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Established Member
Drash
Posts: 11
Registered: ‎07-14-2012
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Re: At what age do you make your child an AU?

I put my kid on my card with the least amount_300 when she turned 10, i keep the card but my main long term goal is for her to have good credit by the time she is18, she 11 now and i only give her the card when she goes away for soccer just for meals, but people have different situations.

drash
Valued Contributor
my-own-fico
Posts: 1,300
Registered: ‎01-05-2010
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Re: At what age do you make your child an AU?


Drash wrote:

 

I put my kid on my card with the least amount_300 when she turned 10, i keep the card but my main long term goal is for her to have good credit by the time she is18, she 11 now and i only give her the card when she goes away for soccer just for meals, but people have different situations.


 

I'm not sure it makes any difference whatsoever. If she starts at 18, it may well be exactly the same.

 

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Dalanar
Posts: 102
Registered: ‎05-27-2014
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Re: At what age do you make your child an AU?

If a minor doesn't actually use the card, what is the financial/credit benefit of having them as an AU.  Is their credit history created at the time of their AU activation?   Say if a 15 year old is an AU on a card for three years but never charged a dime, does that  person (now 18) have an advantage somehow with the credit bureaus over another 18 year old who has never been an AU?

Thanks.

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myjourney
Posts: 26,659
Registered: ‎02-07-2013
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Re: At what age do you make your child an AU?


Dalanar wrote:

If a minor doesn't actually use the card, what is the financial/credit benefit of having them as an AU.  Is their credit history created at the time of their AU activation?   Say if a 15 year old is an AU on a card for three years but never charged a dime, does that  person (now 18) have an advantage somehow with the credit bureaus over another 18 year old who has never been an AU?

Thanks.


Yes the benefit is the AU will have a file and scores vs a 18 year old starting out fresh with no file or scores 

After 6 months from the AU being added that person will have a credit history 

Of course under manual review a analyst would see that all accounts were AU's 

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OHWWCB
Posts: 320
Registered: ‎07-02-2014
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Re: At what age do you make your child an AU?

I was just telling my mother the other day that when I have kids, I'm adding them as AU's early and teaching them about credit scores and money. No one ever taught me that. I was WILDLY irresponsible with money in college and shortly after. I overdrafted my bank account every single week. I haven't written a check in years because I got blacklisted from writing bad checks. It was bad. As I got older I always had a good income but I constantly found myself barely treading water because of overdraft fees and high interest. I'm 32 years old now and it has only been in the last year that I realized how ridiculous my situation was. A single person who makes over 100k a year with no kids should not be living paycheck to paycheck. 

 

I want to save my hypothetical kids from the mistakes I made. They'll probably be AU's at 13.


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my-own-fico
Posts: 1,300
Registered: ‎01-05-2010
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Re: At what age do you make your child an AU?


OHWWCB wrote:

 

I want to save my hypothetical kids from the mistakes I made. They'll probably be AU's at 13.


 

What's your plan for not having their pumping teenage hormones max out your cards? :smileywink:

 

Are you living within your means?
Regular Contributor
OHWWCB
Posts: 320
Registered: ‎07-02-2014
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Re: At what age do you make your child an AU?


my-own-fico wrote:

OHWWCB wrote:

 

I want to save my hypothetical kids from the mistakes I made. They'll probably be AU's at 13.


 

What's your plan for not having their pumping teenage hormones max out your cards? :smileywink:

 


lol I'm not giving them the cards! And just like some other posters have said, once they're older we'll start talking about financial responsibility.


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chiquita203
Posts: 8
Registered: ‎05-20-2013
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Re: At what age do you make your child an AU?

Got my 16 yo daughter the AMX gold.  This has several positives for our situation.

1. Build positive and aging credit history since she'll have her own CC# and "member since."  

2. No more cash allowance since she'll be using this for ALL her personal, social, and school expenses.  Also can use for her gas money and medical expenses such as copays and out of pocket costs.

3. Frees me up a bit cuz I can send her for my errands and grocery runs.

4. Faster point accumulation!!!!

5. Able to set limits as needed but have not had to since she received her card 10 months ago.

6. Able to check charges daily to avoid costly surprises.

this might not be so ideal for everyone...great for us.

Established Contributor
MT936
Posts: 700
Registered: ‎06-28-2014
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Re: At what age do you make your child an AU?

Good points made by chiquita

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Valued Contributor
my-own-fico
Posts: 1,300
Registered: ‎01-05-2010
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Re: At what age do you make your child an AU?


chiquita203 wrote:

Got my 16 yo daughter the AMX gold.  This has several positives for our situation.

1. Build positive and aging credit history since she'll have her own CC# and "member since."  

2. No more cash allowance since she'll be using this for ALL her personal, social, and school expenses.  Also can use for her gas money and medical expenses such as copays and out of pocket costs.

3. Frees me up a bit cuz I can send her for my errands and grocery runs.

4. Faster point accumulation!!!!

5. Able to set limits as needed but have not had to since she received her card 10 months ago.

6. Able to check charges daily to avoid costly surprises.

this might not be so ideal for everyone...great for us.


 

Amex charge cards are the one AU exception (15 years instead of 18). See How early can I add my kids as AUs?
1) That certainly is a nice initial perk.
2) I don’t know if EVERYONE takes Amex…
3-6) Benefits mostly you!

Are you living within your means?

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