My son turned 18 on 25 May 2024. The months before his birthday, I added him as an authorized user on every credit card I have with good usage ratios. I also mailed a photocopy of his social security card to all three bureaus indicating his full name, date of birth, current address, and (of course) the SSN. On the 27th, I took him to shop for a car. He had no credit profile. I also got something back from Experían saying that they couldn't find his report in their system (kind of a dumb answer if you ask me).
Is it because he was under 18 that none of the credit loaded onto his profile? I added him on three of my wife's accounts yesterday. Is he going to end up with some kind of a profile soon?
I would look into a secured credit card from the bank or credit union you and your son already do business with to start off building some positive payment history.
He needs to make a few months of on time payments on an account that he is solely responsible for to generate a fico score.
Being added as an AU on your parents cards used to be a shortcut to a good score but the newer fico scoring models largely ignore authorized users on other peoples cards.
@FicoMike0 wrote:I would agree that his having his own account is the best way to start his credit history. If he has a bank account that's a good starting place. There are also several student cards available, I don't think they all even require you to be in school. Either might avoid going secured.
Didn't think of that, but yeah, student cards are an another option that caters to those with little to no credit history.
@Thomas_Thumb wrote:I believe there needs to be an open, active account on your son's CRA report with atleast 6 months history to generate a Fico credit score. Some issuers list account open date as date when the AU was initiated. The AU cards may not instantly report to the CRAs. CC issuers usually report on a monthly basis shortly after a statement close date.
You need credit info reported to have a credit file.
Can confirm. My son was an AU on a few of my cards for a couple years before he turned 18. He didn't have a credit report after he turned 18 until he opened his own account.
All right, so there have been some answers, but I must say that I don't consider any of them satisfactory.
Possible answer: You need six months' worth of credit history to make a FICO score.
Yes, fine. But, that doesn't explain no credit profile at all.
Possible answer: Maybe the statement date hasn't come and gone.
Yes, but I've been working on this for 2-3 months. Surely at least one statement date has come and gone.
Possible answer: You should get him a student credit card.
No. He's not a student.
Possible answer: Authorized users don't count for calculating a score.
False, but even if it were true, it wouldn't explain no credit profile. In reality, by law, a spouse has the right under the ECOA to the credit of his/her partner. Since the FICO algorithm cannot determine whether the authorized user is the spouse, the authorized user does count. And even if it did have some limited ability to distinguish whether someone was a spouse, the fact that we have the same last name and the same address would probably make it impossible for the algorithm to determine.
Possible answer: Get a secured credit card.
Why is that better than, let's say, using Kickoff Credit Builder or getting a Fingerhut card or signing up with Cred.ai?
At any rate, I added my son on three of my wife's credit cards (now that he's 18), and one of them has a statement date of 6/6/2024, so we'll see what happens.
@Zosimus wrote:All right, so there have been some answers, but I must say that I don't consider any of them satisfactory.
Possible answer: You need six months' worth of credit history to make a FICO score.
Yes, fine. But, that doesn't explain no credit profile at all. It does if he's only been listed as an AU for 3 months. Also, many Fico scoring models ignore many attributes of AU accounts. This was the reason it was suggested he get his own card. A revolver, from a major lender, no store cards or sub-prime lenders
Possible answer: Maybe the statement date hasn't come and gone.
Yes, but I've been working on this for 2-3 months. Surely at least one statement date has come and gone. As mentioned, it generally takes around 6 months to generate a Fico score
Possible answer: You should get him a student credit card.
No. He's not a student. Fair enough, but not all student cards are strictly for students, they're meant to be for students (or young people) trying to establish their own credit history.
Possible answer: Authorized users don't count for calculating a score.
False, but even if it were true, it wouldn't explain no credit profile. In reality, by law, a spouse has the right under the ECOA to the credit of his/her partner. Since the FICO algorithm cannot determine whether the authorized user is the spouse, the authorized user does count. And even if it did have some limited ability to distinguish whether someone was a spouse, the fact that we have the same last name and the same address would probably make it impossible for the algorithm to determine. The ECOA doesn't grant the right to a credit score, or credit profile. It was established to prevent discrimination on the basis of race, color, religion, national origin, sex, marital status, age, receipt of public assistance, or good faith exercise of any rights under the Consumer Credit Protection Act.
Possible answer: Get a secured credit card.
Why is that better than, let's say, using Kickoff Credit Builder or getting a Fingerhut card or signing up with Cred.ai? A secured card from a major bank, or CU is better than any sub-prime option. Especially when you consider that often they'll come with a increase in credit limit when they graduate.
At any rate, I added my son on three of my wife's credit cards (now that he's 18), and one of them has a statement date of 6/6/2024, so we'll see what happens.
