Should You Add a Child to Your Credit Card?
Posted by Angela McKenzie on Monday, August 7, 2023 at 12:52 PM
By Angela McKenzie / August 7, 2023
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One of the easiest ways to help your children build credit history while learning about credit cards is by adding them as authorized users. When you add a child as an authorized user, it reports as a new account on your child’s credit report, and the account history and details will affect their report. Just remember this goes both ways: Good credit card activity and payment history can benefit your child's credit report; bad activity, such as a high utilization ratio, can harm it.
Whether or not you allow your child to have a copy of your card and use it is a separate decision, but it can be a good tool for teaching younger children money management and can be emergency funds for older kids who live away from home.
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