Reply
New Visitor
jfs2008
Posts: 1
Registered: ‎08-31-2009
0

Establishing Credit for Teen

When my daughter turned 18 last year, she applied a received a Citibank credit card with an $800 limit.  She has been using it for a year, but pays off the bill as soon as she uses it and does not run a balance.  She also has a small Citibank student loan for about $3500 that will not begin to be paid until she graduates college.

 

Anyway, we just pulled per Experian report for the first time (the other two agencies want her to write & submit proof of identity), and her student loan is being reported, but her credit card is not on the report and so, there is no history of her using a credit card and paying her bills.

 

Is there a reason for this?  Could it be because she is paying the bill as soon as she uses the card and not running a balance?

 

What is the best way for her to build up her credit rating & get her credit card reported?  Experian has her vantage score at 746 and a risk grade of C, which I guess is fair for a 19 year old college student with little credit and history.

 

Can I piggyback her on my husband & my credit by enrolling her as an authorized user on our credit cards?  I wouldn't give her the card, but would use it myself to make several purchases to help her credit.  Our Fico is over 800.

 

Thanks for any help/suggestions.

Established Contributor
jackg
Posts: 558
Registered: ‎04-26-2007
0

Re: Establishing Credit for Teen

You hit the nail on the head!! If she pays in full before they report to the CRA's some CCC's wil simply not report. In order to get her history reporte she must let it report with a balance due. After that cycle she can go back to her old routine for a while. I recommend that she let a balance due to report every 6 months or so because FICO scoring likes it when you use your credit. I predict, confidently, that she will see a score increase after she lets her Citibank report a balance due. Both Citibank and FICO like to see usage. I cycle all my cards every 3 months.
FICO scores on 07/31/14:
EX=730
EQ=716
TU=740
Established Contributor
YoungEntrepeneur
Posts: 586
Registered: ‎03-03-2009
0

Re: Establishing Credit for Teen

[ Edited ]

I don't carry a balance on my Citi card and they still report. I would call customer service and ask them why they haven't reported to the credit bureaus for one year.

 

Also, it would be a good idea to add her as AU onto your CC's to give her some history on her credit reports. It will be a little easier for her to obtain CC's.

Message Edited by YoungEntrepeneur on 08-31-2009 01:53 PM
Moderator Emeritus
MarineVietVet
Posts: 14,163
Registered: ‎07-14-2009
0

Re: Establishing Credit for Teen


jfs2008 wrote:

When my daughter turned 18 last year, she applied a received a Citibank credit card with an $800 limit.  She has been using it for a year, but pays off the bill as soon as she uses it and does not run a balance.  She also has a small Citibank student loan for about $3500 that will not begin to be paid until she graduates college.

 

Anyway, we just pulled per Experian report for the first time (the other two agencies want her to write & submit proof of identity), and her student loan is being reported, but her credit card is not on the report and so, there is no history of her using a credit card and paying her bills.

 

Is there a reason for this?  Could it be because she is paying the bill as soon as she uses the card and not running a balance?

 

What is the best way for her to build up her credit rating & get her credit card reported?  Experian has her vantage score at 746 and a risk grade of C, which I guess is fair for a 19 year old college student with little credit and history.

 

Can I piggyback her on my husband & my credit by enrolling her as an authorized user on our credit cards?  I wouldn't give her the card, but would use it myself to make several purchases to help her credit.  Our Fico is over 800.

 

Thanks for any help/suggestions.


As Jack said let a balance report but PIF (pay in full) before the due date each month to avoid any interest charges. Adding her as an AU can help IF the account is older than any of hers, IF the payment history is long and clean, IF the utilization is very low, and IF it will report to the CRA's. Not all cards will do this. You need to ask the company first. She will inherit the entire history of this account. One caveat however; if this account starts to go south her credit will be affected as well. Keep that in mind. It sounds like the account you have in mind is a good choice.

 

 

(myfico)
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783

 

CC interest free as of 8/09
Time can heal all wounds and a low FICO.
"Hello my name is Sandy and I'm a recovering crediholic".

Moderator Emerita
Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
0

Re: Establishing Credit for Teen


jackg wrote:
You hit the nail on the head!! If she pays in full before they report to the CRA's some CCC's wil simply not report. In order to get her history reporte she must let it report with a balance due. After that cycle she can go back to her old routine for a while. I recommend that she let a balance due to report every 6 months or so because FICO scoring likes it when you use your credit. I predict, confidently, that she will see a score increase after she lets her Citibank report a balance due. Both Citibank and FICO like to see usage. I cycle all my cards every 3 months.

The only one of my cards that doesn't report each and every month, balance or no, used or not, is a J.Crew store card. My other store cards update, even without cutting an official statement. (Just sort of an FYI.)

If a card goes for several months without reporting, and then it shows a balance, you'll get a one-time score ding. Just be aware of that. It goes away the next month.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
0

Re: Establishing Credit for Teen

This card should be reporting along with all of its history. A simple phone call should resolve the matter.
Valued Contributor
Jazzzy
Posts: 2,679
Registered: ‎07-29-2009
0

Re: Establishing Credit for Teen

Our daughter is 16. Even when she was only 15, one of our cards let us add her as an AU. When she turned 16 we added her to two more cards (that was their minimum age requirement).

 

We have never attempted to pull her report. (Can you even do that when they are 16? Never thought to do it.)

 

In our case, our daughter actually carries these cards. She has available credit right now of $31,300. We weren't even thinking about FICO scores. We thought it was important to teach her to use debit/credit cards responsibly before she goes off to college in a couple of years. We've never had a problem. She asks permission before using them...but she knows if she has an emergency that she has our OK. She has never used them irresponsibly.

Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
0

Re: Establishing Credit for Teen

No you cannot pull a CR or FICO for minors.

 

If there is a case of ID Theft, then a police report must be filed and then forwarded to the CCC/creditor and CRA's.

 

 

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}