Minimum age for credit card???

[kandb]

I just got a Disney Rewards offer in the mail for their Chase Visa. I am going to sign up for it, as it comes with a $200 Disney gift card. If I sign up a authorized user, I get another $50 gift card. Can I sign up my daughter as an authorized user? She is 15 years old.

 

[hurt817]

Yes, you can add anyone as an AU - no minimum age. My sons have been AU on my cards since they were 12 to help build their credit.

 

[kandb]

Yes, you can add anyone as an AU - no minimum age. My sons have been AU on my cards since they were 12 to help build their credit.

Great, thanks. She will be so excited, especially since it is a Disney credit card. She will have to pick her favorite design.

 

[starry_solo]

@kandb : is your offer for the no annual fee card? Just want to make sure as you rarely see those around (except for referrals from existing card members).

 

[MrsPete]

Voice of cautious reason: Tread carefully in this decision.

I helped my girls get a credit card and a checking account when they were each 17 -- the summer before their senior year in high school. That gave them a year of living at home /using those items under my supervision before they started college. The credit cards only had a paltry $300 limit. Why? Because -- if they didn't follow my advice -- I didn't want them to have the ability to dig themselves in too deeply. They learned how to use "invisible money" well, and neither has ever had a problem with credit cards or checks -- but you're talking about a child two years younger. She'll need more supervision.

Done well, your proposal can help her learn to manage money; done poorly, it can hurt you both and cost more than the $50 gift card.

If she's an authorized user on your account, will she have full access to your entire credit balance?

And, yes, definitely check to see if an annual fee is part of this card.

 

[dhardawa]

Voice of cautious reason: Tread carefully in this decision.

I helped my girls get a credit card and a checking account when they were each 17 -- the summer before their senior year in high school. That gave them a year of living at home /using those items under my supervision before they started college. The credit cards only had a paltry $300 limit. Why? Because -- if they didn't follow my advice -- I didn't want them to have the ability to dig themselves in too deeply. They learned how to use "invisible money" well, and neither has ever had a problem with credit cards or checks -- but you're talking about a child two years younger. She'll need more supervision.

Done well, your proposal can help her learn to manage money; done poorly, it can hurt you both and cost more than the $50 gift card.

If she's an authorized user on your account, will she have full access to your entire credit balance?

And, yes, definitely check to see if an annual fee is part of this card.

I added my daughter as an authorized user around 16 and it was fine. She didn’t even have her own card. It was nice though because I could hand her my card and send her to the store and didn’t have to worry about it. She was legally able to use my card. Authorized user doesn’t mean she’s getting her own credit card.

 

[wendow]

I have added both my dd's as AU'ers to a credit card of mine. I did it when they were each about 15yo. When the card arrived in the mail, I put one purchase on it and then 'sock-drawered' the card. Once my dd18 was driving and able to stop by the store for me or needed to fill up the gas tank, I allowed her to carry the card and use it. If she ever made a purchase that I didn't authorize (and she never did), she knew she would be responsible for paying for it.

My dd18 recently got her own Discover IT card and her credit score was 810. I'm pretty sure being an AU'er on my card all these years helped her out a bit there

 

[tvguy]

Both my kids got Wells Fargo Checking Accounts and Credit Cards as part of the banks student banking program. Their own credit, not mine, very low limit.

 

[KSR0330]

I made my son as an AU on one of my cards when he was 17. I thought it would be good idea because I knew he'd be going to college this year. It's convenient because I can have him put things he needs on the card. I made it clear that he's not to use it unless 1. it's an emergency (he's very level-headed, so he's clear as to what an emergency is ) 2. I tell him that it's okay to use on a certain item. It's been working out great so far!​

 

[kandb]

@kandb : is your offer for the no annual fee card? Just want to make sure as you rarely see those around (except for referrals from existing card members).

Yes No annual fee. I will get a $200 Disney gift card after spending $500 in the first 3 months. If I have an authorized authorized user within the first 3 months, we get another $50 gift card.

It has an invitation code on the application that came in the mail.

 

[starry_solo]

Yes No annual fee. I will get a $200 Disney gift card after spending $500 in the first 3 months. If I have an authorized authorized user within the first 3 months, we get another $50 gift card.

It has an invitation code on the application that came in the mail.

