topic Re: Making my kid an Authorized User on Cap1 in Credit Cards

Making my kid an Authorized User on Cap1

Anonymous — Thu, 30 Jul 2015 15:39:41 GMT

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!

Re: Making my kid an Authorized User on Cap1

Callandra — Thu, 30 Jul 2015 15:51:06 GMT

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).

Re: Making my kid an Authorized User on Cap1

morgacj2004 — Thu, 30 Jul 2015 17:15:51 GMT

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.

Re: Making my kid an Authorized User on Cap1

Anonymous — Thu, 30 Jul 2015 17:20:37 GMT

@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).

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

Re: Making my kid an Authorized User on Cap1

Anonymous — Thu, 30 Jul 2015 17:24:35 GMT

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.

Re: Making my kid an Authorized User on Cap1

firesword — Thu, 30 Jul 2015 17:24:45 GMT

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.

Re: Making my kid an Authorized User on Cap1

Anonymous — Thu, 30 Jul 2015 18:07:23 GMT

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!

Re: Making my kid an Authorized User on Cap1

Anonymous — Thu, 30 Jul 2015 18:25:39 GMT

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.

Re: Making my kid an Authorized User on Cap1

dethkultur — Thu, 30 Jul 2015 18:26:18 GMT

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.

Re: Making my kid an Authorized User on Cap1

UncleB — Thu, 30 Jul 2015 21:27:47 GMT

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...

Re: Making my kid an Authorized User on Cap1

Anonymous — Thu, 30 Jul 2015 21:30:47 GMT

Well technically you can make him a user and cut the card up when it comes he will just enjoy more history when he wants to go get credit on his own. sadly I will admit that I was better with my credit at 18 than my earlier twenties when i had much more responsibility and expenses. It's almost never a story of ignoring bills on purpose life gets in the way

Re: Making my kid an Authorized User on Cap1

Anonymous — Thu, 30 Jul 2015 22:44:50 GMT

I literally not 10 minutes ago made my daughter an AU on a card I just received in the mail. She is 15, extremely responsible and I'm not worried in the slightest. I have discussed the possibility with her before and explained my reason for giving her one, and how and when she can use it. She is driving now so having a card handy just in case is nice. Some kids I'd NEVER trust, but I have no worries with my daughter. We have discussed how credit works, how you pay the bills and how very important it is to be responsible with your credit and score. She even knows how long it takes stuff to fall off lol. I was in depth in our talks lol.

My parents never helped me, no AU for me gorwing up, no advice at all actually. That did not work as I made plenty of mistakes though my biggest issues happend becaus of things out of my control they were still painful lessons. I am still recovering now, but mainly becasue I'd not used credit for 10+ years and everything fell off so I'm almost starting over at this point. I'd like to share my knowledge and hopefully spare her the worst of my lessons.

Re: Making my kid an Authorized User on Cap1

Anonymous — Thu, 30 Jul 2015 22:46:46 GMT

get him his own secured card

Re: Making my kid an Authorized User on Cap1

Anonymous — Thu, 30 Jul 2015 22:53:06 GMT

@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).
Just because you built your credit all by yourself doesn't mean that everyone should do that. My mom added me on as an AU at 15 and it's done wonders for me. The day I turned 18 I got my Amex Blue, and it's my oldest card to date. My credit score is in the 810s+. I own a house, a nice car. I'm 27. Having a jump start on credit is a great thing. I'm completely for it if you know he's responsible. However, my mom got me my own account. She didn't just add me onto her own account, she opened up a separate card which she then added me as AU, and I set up an account online, and made the payments. She didn't pay for any of it. I acted as if it was my own (and it was) and she knew I wouldn't screw her over. So that is always a good way to do it. That way, they've earned it (to Callandra's point). Either way, it's definitely a good idea.

Re: Making my kid an Authorized User on Cap1

icyhot — Thu, 30 Jul 2015 23:45:19 GMT

I made my 16 year old sister an AU on my Cap1 Spark Card and set the limit to $100. Since its so small whatever she charges I pay back. However she was a user on my Forward and Delta and I took those cards from her after she lost her job and told her she could have them when she got a new one. Honestly, she's way more responsible than my mom, who's racked up serious charges and won't pay em back

Re: Making my kid an Authorized User on Cap1

Anonymous — Fri, 31 Jul 2015 01:11:54 GMT

I made my little brother an AU on one of my Cap1 cards, he's 5 years old. Shredded the card they sent me. Now he's getting preapproved offers in the mail.

Re: Making my kid an Authorized User on Cap1

mskarma — Fri, 31 Jul 2015 01:22:05 GMT

My mom added my little brother to her Amex gold card when he was 16. When he was 18 he was able to buy a car without a co signer. He is now 24 and has had 3 auto loans, a few credit cards, a house and a 787 credit score!

My my mom did not do this for me (I am 8 years older) and she had to co-sign on my first two auto loans and I had a much more difficult time building on my own then he did. When my kids is old enough I will add them as AU's to help them out.

Re: Making my kid an Authorized User on Cap1

Ravensfan2001 — Fri, 31 Jul 2015 01:31:53 GMT

I think making him an AU will help. You can teach financial responsibility at the same time. My 16-year-old is an AU on 3 of my accounts; he has 2 cards - Amex and Target. Amex is for emergencies only, and the Target is for the discount. No problems so far... *knock on wood*

Re: Making my kid an Authorized User on Cap1

Anonymous — Sat, 01 Aug 2015 02:05:33 GMT

My mom made me an AU on her CapOne card when I traveled internationally at 16. She never removed me and kept up with payments. As a result - I was able to get my auto loan and several other lines of credit by myself. My score was in the 670s by the time I actually personally got a line of credit.

I'm extremely thankful and I will definitely do the same for my kid.

Re: Making my kid an Authorized User on Cap1

Anonymous — Sat, 01 Aug 2015 11:27:19 GMT

I absolutely plan on doing this for my kid when he's older. He's only four now.

My parents taught me NOTHING about credit. I was really clueless about it and never had a card until I was in my later 20's. I carried balances and didn't know that affected my score (I thought meeting the minimum payments was good enough), and because I carried balances, when I got laid off of work in 2009 and couldn't find a new job quickly enough, it seriously screwed up my credit.

I'm thankful I'm older and wiser now, and never want my kiddo to be in those same shoes. I definitely want to give him a great head start!