Should I add my 17yo as an authorized user to help build her credit?

[Anonymous]

I have a few store cards that have 0 balances and a low credit limit.  I am looking to start building my daughter some credit in preparation of her going off to college.  She will turn 18 in October.  I was hoping to do something now to help.  I was thinking about adding her to one or 2 of my store cards as an authorized user.  They have 0 balance and I don't charge on them unless I can pay it off that same month.  Would this help build her credit?  She will graduate in May of 2018.  I just want to make sure that we are establishing her some good credit.  Can anyone offer advice or feedback?  If I posted this in the wrong place, please let me know!

[Anonymous]

We added our son at 16. He's 18 now. Has a 759 CS and his own CC now. We set a limit on his CC. (500). He paid it every month in full. And he does that now with his CC he's gotten on his own. We taught him over the 2 years the importance of credit, being responsible, and timely payments.
I'm a firm believer in forming habits. So in the 2 years I would like to think that paying a bill, being on time, paying it in full became a habit forming behavior that will always stick with him.

[ChargedUp]

I added my 17 year old to my Amex BCE to help her build a score up and show her how to use a credit card responsibly. She knows that she is responsible for what she charges to it, unless mom or I say otherwise. If all goes well for the next 3 months, I'll add her to another card.

[MyLoFICO]

I added my 16 yr old daughter a few months ago to my Discover card. It is unsecured now but only a $200 limit. I am pretty much going to turn it over to her to use and pay. I will keep an eye on it but this way she can learn to handle the payments over the next year. 

On a lighter note, I was thrilled to see so many good parents here doing there kids a favor and teaching them well how credit works at the same time. Kudos to you! 

[sarge12]

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@Anonymous wrote:

I have a few store cards that have 0 balances and a low credit limit.  I am looking to start building my daughter some credit in preparation of her going off to college.  She will turn 18 in October.  I was hoping to do something now to help.  I was thinking about adding her to one or 2 of my store cards as an authorized user.  They have 0 balance and I don't charge on them unless I can pay it off that same month.  Would this help build her credit?  She will graduate in May of 2018.  I just want to make sure that we are establishing her some good credit.  Can anyone offer advice or feedback?  If I posted this in the wrong place, please let me know!

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Over the years I've seen adding a teen as an AU work out well, I've also seen it work out horribly. It depends on the teenager involved and his/her level of maturity and trust worthiness. You as a parent know your child best and would be the best equipped to answer this. If the question is more geared toward wheather it might help their score the answer is maybe...some cards do not report AU to the CRA's, and some do...I would ask the issuer what their credit reporting policy is on AU's. It will almost certainly not help as much as a card in their name only, and some creditors disregard the AU data entirely when considering issuing new credit, if always paid in a timely manner, it certainly can't hurt their credit score.

[Anonymous]

I was added as an AU at 17. I'm still currently 18 going on 19. Was able to apply for my own BoA CC as soon as I turned 18, and just finished my first app spree last week and now I'm at 5 credit cards and 30k+ TCL not counting the NPSLs. I'd say if they are responsible it's definitely worth it.

Edit: if she has a bank account affiliated with your card that you AU her on as well it'd give a big boost in helping getting her first card as well as she turns 18 I believe.

[Anonymous]

That is great that you want to help your daughter to do well credit wise. First thing to keep in mind, an AU affects your credit as well so make sure that if you give her the card(s), that you trust her to not spend what she or you can't afford as you are on the hook. A way to remedy that is to keep the card yourself and have her as an AU for the score.

Secondly, you need to check with the bank who gave you the card you plan to AU her on. Some banks do NOT report AUs to the credit bureaus, others do. Wouldn't want you to waste your time and AU your daughter for her to be rejected later for "no credit history". My mom had a similar issue and couldn't add me as an AU when I turned 18 a few years ago. I ended up getting a very generous bank to give me a student card with a $500 limit by invitation only (not a publicly offered CC). Since then I started apping for cards to maximize rewards and in the few years have a great score and great cards. So if your banks don't offer to report AUs to the credit bureaus, consider a secured card (or student).

Just in case, the best secured card is the Discover Secured card, as it has rewards and Discover doesn't mind thin files anymore. Or the Capital One Secured, as they tend to accept people new to credit easily. I'm not as sure about student cards, but Discover or CapOne is usually recommended for that as well. 

[Kforce]

Yes -- add her as an AU (conditional on):

1 You have good credit.

2 The CC that you want to put her on reports to the Credit Bureaus.

3 You keep the utility low on the card.

4 It has a few years of history.

5 You keep/control of the spend/payments on the AU-Card. (to not lower your scores)

I started helping my daughter when she wad 16. now 19.

Added as AU on 2 of my Credit Union -CC's (3-years ago),

At 17 she got a secured CC, and she now has a 790 Fico.

[MyLoFICO]

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@Anonymous wrote:

That is great that you want to help your daughter to do well credit wise. First thing to keep in mind, an AU affects your credit as well so make sure that if you give her the card(s), that you trust her to not spend what she or you can't afford as you are on the hook. A way to remedy that is to keep the card yourself and have her as an AU for the score.

Secondly, you need to check with the bank who gave you the card you plan to AU her on. Some banks do NOT report AUs to the credit bureaus, others do. Wouldn't want you to waste your time and AU your daughter for her to be rejected later for "no credit history". My mom had a similar issue and couldn't add me as an AU when I turned 18 a few years ago. I ended up getting a very generous bank to give me a student card with a $500 limit by invitation only (not a publicly offered CC). Since then I started apping for cards to maximize rewards and in the few years have a great score and great cards. So if your banks don't offer to report AUs to the credit bureaus, consider a secured card (or student).

Just in case, the best secured card is the Discover Secured card, as it has rewards and Discover doesn't mind thin files anymore. Or the Capital One Secured, as they tend to accept people new to credit easily. I'm not as sure about student cards, but Discover or CapOne is usually recommended for that as well. 

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Can they get a secured card if they are under 18? Also, I wouldn't let them app any crapital one cards as their first. It might be a good card but 3 inq's right our of the gate would be a disservice. I would recommend Discover though. 

[Anonymous]

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@MyLoFICO wrote:

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@Anonymous wrote:

That is great that you want to help your daughter to do well credit wise. First thing to keep in mind, an AU affects your credit as well so make sure that if you give her the card(s), that you trust her to not spend what she or you can't afford as you are on the hook. A way to remedy that is to keep the card yourself and have her as an AU for the score.

Secondly, you need to check with the bank who gave you the card you plan to AU her on. Some banks do NOT report AUs to the credit bureaus, others do. Wouldn't want you to waste your time and AU your daughter for her to be rejected later for "no credit history". My mom had a similar issue and couldn't add me as an AU when I turned 18 a few years ago. I ended up getting a very generous bank to give me a student card with a $500 limit by invitation only (not a publicly offered CC). Since then I started apping for cards to maximize rewards and in the few years have a great score and great cards. So if your banks don't offer to report AUs to the credit bureaus, consider a secured card (or student).

Just in case, the best secured card is the Discover Secured card, as it has rewards and Discover doesn't mind thin files anymore. Or the Capital One Secured, as they tend to accept people new to credit easily. I'm not as sure about student cards, but Discover or CapOne is usually recommended for that as well. 

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Can they get a secured card if they are under 18? Also, I wouldn't let them app any crapital one cards as their first. It might be a good card but 3 inq's right our of the gate would be a disservice. I would recommend Discover though. 

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according to Kforce above yes; wish I knew about this when I was 17