Thoughts on adding kids as authorized users...

[zerbherb]

did nothing for me. I was on only one of my dads crappy cards. Now i have csp at 21 years old . Do it if its a solid card that has solid usage and pay in full that will truly help them.

[creditFiend]

I added my 15 yr old son to my Amex & CSP. He's now turning 17 this May. He mainly uses the PRG for his gas & other things. He gets allowance from me & his Dad (DH). He also gets $$ from both grandparents for staying on the honor roll.
Since Amex gives the AU their own card #, he is able to pay what he's spent from his CapOne money account via his iPhone.
Like others have said, it depends on the child, & how soon you speak to them on credit & finances.
Had my parents done the same for me, I would've never messed up my credit at 18.

[MyLoFICO]

If the parent has 5 credit cards and adds the child as an AU to one of them, the only card that gets reported to the childs credit is the one they are an AU on, correct? And as long as that 1 card is current the childs CR won't be effected if the parent goes default on their other cards, correct?

[creditFiend]

@MyLoFICO this is correct. The two cards I added my son to are always PIF by the due date. Sometimes I let a balance report for CSP for reporting purposes with the bureaus but I immediately pay after statement cuts. If I became in a financial bind, I would definitely remove him to avoid ruining his credit.
In the situation you mentioned, no the child's credit will not suffer from the defaulted parent's card he/she is not listed as AU.
Hope this answers your question☺

[MyLoFICO]

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@creditFiend wrote:
@MyLoFICO this is correct. The two cards I added my son to are always PIF by the due date. Sometimes I let a balance report for CSP for reporting purposes with the bureaus but I immediately pay after statement cuts. If I became in a financial bind, I would definitely remove him to avoid ruining his credit.
In the situation you mentioned, no the child's credit will not suffer from the defaulted parent's card he/she is not listed as AU.
Hope this answers your question☺

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Yes it does, thanks! And if I remove her as an AU they swill stop reporting to her CR, correct? Even if I default? 

[Anonymous]

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@Anonymous wrote:

I am thankful my parents taught me the concept of personal finance including the wise use of credit. I think it is a great idea to add her as an AU to get her credit report started; however, I think it is even more important to teach her how credit works and the impact her credit decisions will have on her.

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+1000.

The teachings of good credit are a whole lot more important, as this only sets your child up for success.

A good credit score doesn't take a whole lot of effort when you're starting from scratch.

I am a perfect example, moved to this country on my own just over 2 years ago, got my first secured credit card a month later, now look at my bio.

[Appleman]

We got our kids the USAA debit type visa card. I can easily put their allowance on the card and they are both pretty good with managing the card balance. We have a saver and a spender and both at least stop and think before making a purchase. In fact vacations have been less stressful since we started giving the girls a budget and putting a set amount on their card. Usually by the end of vacation the saver has money left over while the spender has well, spent.

 Now that the older one is driving I have her as an authorized user on one of my credit cards. I think talking openly with the kids has been beneficial, sharing both the good and the bad. I would rather they learn from my mistakes and manage their credit well from the start. A lesson like many here was learned the hard way.

[Anonymous]

Well, you don't need to give her the actual cards. She does leech off of your credit in the older FICO models. If you wanted something reporting for her, maybe you can get her a secured loan for something. I mean if she's getting a bike, laptop, tablet, etc, that might be a good way to build up her credit.  Most credit unions can setup something like that. I have a $1000 secured loan of cash for 'other' purposes. The cash just sits in my savings account.  It's purely to have it report.

I'm really leery of children having credit cards though pretty soon she can get one herself. Just spend some time teaching her about personal finance.  She'll use that all of her life.  

http://www.amazon.com/The-Wealthy-Barber-Updated-Edition/dp/0761513116

I'd give her that and get her to read it and talk about it with her.  Our schools really don't do a good job of teaching either logic or personal finance.

[Anonymous]

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@Anonymous wrote:

I added my 15 year old as an authorized user to several of my credit cards.  I am NOT giving her any cards, that would be stupid, but I want these to report to the credit bureau's so when she turns 18 she will have positive lines of credit reporting for her.  I have read differing opinions on whether or not they will actually report or not, but I thought it would be worth a shot.  Opinions?

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Think about it m. You adding her and not let her learn the concept of having a credit card with an actual credit card for use to understand concept of use and pay. U building up her credit for when she's 18. No card to use. At 18 she applies for cards and get starting limit of 2 5 10 15k and never know how credit card works. She goes out max it all out. Thanks u just helped her with her first bankruptcy 

[zerbherb]

My dad put me on his worse card. Low limit. 2 years later since I got my first card. 19k of credit to my name high 700s. He taught me what not to do. More then what to do.