Parents are increasingly adding children as authorized users on credit cards to help establish their credit history early.Some credit cards allow authorized users as young as 13, while others have no minimum age requirement.This strategy can boost a child’s credit score over time, but there are important considerations.Certain credit card companies charge fees for adding authorized users, which could make the decision less cost-effective.If parents fail to pay the credit card on time, it can harm both their credit and their child’s.Additionally, when children are removed from the account later, their credit score may temporarily drop.To minimize this, experts suggest waiting until the child has their own credit card before removing them as an authorized user.
Parents are increasingly adding children as authorized users on credit cards to help establish their credit history early.
Some credit cards allow authorized users as young as 13, while others have no minimum age requirement.
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This strategy can boost a child’s credit score over time, but there are important considerations.
Certain credit card companies charge fees for adding authorized users, which could make the decision less cost-effective.
If parents fail to pay the credit card on time, it can harm both their credit and their child’s.
Additionally, when children are removed from the account later, their credit score may temporarily drop.
To minimize this, experts suggest waiting until the child has their own credit card before removing them as an authorized user.
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