OK good. That is interesting though b/c right now, the offers they have for referrals are $200 statement credit (not a gift card). I referred my dad, he got the $200 statement credit in the same statement as the $500 purchase. We were pleasantly surprised!

 

[kandb]

@kandb : is your offer for the no annual fee card? Just want to make sure as you rarely see those around (except for referrals from existing card members).

The strange thing is that this offer came in the mail within 2 months of me applying for the Disney Rewards Chase that has an annual fee of $49 but gives you $200 cash back. I signed up for this card because we were going to be going to 3 restaurants that offered a 10% discount for using the card while we were in WDW a few weeks ago.

 

[MomToOne]

I've had DD18 as an authorized user on a couple of accounts since she was 15 or 16 - different banks have different rules on the age where this is allowed, just call the bank to see what age is OK.

(Since starting college, DDs been getting lots of credit card apps but she and I discussed it and decided waiting a few more years was the best action. For now, she's happy with her regular debit card.)

 

[hsmamato2]

you can make her an AU but don't actually give her the card to use..... so you get the bonus but she doesn't technically have the card in her hand,unless you want her to.

 

[tvguy]

I've had DD18 as an authorized user on a couple of accounts since she was 15 or 16 - different banks have different rules on the age where this is allowed, just call the bank to see what age is OK.

(Since starting college, DDs been getting lots of credit card apps but she and I discussed it and decided waiting a few more years was the best action. For now, she's happy with her regular debit card.)

Getting kids their own account does help establish their credit. And that can be tough now. DD has had her own credit card since she was 18, and is 27 now. She has a rental history, but unfortunately it was in England and they don't report to U.S. credit reporting agencies.
She was trying to pre-qualify for a mortgage but neither of those histories were enough to get her a decent rate despite a 20% down payment. So she bought a car on credit....had to go with a 6% rate with her lack of credit history even though she could have paid cash. This so she can establish her credit. She got a 5 year loan but will have it paid off in a year. They told her she had to keep the loan for 8 months for it to count on her credit record.
So sadly, while credit can get you into trouble, a limited credit history can handicap you too.

 

[4kids4karen]

I just did a quick google search to find in Community Property states, the AU is considered a joint account holder and assumes the debt upon death of the primary card holder. Just something to think about.

 

[4kids4karen]

I am a fan of secured credit cards for younger folks to build credit. As I am not in a community property state, I may carefully consider adding my teens to credit cards that are 100% paid off and not give them a card to it. My oldest son, I need to help him build his credit. He is 26 and only two accounts show on his credit, one being a secured card. I was thinking of 1) increasing the limit and 2) I need a new laptop as mine is on it's last leg, so have him get a best buy card and purchase my new computer on it (but I would make the payments). Last year, I really should have put the mattresses from Mattress Firm in his name but he was at work when I purchased them (It was a mattress for him and his younger brother). All four of my kids got USAA Youth Checking accounts at age 10.

 

[supersnoop]

I just did a quick google search to find in Community Property states, the AU is considered a joint account holder and assumes the debt upon death of the primary card holder. Just something to think about.

That would only apply to spouses in community property states, not children.

 

[4kids4karen]

That would only apply to spouses in community property states, not children.

There are cases where the creditor went after an AU for the entire debt. From what I have read, it is mostly when the AU makes a purchase on the credit card after the primary cardholder's death, even if that purchase was for funeral expenses for the primary card holder. The AU needs to be very aware that if the primary card holder passes, that the account needs to be closed immediately. So if a parent passes away and the child uses that card as an AU to purchase airline tickets to come home from college due to the parents death, the creditor can then go after them for the entire debt. Just so many scenarios that I would not want to even put my kids through. My son passed away less than 3 months ago at age 24 so these things are things that I think about now when making financial decisions that may impact my other children.

 

[Steph01002]

Both my kids are AUs on my Disney Visa. 13 and 14 years old now, but they have had the cards for a little over a year. They keep them with them for emergencies and will ask permission in other instances. If they put anything else on the card, they give me cash... mainly online purchases. I don’t think I have to worry... my 14 year old went to Disney for a week with her friend and friend’s parents and only spent $200 including all her food! She’s thrifty, no worries trusting the kids with a credit card! More convenient for us to use cards than cash.