Adding a child as an authorized user on Credit Cards - Update

My parents did the same thing in high school. It's helped me keep s good credit score into middle adulthood. However, just make sure you teach her the importance of not abusing that great score. I was able to open multiple credit cards at LSU, because they were giving away t-shirts before games for signing up. I ended up $40k in gambling debt by graduation. Knew a girl that did the same with shopping. So access to money is great, but it's terrible if you don't know how to use it.

I’ve thought about this and my parents did it for me as well when I was around 13. A few thoughts on your post:

Does adding them create any additional risk of a stolen identity? Sure they have a SSN before, but I’m not sure if adding them and creating that credit history makes them more vulnerable. I’m not sure it matters, but perhaps that should also come with some other ability to monitor their credit history?

I learned when I was younger that a high score alone doesn’t mean much. It helps, but the lack of history starts to hurt. I got a Chase Student Card when I turned 18 (same card account I have today as a Freedom). I also got a 1 year secured loan from a bank for like $1000 to help build a payment history, etc. I also recall being disappointed that I was docked like 0.5% on a car loan because despite my credit history or score, I hadn’t had a previous vehicle loan.

Keep in mind that the card you add them to will continue to show up on their credit history. That card my parents added me to over 20 years ago still shows on my credit reports. So any missed payments, large balances, or closing the account will influence the kids credit for the life of the account.

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Keep in mind that the card you add them to will continue to show up on their credit history. That card my parents added me to over 20 years ago still shows on my credit reports. So any missed payments, large balances, or closing the account will influence the kids credit for the life of the account.

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Yes.. absolutely. That's why I plan to help her start her own cards soon so she can be weened off mine in the future and have her own good history.

Be careful about shotgunning applications for credit cards. This could red flag her to different agencies and many do not like it. If they see someone trying to get multiple cards in one weekend, that is suspicious. Also, just because she has an almost 800 credit score does not mean she will get an Amex or Sapphire card automatically. I know many people that have been denied both of those cards with 750+ credit scores. They rely heavily on DTI and income earnings.

Instead, I would pick 2-3 entry cash back cards and target those for application this weekend. See which ones offer the most on cashback and who has the highest "free money" promo going on. Also, since its her first card, I would stay away from ones that have annual dues.


And please stress to her to pay it off each month. The cashback and free money promo mean absolutely nothing if you are charged 20$ for interest the first month. (it would take spending 2,000$ at 1% cash back to regain that money). I have not been charged interest on any of my cards for the past 5+ years and I have over $3,500 worth of points built up for my paid for with points honeymoon.

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I have over $3,500 worth of points built up for my paid for with points honeymoon.

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You should be cashing that out and putting in a high yield savings account or something.

I bumped my wife's score big time when we were younger by doing this. Some cards add the complete history of a card the first month they report.

In the 90's and early 2000's you could pay to get added onto someone's card as an AU to establish credit.

We do need to fix one thing about our credit reporting, the hit you take when you have a major medical event. I was in the ICU for weeks, the doctor wasn't sure I was going to live in December 2015. I was in the hospital all the way through May 2016 and when I got out I was on bed rest for a couple of more months. The first weekend I could get out and do something, and it wasn't much, it may have been just going out to eat was the day before the 2016 floods. I missed some payments and stuff that year, I have been 100% on time since 2017, credit usage sub 10%, everything old paid off and I still barely hit 700 on good days. It was 800+ before... It was in the 500's for a long time.

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My dad got me a credit card when I was 15. He told me never to charge more than I could pay off at the end of the month when then statement came. I'm now 44 years old and have never carried over a balance on any of my cards. I think that's some of the best advice he ever gave me.

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Yep, good advice. I actually pay mine off once a week which is what I'm teaching her to do. Helps you manage the spending better, but the main reason I do it is it keeps my utilization very low, like 1%.