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If you want to give your teenager a head start on their financial future, adding them to your credit card account is one of the simplest things you can do. It takes just a few minutes, costs nothing, and can help them build a solid credit history before they even need a card of their own.
Here’s how it works, when you should get started, and how to do it the smart way.
How it works
Most major credit card issuers let you add a teenager as an authorized user. They get their own card with their name on it, but it’s tied to your account. They can make purchases just like you can, and any rewards they earn will go to your account. You’re responsible for all charges, and your account activity also shows up on their credit report.
That last part is the real benefit.
Why it’s worth doing
It takes years to build an excellent credit score. By adding your teenager to your account now, you give them a running start. By the time they’re 18 and applying for their first card, apartment, or car loan, they could already have years of positive credit history working in their favor.
They also learn how credit cards work in a low-stakes environment, with you as a safety net. That’s a lot better than handing them their own card at 18 with no experience and no guardrails.
What age can you start?
This depends on the issuer. Some have no minimum age, while others have minimum ages ranging from 13 to 18.
As for when you’re ready, that’s a parenting call more than a financial one. Some families start around 13 to 16, tying it to a milestone like starting high school or getting a part-time job. The key is that your teenager understands what a credit card is and how to use one responsibly.
Precautions worth taking
You want to have some control and oversight over your kid’s spending. So here are a few things you can do:
- Set a spending limit. Many issuers let you cap how much an authorized user can spend, separate from your own limit.
- Hold onto the card except when your kid needs it. Some parents add their teenager as an authorized user but only hand over the card as needed. Their kid’s credit history will still grow either way.
- Monitor spending together. Go over statements together each month so your teenager sees what was charged, what it costs, and how interest works if a balance isn’t paid.
- Choose the right card. You probably don’t want to add your teenager to a card with a high credit limit and no controls. A card with solid rewards but manageable limits is a better fit.
Your teenager will want their own card eventually
Being an authorized user helps young people build credit history, but you don’t want them relying on you forever. When your teenager turns 18, they’ll want to open a card in their own name. The authorized user years only lay the groundwork.
Another thing to remember: If you carry high balances or miss payments, that can hurt your teenager’s credit, just as it hurts yours. Your account activity — good and bad — flows to their report, too.
Set your teenager up for success
Too many young adults get their first credit card right after high school, with no experience managing debt or paying their own bills. That makes them more likely to rack up debt and hurt their credit scores.
A kid who has used a credit card for years, with the guidance of their parents, will understand the dangers and the benefits of credit cards. Plus, with a solid credit history built up, they’ll qualify for the best credit cards, apartments, and loan rates.
Bonus tip: Share your rewards with them
Responsible behavior deserves a reward. If your teenager is sticking to a budget, going over statements with you, paying their share of the bills, etc., then think about giving them a share of your credit card rewards.
If you have a travel card, let them help pick a trip to book with points. If it’s a cash back card, let them buy something with rewards a few times a year. Positive reinforcement works.
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