Making my kid an Authorized User on Cap1

[Anonymous]

I was thinking of making my 15 year old son an authorized user on my capital one quicksilver card. He could use it for gas and get me rewards! I was also thinking of making him an authorized user on my capital one platinum card. He can use this for his own purchases and then pay me back.
Does this sound like a good idea to help him build credit? I want to hear your thoughts.
Thanks!

[Callandra]

People tend to have mixed feelings on this; in one way it's good since it will start building his credit and you can reap some rewards. I don't know your son but I'm assuming he's trustworthy as if you do make him an AU, you are responsible for everything he charges. He will have no liability in paying it back. 

I personally think that people should build their own credit by themselves (I did it all on my own, I didn't AU-free ride off my parents and it's much more rewarding to build things on your own) but I know others want their kids to have a great start and give them that. You might want to sit down and explain to him how credit works and to explain that he is expected to pay you for all his charges (and you can even set up interest on it if he charges things that he cannot pay off right away) as if you were the bank. Another thing to consider is to get an Amex since they allow you to set a limit on charges from AUs (so you coud give him a $100 limit). 

[morgacj2004]

I like the AX idea of a $100 limit. That is the route I would take. Most 15 yo would have difficulty in handling a CC but then again I dont know how mature your son is.

[Anonymous]

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@Callandra wrote:

People tend to have mixed feelings on this; in one way it's good since it will start building his credit and you can reap some rewards. I don't know your son but I'm assuming he's trustworthy as if you do make him an AU, you are responsible for everything he charges. He will have no liability in paying it back. 

I personally think that people should build their own credit by themselves (I did it all on my own, I didn't AU-free ride off my parents and it's much more rewarding to build things on your own) but I know others want their kids to have a great start and give them that. You might want to sit down and explain to him how credit works and to explain that he is expected to pay you for all his charges (and you can even set up interest on it if he charges things that he cannot pay off right away) as if you were the bank. Another thing to consider is to get an Amex since they allow you to set a limit on charges from AUs (so you coud give him a $100 limit). 

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I got an AU- free ride from my parents. My cards and scores are all from the last 1.5 years of personal credit. I've made nearly $1000 in rewards over that time. I can tell you first hand it is far more rewarding than if I had to start from scratch

[Anonymous]

I didn't get anything from my parents other than an example of what not to do. That being said, I have added my son as a AU on my QS1, but I did not have them send him a card. He can have the AAoA boost, and I will explain to him why I added him and have serious talks about money and credit as he grows. I debated about it for a long time, because I too had the school of thought that it was better to earn it on his own as I did. But I think back to the many times that I wish my parents had been responsible enough to teach me about money and to help me pay for things along the way. I won't help him pay, but I can give him a little boost with the AAoA and teach him what I wish I had known. I may change my mind later and remove him, but for now, he is a AU on a 5k card with perfect (but short) history.

[firesword]

I added my son (12 y/o)as AU so that he starts building some credit history, but I did not give him the card. When I think he is responsible enough I might let him use it while keeping an eye on the account.

[Anonymous]

I have both my 22yo sons in college as QS AUs. It sure is interesting to see what they spend $$ on. One is definitely more judicious in usage but, it saves the headaches with sending money.

Especially when they call and say they need it TODAY. Interbank transfers can be slow, especially weekends! PLUS, we know exactly where the $$ is going.

Thought about amex but, limited acceptance keeps those in the SD!

[Anonymous]

I've been thinking about the exact same thing with my 15 year old son (although he'll be 16 next month). I like how Amex allows you to set spending limits for authorized users, but the fact that it's not accepted everywhere could become a problem. I'm also on the fence as to whether or not I should add him but not give him the card, that way he builds credit but I don't have to worry about something going wrong. Although it would be a good learning experience for him, and I wish my parents had taught me about credit when I was younger so I could have avoided learning about it the hard way.

[dethkultur]

Hmmm.... why does a 15yo need a card for gas? Won't he be with you or his mom while he's driving at 15?

On the AU question, there aren't any advantages to making him an AU right now. If you make him one at 18 it will have the same impact - the age/date associated with it is the date for your account, not when he is made an AU the way I understand it.

I support the need to teach kids about credit, limits, budgets, good spending habits, money awareness, etc, but a real CC with a father-size limit is unneeded. Get him a VISA Buxx, or some other prepaid (there are a dozen, including the Target prepaid Amex) that you or he can put money on, and is impossible to go over the limit (or in this case, under the limit). He'll learn all the essentials that way, and encounter barriers when he is making dumb decisions when you aren't there.

A real CC is like giving a 15yo a porsche.  I mean, you want him to have a porsche one day sure, but there's a few things to learn on a cheaper car first.

[UncleB]

I don't believe there's a right/wrong answer to this question... it really depends on the kid, and on the parents.

When I went off to college, my grandparents made me an AU on their Amex Green card.  It came in handy a few times when there were surprises at the college bookstore and if I ever ran short I didn't hesitate to use it for necessities, and I promptly paid them back.  Back then, we weren't even aware of how being an AU impacted credit history; I had it strictly to actually 'use'.

For some families, this is a fantastic idea, for others it's asking for disaster. 

I would say to the OP, if you're really having to ask if this is a good idea for you, maybe you already know the answer...