Why YSK: Some banks have no minimum age for authorized users, and report credit usage for them. If you have a credit card you don’t use much, you can add your kids as authorized users, set up a reoccurring payment from the card and an automatic payment to the card, and then forget about it. Your kid could become an adult with an already-maxed credit score.
My parents did this when I was in college, and I used the card to pay for tuition and books. Yes, I was incredibly lucky to have my parents pay for everything.
Because I was an authorized user on my dad’s Amex he had had for decades, my credit history is technically older than I am.
As OP mentioned, this helped my credit score a lot. If you’re able to do this, it’s a huge help down the line.
Also, it’s a double-edged sword. Don’t be adding your kid as an authorized user for convenience and then surprised pikachu when their credit report raises flags for big debt with no income (like my parents did.) An authorized user isn’t just someone who can use the card. Their credit score is affected by any card they’re authorized on.
I believe this is specific to America, or at least it’s not universal. Authorized users’ credit is not affected in Canada.
Great advice…that my parents didn’t know. My credit score is literally absolute shit. F em. I’m done. I’m not a desperate man anymore.
What if you don’t use credit cards at all!?
