When to start establishing credit for teens?

[Anonymous]

Any advice as to when to start establishing credit for our responsible 16 yr old?  He will start college before his 17th birthday. 

I was thinking of adding him as a user to some of our credit cards.  We use them only to get the rewards & pay them in full each month.  Will this show as credit on his report?  Should I open his own accounts?  He is extremely responsible & the credit would be monitored. 

I considered financing his auto with me only as a co-signer. 

Any thoughts???

[Anonymous]

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IslandBound wrote:

Any advice as to when to start establishing credit for our responsible 16 yr old?  He will start college before his 17th birthday. 

I was thinking of adding him as a user to some of our credit cards.  We use them only to get the rewards & pay them in full each month.  Will this show as credit on his report?  Should I open his own accounts?  He is extremely responsible & the credit would be monitored. 

I considered financing his auto with me only as a co-signer. 

Any thoughts???

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Check out NASA FCU they have  teen card hat I hav my eye on for when my kid is 16.  Gives you control and the kid freedom wihout those rebuilder and builder rates.

[Anonymous]

My credit union has a credit building account for teens as long as parent co-signs. you might check out local CU's and see if any of them do that.

[Anonymous]

CRA's by law cannot keep a credit file on a minor.

Wells Fargo has teen checking and savings accounts for kids 13-17.  When they turn 18, WF graduates them to a College account (even if they're not in college) and gives them a MC.  All for FREE!

[Anonymous]

perhaps the file couldn't be started yet, but once the child turns 18 i would hope that the history on the account would show (date opened, no lates, etc). so, getting an account at 17 might give the child an instant 1 year credit history at 18. that would be kind of nice assuming they manage it properly.

[Anonymous]

Yes the entire hsitoy on the card would report from opening date.

[Anonymous]

History sure does carryover.  My 18 year old has AU accounts on her CR for TL's opened in 1991.

[y0rascal]

do you need to be a member for NASA FCU to get a teen credit card???

also any other places that will let you get a credit card for teens 16-17 yrs of age??? please list them trying to get my brother in law one....

when i was 17 cap one gave me a card of course my mom co-signed for me do they still do it???

[y0rascal]

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@Anonymous wrote:

CRA's by law cannot keep a credit file on a minor.

Wells Fargo has teen checking and savings accounts for kids 13-17. When they turn 18, WF graduates them to a College account (even if they're not in college) and gives them a MC. All for FREE!

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so does this mean that they will not receive a credit score until they are 18???

will they also maintain and keep the credit history so they start off with a good credit score???

[Anonymous]

They don't get the MC until they turn 18.  When they turn 18, the teen gets their own College account w/MC.  This is when their legal credit history begins and they will then have a FICO score.  Although the WF website says "Eligibility for this account is subject to approval and students must provide proof of enrollment at a qualifying accredited institution when the account is opened", when my daughter opened her account last month, they never asked for proof of enrollment.

WF Teen CheckingSM account:

• It's available to teens ages 13 to 17 with an adult co-owner.
• Teens enjoy the freedom to make purchases anywhere Visa® debit cards are accepted with their own Check Card. Parents have the ability to set daily limits on Check Card purchases and withdrawals from ATMs.
• There is no monthly service fee with free Online Statements.

Go the Wells Fargo web-site for more information on the College account.