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Helping kids get their credit started.

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Established Member

Re: Helping kids get their credit started.

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.

Message 11 of 17
Contributor

Re: Helping kids get their credit started.

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?

Discover IT $9,000 - 09/16
Amex BCE $25,000 - 07/17
Paypal 2% CB $10, 000- 05/19

Message 12 of 17
Valued Contributor

Re: Helping kids get their credit started.

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. 




Cards: Chase Southwest 20k & CSR 17k & CSP 10k & Freedom 6.6k & FNBO 30k Oregon Duck 5k, & AMEX BCP 32.5k & Amex Magnet 15k&amg; Hilton Surpass 7.5k & Delta Gold 12k & Zync NPSL, Fidelity AMEX 17k Commerce5.9k & Cash Forward 7.5k & Sams Club MC 20k, Paypal Extras MC 10k, Paypal Credit 7.25k CapOne Venture 15k, QS 2.5k, QS 750, Amazon 10k, Walmart 10k, Citi Simplicity 18k, Discover IT 23k and a nice stack of store cards.
Marcus Loan. 30k second marcus load 15k.
Message 13 of 17
Established Member

Re: Helping kids get their credit started.

I have all three of my kids as AU on multiple accounts (24, 21 & 18). They were able to get Discover, AMEX and BOA on their own afterward.

AMEX Everyday is a fast grower in the numbers game. The 18 YO was able to get 3x CLI to $25.5k after 61 days. I highly recommend the card.
Message 14 of 17
New Contributor

Re: Helping kids get their credit started.

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

 

July 31/2019. EX-712. EQ-704. TU-726
Message 15 of 17
Established Member

Re: Helping kids get their credit started.

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.

Message 16 of 17
New Contributor

Re: Helping kids get their credit started.

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. 

July 31/2019. EX-712. EQ-704. TU-726
Message 17 of 17
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