.

Be very careful to monitor it online & any sign of trouble shut it down. My SO did this for his son and the had a blow out over some family trouble. His son stopped paying the card but SO ddin't know since bills/phone were in son's name. SO got stuck with the card since he was the main party. It cost him over $6000, and dented his almost 800 FICO score. It has taken almost 2 years to get it to start to recover.


And no he never thought this could happen in a million years, life is funny sometimes.

This is the reason not to add anyone to your own credit cards and not to co-sign loans. No matter how trustworthy the person is. That person's bad credit decisions or inability to pay due to any circumstances can come back to haunt you.