They're off to a great start! Could have benefited from having a parent like you, or for being interested in being financially responsible early on.
So coming from a 20 year old, I remember getting my disco IT right as I turned 18 bc I really wanted to build credit, however I was in need of an auto loan 6 months after getting my first CC and my credit was next to non-existent. After days of research I was facing a 9.45% interest rate and all attempts of getting family to co-sign had failed I accepted.. I didn't hold on to it long, but my point is that I can defintely understand someone being hesitant of co-signing an 18 year old kid's loan.. that is a giant risk. I personally couldn't justify co-signing anyones loan due to the amount of risk I would be taking on.. call me selfish, but can you give your thought process when you decided to co-sign your kids? I'm assuming you're confident in your kid's being understanding of responsibility.. if you weren't would you still co-sign?
When I did this for my DS, and a close family friend I used CapitalOne's option not to send a card, but still make the user an AU. Both were able to apply for there own account in about 3 months, after I made them an AU. Safer for you, still as effective, perhaps more so for them.
I have done the same. The card arrives and I hold onto it. The AU is simply to help their overall CL. Not let them use the card
i don't want to hijack your thread - but what you're doing for your children is exactly what i want to start doing for my 21 yo son. i'm unclear exactly how adding your children as AU works.
Do they get their own cards with separate numbers? if so - how/if are their cards linked to my account? can i see their spending/payments...
any pointers to other threads or basics on this topic are much appreciated.
Add them as an AU to one or more of your existing cards
when the card arrives, you decide if you want them to have/use it, or you put it in your safe/ drawer
they get the benefit of the CL, which will help their Util if they already have a card of their own
if they don’t get, wait 3 months then have them check scores and apply for their own.
It is all on your account. So if you let them use the cards, you will see every purchase they make
however, the benefits come from making them an AU. They never need to use the cards. That is up to you.