Adding your teen as authorized user to credit card?

[JanaDee]

Has anyone done this? I'm thinking about doing it for DS18, not necessarily to give him a credit card, but to help him start building credit.

I may not even give him a credit card, just add his name as an authorized user.

Are there any negatives I'm overlooking if I do add him?

 

[Tinkerdreams]

Has anyone done this? I'm thinking about doing it for DS18, not necessarily to give him a credit card, but to help him start building credit.

I may not even give him a credit card, just add his name as an authorized user.

Are there any negatives I'm overlooking if I do add him?

Yes, I've done this. When they went to college I added them so that they could purchase books, food, etc. It automatically gives them the same credit score as you have (that's what the cc company told me).

Just be sure you can trust them not to run up the card.

 

[aaarcher86]

I don't know if there are negatives but my mom put a cc in my name around the same age and had a recurring bill she'd pay in it.

My credit was good enough that I could buy my house at 20 with a great interest rate.

I'd definitely recommend it if nobody chimes in with some reason you shouldn't.

 

[HM]

Has anyone done this? I'm thinking about doing it for DS18, not necessarily to give him a credit card, but to help him start building credit.

I may not even give him a credit card, just add his name as an authorized user.

Are there any negatives I'm overlooking if I do add him?

My DH actually opened a new credit card and named both our teens as authorized users. We actually gave them cards and they use it for things like textbooks, gas for the car, meals not covered by their meal plan, presciptions, etc. DH doesn't use it at all, we have plenty of our own. We haven't checked to see if they actually have a credit score yet.

I was actually talking with my insurance agent yesterday and she said her father did what you are thinking....authorized her as a user, but never gave her a card. She said in the end it actually worked against her when she went to buy a house, because she was listed on all his cards still at that point and it looked like she had a huge amount of credit line. She had to be taken off his cards and then try again. So don't forget at some point to take them off.

 

[AnnaS]

Yes, I have done this. I also added each one to my Macys card. They were very good with them. Only used for an emergency or with my knowledge before hand.

 

[JanaDee]

My DH actually opened a new credit card and named both our teens as authorized users. We actually gave them cards and they use it for things like textbooks, gas for the car, meals not covered by their meal plan, presciptions, etc. DH doesn't use it at all, we have plenty of our own. We haven't checked to see if they actually have a credit score yet.

I was actually talking with my insurance agent yesterday and she said her father did what you are thinking....authorized her as a user, but never gave her a card. She said in the end it actually worked against her when she went to buy a house, because she was listed on all his cards still at that point and it looked like she had a huge amount of credit line. She had to be taken off his cards and then try again. So don't forget at some point to take them off.

Thanks for that tip. That was something I hadn't thought about. We wouldn't plan on having him on there indefinitely, probably just for a couple years.

 

[sunshinehighway]

You didn't mention they type of card but with some cards out can set limits for authorized users. American express is like that. All users on the account get different card numbers so you can see who is charging what and you can set limits for the AU cards.
With Chase (as least the ones I have) the card numbers are the same for everyone on the account so there's no way to know which card is buying what and also you can't set a limit for each user.

 

[JanaDee]

You didn't mention they type of card but with some cards out can set limits for authorized users. American express is like that. All users on the account get different card numbers so you can see who is charging what and you can set limits for the AU cards.
With Chase (as least the ones I have) the card numbers are the same for everyone on the account so there's no way to know which card is buying what and also you can't set a limit for each user.

It would be a Chase visa and he and I would be the only 2 people on the account. DH has his own.

 

[antmaril]

We added our son as an authorized user to our cc when he was going off to college. It really helped him to establish a credit score.

 

[PlutoPony]

We did that for our son when he turned 16 and got a DL. I wanted him to have something to use in case of an emergency. He knew before he got it that I go over the CC bill line by line every month so he couldn't slide something in that we weren't aware of. It's been 4 years and has worked out well. Very thankful he had it when he had a trip to the ER in college and the copay was $250 (he was ok). Charged it to the CC rather than his debit card.

He bought a car a year ago using a special deal and financing arrangement Ford did (does still?) for college students. Dad co-signed but they pulled up my son's credit score and he did have one (and it was very good). So the CC must have given him a credit score, there's really nothing else that would have shown up at his age.

