...uh, add my 5yr old as an authorized user?

[Anonymous]

Went to the credit union this past Saturday with my 5yr old son in tow.  Created a custodial bank account for him with the contents of his piggy bank ($90).  Plan to dump a piggie into the account every year (until 18th birthday) as well as put in about $20 per month myself.  The goal is to have about $10,000 by the time he's 18 for him to start a little "business" or pay for his own used vehicle, college stuff, etc.

The time in the bank got me thinking about the following: get a $500 secured card from the credit union (interest-bearing deposit, no closing due to inactivity), put him on it as an authorized user, and then sock drawer it (forever).  The thinking is to build a credit history for him so that when he's 18 he'll be able to benefit from it.  (Maybe I'll stir the card once a year or so with a single xmas gift for him just to show activity of some kind...)

Is there any benefit to starting him as an authorized user now, rather than just adding him when he's 18?  Like, a deeper, more tangible history from actually adding him for years, rather than just waiting till later...?

------plan-----

5yrs old, credit union custodial savings account

5 yrs old, authorized user of $500 credit union savings secured card (sock drawered card - for eternity...)

When 18, apply for his own savings secured card from credit union (card in his possession)

When 18.5, apply for $500 savings secured loan (for his "business") from credit union, transfer funds to my account and autopay it back (he does not have access to funds)

[Indycoltsfan]

There is a minimum age to be an AU - some cards are 15, others are 18.  You may want to check with your CU.  

[Callandra]

^Agreed -- I would check with your CU on the age requirements for an AU and also how long the card can be inactive and they close it/refund the money. You could just add him to one of your other cards; you don't necessarily need to open a new card and add him to that as an AU but again, you might want to check to see the age requirements. 

[vanillabean]

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@Anonymous wrote:

Is there any benefit to starting him as an authorized user now, rather than just adding him when he's 18?

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No.

[Anonymous]

I recently added my twins to a couple of my cards (they are 10), however it was to allow them to have a means to pay for things while skiing while still having the protections of a credit card. I have also used it to help introduce them to the world of credit and start to teach them how things work, like bills and paychecks and such.

My Visa's, MC's and Discover did not have a minimum age, however Amex does so they could not be added to those cards. They each have two cards in their names. However had there not been the need for them to pay for things without me around I doubt I would have worried about it till they actually had a need.

[jason86423]

Capital One was my go to for this. I added them to my account as Au's when one was 6 and the other was 4

[Anonymous]

YES!  Absolutely add your son as an AU for your cards.  Add him to as many cards as you can.  When he's eligible to be added to more cards, add him to those cards as well.

By the time he turns 18, his AAoA will be better than most 25 year olds.  If he gets into credit cards as a hobby, he'll already have an established credit profile and will be able to add multiple cards without damaging his AAoA.

My father added me as an AU when I was 6, again at 22.  Those two cards are the sole reasons I'm able to have such a great line of cards at my disposal.  You'll be helping him along TREMENDOUSLY, and if he's responsible with his credit he'll thank you for it.

[Anonymous]

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@Anonymous-own-fico wrote:

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@Anonymous wrote:

Is there any benefit to starting him as an authorized user now, rather than just adding him when he's 18?

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No.

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I disagree.  AAoA is a big factor in your overall credit journey.  By building this as an adolescent, you will have a thick file by the time you're ready for your own lines of credit.

[Anonymous]

Hmm you learn something new everyday. Me and the DH were just talking about how we want our children (7 and 3) to be knowledgeable about credit at a young age (teens) so that they have a better start then we had at adulthood. Now that I know this I will be speaking to the banks to see when we can add them on. I will still prob wait until we are fully rebuilt (only 10 months into our credit journey) before they get added to anything. I think this is just another great way to set your children up for success as long as you are responsible (which I believe many of us are).

[vanillabean]

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@Anonymous wrote:

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@Anonymous-own-fico wrote:

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@Anonymous wrote:

Is there any benefit to starting him as an authorized user now, rather than just adding him when he's 18?

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No.

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I disagree.  AAoA is a big factor in your overall credit journey.  By building this as an adolescent, you will have a thick file by the time you're ready for your own lines of credit.

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So you are saying that if the same cards are added when you are near eighteen, your file is thinner?