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How to Build Credit for Your Kids by Adding Them as an Authorized User

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Adding your child as your authorized user can help build their credit to prepare them for the future while also earning you more rewards.

Have you ever thought, “How do I build my kid’s credit to prepare them for an apartment rental or a loan?” Adding an authorized user to your credit card might be the answer.

What is an authorized user?

An authorized user is someone who's been added to a credit card account by the card's owner, also known as the primary cardholder. The authorized user can make purchases with the credit card as if it were their own. However, the responsibility to pay any charges remains with the primary cardholder.

Adding your child as an authorized user makes them able to use your credit profile as their own. This makes it possible for example, for an 18-year-old to have a credit history of 26 years. They also inherit payment records, credit limits, and can teach your child how to use a credit card. These things can help them if they have no credit or are new to credit have a better credit history.

Potential risks of adding an authorized user

It is important to add an authorized user who you trust to your account. There is a potential risk because you are responsible for the purchases anyone you add to your account makes. There are types of credit cards that allow you to set a lower limit which would be perfect for a younger child. While you must be 18 to get a credit card you can be as young as 13 to be an authorized user. But each credit card company has its own age requirements.

Overall adding your child as your authorized user can help build their credit to prepare them for the future while also learning and earning you more rewards.

The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its subsidiaries and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.