 

[Sadie22]

Our kids went off to college with new checking accounts and credit cards through a bank. They had savings accounts there with earnings from summer jobs. The credit limits on the accounts may have been $500 or $1,000. They would charge something and then almost immediately transfer the payment from checking to the credit account. They learned of other students who got in trouble for overcharging on parents' accounts or who signed up for several cards on their own and did not understand how they worked.

We made sure that the bank had an ATM on campus.

I never worried about them getting into trouble with credit. I wanted them to be as independent as possible and never considered adding them to one of my cards as an authorized user.

 

[LBIJim]

You didn't mention they type of card but with some cards out can set limits for authorized users. American express is like that. All users on the account get different card numbers so you can see who is charging what and you can set limits for the AU cards.
With Chase (as least the ones I have) the card numbers are the same for everyone on the account so there's no way to know which card is buying what and also you can't set a limit for each user.

The Master Card I had at the time let me do it the same way AMEX does. Each daughter got a card with a different number than mine, and I could see what they were using it for. I think I set a $500 limit on them to start. It wasn't Chase, but I don't remember which brand it was, because it's since been taken over by BOA.

 

[SC Minnie]

Our kids went off to college with new checking accounts and credit cards through a bank. They had savings accounts there with earnings from summer jobs. The credit limits on the accounts may have been $500 or $1,000. They would charge something and then almost immediately transfer the payment from checking to the credit account. They learned of other students who got in trouble for overcharging on parents' accounts or who signed up for several cards on their own and did not understand how they worked.

We made sure that the bank had an ATM on campus.

I never worried about them getting into trouble with credit. I wanted them to be as independent as possible and never considered adding them to one of my cards as an authorized user.

Same here.

DD is a junior in college and she got a credit card through our credit union after she turned 18 before heading to college. It had a $250 limit which she kept paid down. She called last fall and asked them to increase it to $500 and they did. I never considered putting her on our cards. I do have access to her bank account so if she needs additional funds we can get them to her.

 

[Bluestars]

When my son was 16, I took him into my bank and we opened up a checking account in both our names that was linked to my main account. He got a Visa debit card and was able to use it for purchases or to withdraw cash. I imagine he could have also gotten a credit card on the same account, but we didn't look into that option.

It was nice because I was able to see where he spent money and add money to the account online as needed by transferring money from my regular account into this account. He could deposit checks and cash into it.

When he turned 18 he opened up his own account, but I still have this one open to deposit money for school items or necessities.

 

[sunshinehighway]

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.

 

[JanaDee]

When my son was 16, I took him into my bank and we opened up a checking account in both our names that was linked to my main account. He got a Visa debit card and was able to use it for purchases or to withdraw cash. I imagine he could have also gotten a credit card on the same account, but we didn't look into that option. It was nice because I was able to see where he spent money and add money to the account online as needed by transferring money from my regular account into this account. He could deposit checks and cash into it. When he turned 18 he opened up his own account, but I still have this one open to deposit money for school items or necessities.

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. It isn't linked to any other accounts.

 

[xlxo]

When I was that age.... I remember seeing countless "student" credit applications at my college/university. I recommend he go fill out one of those applications forms. Student credit cards may be easier to apply than a regular card and he has his own independent credit.

At the end of the month.... he can show you how much he owes and you can pay for it online through your bank.

https://www.google.com/search?q=student+credit+cards

 

[JanaDee]

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.

Thanks, I will do that today. If I can't find a definite answer, I'll call.

 

[JanaDee]

When I was that age.... I remember seeing countless "student" credit applications at my college/university. I recommend he go fill out one of those applications forms. Student credit cards may be easier to apply than a regular card and he has his own independent credit. At the end of the month.... he can show you how much he owes and you can pay for it online through your bank. https://www.google.com/search?q=student+credit+cards

He is in high school.

 

[wvjules]

Yes, I've done this with my son. When he went to college I added him so that he could purchase books, food, etc. It automatically gives them the same credit score as you have (that's what the cc company told me).
Just be sure you can trust them not to run up the card. DS is great and asking/letting me know if he has used it and how much.

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.