Child Under 18 as Credit Card Authorized User

[ptatohed]

I had no idea until recently that children under the age of 18 can be AUs on many credit cards.

My oldest is 12 and I wouldn't mind starting his credit establishment now or soon.

Has anyone added their minor children as AUs?

Pros and cons?  Tips?     

Does it truly help to build their credit before they are even 18?  Will they have a FICO score before 18?  

Thanks in advance!  

Saw this:  https://www.experian.com/blogs/ask-experian/when-should-my-child-get-a-credit-card/

[M_Smart007]

@ptatohed,

This is good idea IMO. I did this with my twin DD's.

I added them to older cards with higher limits.

Chase and Citi, as well as an old gas card.

I did add them as AU's on an Old Amex, but they (AENB) do not backdate AU's to when the acct. was open.

This establishes a credit file for them, and they most assuredly would have a FICO score by the time they apply.

I'm guessing they would have a FICO score in about 12 months (I could be wrong on that)

I'll let others chime in, as I am NO expert on this subject.

I remember struggling to get credit in my late teens.

I think Unocal 76 was my first card, then possibly Mervyns, Macy's, Sears.

After that Came ..American Express-> Optima, Green & Gold. ..then Citi and Provident Bank cards.

[Kforce]

Yes, I gave both my daughters an AU card before they were 18.

Why not get a few percent back on that fast food and gasoline?

Don't remember if/when they got a credit score.

I think I did it more so they would stop asking for cash.

It can't hurt and can be good training if you show them what they are spending, etc.

Get back that allowance.   

[Gmood1]

Yes, it works like a charm!

I added my youngest daughter when she was 2 yrs old.

It will be 9 more years before her file activates. But hopefully her credit history will be older than she is. 🤣

I did the same for an 18 yr old nephew, who had zero credit history. His files activated within 90 days, after adding him.

He bought/ financed his first house and vehicle at 19 years old. Just 9 months after making him an AU on several CCs. 

His mortgage scores were in the 800s from the very start. 

[risingup2day]

Personally, teaching my children financial literacy is important. Something my parents did not teach me when I was going up. I have my children as AU on several of my cards. When they wish to buy something, we take about it. We go online check balance (Savings) verify they have the funds to cover the cost of the item they wish to buy. We go make the purchase and when the due date is here, we go and pay the balance. They see my limits and wonder, "Why can't I buy this and that? There is a lot of money here on the cards." We talk about the interest one pays, if we choose to carry a balance, the pro and cons, ETC...

My son had his heart set on buying something that was pretty pricey, an Oculus... we talked about it, but like most young teenagers, there was no talking him out of it. So I wrote up a loan with a flat interest rate of $2 dollars a month numbers looked something like:

$500 for Oculus

flat rate $2 a month

Minimum payment of $23 a month for 24 months

if late, interest will double for 3 months

IE $2 monthly now $4. If late the next month it will go to $8, then $16 and so on. 3 months of on time payments it will go back to $2

I will not remind him of his due date, which was the 5th of every month.

At the end, a rocky start for my son, ended up paying being late twice back to back... I think he ended up paying close to $45 dollars in interest but paid off the "loan" nearly 12 months sooner. For the records the "interest" was given back to him at the end, but I think my young son learned a few valuable lessons. 

By the time, my kids turn of age, they both will have nearly 10 years of being a AU under their belts. 

[ptatohed]

Ok, thanks all for the input.  You sold me!  I added my son as an AU tonight on my citi DC.  Card arrives within 2 weeks.

It never asked for his social so how do I know it will report to his credit file?  

I'm still trying to picture the cashier selling something to a 12 year old with a credit card, lol.    

[Gmood1]

@ptatohed 🤣

They'll do it. My youngest daughter has been carrying her Chase Amazon Prime card since she was allowed to carry a purse(age 3 or 4).

I normally let her use it, when she's out with her adult sisters gallavanting at the malls. She has a strick spending limit, normally reserved for food. She has always adhered to whatever I told her she could spend.

I would add him to at least two more from different lenders if available.

I have her on Chase, Citi, US Bank and Capital one. Citi is slow to report AUs to all CBs from past experiences. 

[OmarGB9]

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@ptatohed wrote:

Ok, thanks all for the input.  You sold me!  I added my son as an AU tonight on my citi DC.  Card arrives within 2 weeks.

It never asked for his social so how do I know it will report to his credit file?  

I'm still trying to picture the cashier selling something to a 12 year old with a credit card, lol.    

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Even if it does report to his credit file, I don't think an actual file would be generated until he's 18.

[Rogue46]

Keep in mind some banks require the AU to be a certain age. I know when I added my 16 yr old to Discover it said the minimum age I believe was 15 and Amex I believe was 13

[ptatohed]

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@Rogue46 wrote:

Keep in mind some banks require the AU to be a certain age. I know when I added my 16 yr old to Discover it said the minimum age I believe was 15 and Amex I believe was 13

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See link in Post #1.