Becoming an authorized user is the only way to get credit cards for minors in order to establish credit. Once an authorized user is no longer a minor, they can add their own credit card account to the mix.
How old can a teenager get a credit card?18 Teens can apply for their own credit cards when they turn 18. The best credit cards for teens have low credit requirements and keep costs to a minimum. You can help teens under 18 build credit by adding them as an authorized user on one of your credit cards.
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This post contains links to products fromand we may be compensated when you click on these links. Our recommendations and advice are ours alone, and have not been reviewed by any issuers listed. Terms apply to offers listed on this page. As parents, we want our children to have the best possible start in life — from getting good grades and excelling at sports and activities, to learning responsibility by holding a part-time job.
Some go even further to set their children up for saving and investing by for How can a minor get a credit card?, like a or a. There's another easy step you can take to give your kids a financial edge: Adding a child to your credit card as an authorized user may and score by piggybacking on yours. Then, once they reach adulthood, they'll have a better shot at getting approved for lucrative and other forms of credit like loans or mortgages.
That said, adding your child as a credit card authorized user isn't without risk. Here's how to decide if How can a minor get a credit card? strategy is a good fit for your family. Should you add your child as a credit card authorized user? Minors under the age of 18 cannot open their own credit cards by law or get approved for other forms of creditso adding children as authorized users is a simple workaround many parents use to give their kids access to the convenience and benefits of a credit card.
An authorized user receives their own card, with their name on it — but it's tied to the primary cardholder's account. Adding a child as an authorized user can build their credit Once a child is no longer a minor, they're eligible to apply for their own cards — but that doesn't mean they'll get approved.
Without a credit history or score, most are out of reach, even if the child has an income. While some issuers offer that don't require lengthy credit history, they often come with fewer rewards and lower spending limits. Quick tip: Some banks, like Chase and Citi, don't ask for an authorized user's Social Security Number. However, credit bureaus can still match up the user's date of birth and address with a credit file.
When you add your child or anyone as an authorized user, most major issuers will report the credit card account to the — then the account, and its history, will usually reflect on the user's credit file. However, some issuers won't report until the child reaches a certain age, and bureaus have varying policies on when they will include authorized user accounts on a report.
In general, as long as your own and account history are positive, adding your children as authorized users may give them a much-needed boost when they're legally able to apply for credit. But bear in mind that any changes they make are your responsibility, and any changes — positive or negative — to your account could impact your authorized users, too.
One of the is the average age of accounts, so a card you've had open for years would carry more weight than one you've recently opened. Minimum age for credit card authorized users The major credit card issuers allow you to add minors as authorized users, but several have minimum age limits.
Most big banks will report authorized user accounts to the main credit bureaus, including the issuers listed below. Benefits of adding a child as an authorized user Along with potentially giving your child a head start on building credit, adding them as a credit card authorized user has other benefits. Credit cards can teach financial responsibility Having an authorized user credit card can help show young adults. You'll earn rewards for their spending Here's a bonus for parents: The charges your authorized users make will show up in your primary account, and any rewards earned from their spending go to you, as well.
This is particularly helpful if you're or working toward for a new credit card welcome bonus. Access to funds in an emergency Older children may find themselves in situations where they don't have the cash on hand to cover an urgent or unexpected expense — for example, if your teen's car breaks down and you're not nearby to help.
Having a credit card in their own name can be handy, especially in cases where a merchant won't take a parent's credit card number over the phone. Travel perks and purchase protection A number of cards offer authorized users some of the same perks as primary cardholders, although it's not always free. For example, it doesn't cost anything extra to add someone to your Chase Sapphire Preferred® Card account, and authorized users receive the same travel insurance and purchase protections when they use their card.
That's because, in addition to getting the same travel and as the primary cardholder, each authorized user receives their own. This can be well worth the expense for older children who travel alone, or for large families who want airport lounge access — because the Priority Pass membership from the Chase Sapphire Reserve® only allows two guests. Risks of adding a child as an authorized user Adding your child as an authorized user to How can a minor get a credit How can a minor get a credit card?
their credit history a boost is not without pitfalls. If you plan to actually let the child use the card, it's important to establish guidelines about when they can use it and how much they're allowed to spend. Some kids are more responsible than others — and you know your child best. Charges they make are your responsibility Kids don't How can a minor get a credit card?
How young is too young for a kid to have a credit card?
make good choices, especially if they're tempted by a shiny new gadget or want to keep up with their friends.
Even if you've set clear rules about spending on an authorized user card, it's possible your child could slip up and rack up charges neither of you can afford. You can't go back and with the credit card issuer, either — authorized user spending is still your responsibility.
So be sure to keep a close eye on your child's spending and reinforce the limits you've set and if you don't trust your kid to stick to the rules, consider putting the card away unless it's for a specific, supervised purchase. Your credit score could suffer Whether your child spent with your permission or not, if you have to. Balances you owe, as well as increases in your total utilization the amount you owe compared to your credit limitswill cause your credit score to drop.
Some banks, likeallow you to set spending limits for additional cardholders — without affecting your own credit limit. So before you send your teen to the mall with their pals, it's not a bad idea to put a cap on what they can charge if your issuer allows it.
If you're faced with this situation, you may want to remove your children as authorized users to prevent any damage to their credit file. Jasmin Baron is an associate editor at Personal Finance Insider, where she helps readers maximize rewards and find the best credit cards to fit their lifestyles.
Featured credit cards from our partners Jasmin Baron is an editor at Insider, responsible for credit card coverage on Personal Finance Insider. Before joining the Insider team, she was a senior editor at The Points Guy and Million Mile Secrets, covering credit cards, points and miles, and loyalty programs. Her expertise in maximizing travel rewards grew from over two decades of experience in the aviation industry, including 18 years working as a pilot and flight instructor in her native Canada.
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