Can I Add My 13-Year-Old to My Credit Card?

It is common for parents to consider adding their children to a credit card account as a way to manage expenses or introduce them to financial concepts. While generally possible, this decision involves important considerations for both the parent and the child.

Adding a 13-Year-Old as an Authorized User

Many credit card issuers allow the primary account holder to add authorized users under 18. Some issuers have a minimum age requirement, often as low as 13, while others do not specify one.

The process for adding an authorized user is straightforward, often completed by contacting customer service or logging into the online portal. You will need to provide the authorized user’s full name, date of birth, and sometimes their address. Some issuers might also request a Social Security number. Once approved, a card may be issued in the authorized user’s name, often mailed to the primary cardholder’s address.

Parental Liability and Account Management

As the primary cardholder, you retain full legal responsibility for all account charges, including those made by any authorized user. This means you are solely responsible for ensuring purchases are paid. The authorized user is not legally obligated to pay the debt.

Account financial behavior impacts your credit score, both positively and negatively. Consistent on-time payments and low credit utilization can benefit your credit, but missed payments or high balances due to authorized user spending can negatively affect your score. To manage spending, parents can monitor statements regularly and discuss boundaries with their teen. Some issuers may also allow you to set spending limits for authorized users.

Benefits for Your Teen

Adding a teenager as an authorized user offers several advantages for their financial development. This arrangement can help a teen build a credit history if the issuer reports authorized user activity to credit bureaus. A positive payment history on your account can contribute to their credit report, giving them a head start for future credit applications.

This also provides an opportunity for teens to learn about financial responsibility. Under your guidance, they can gain experience with budgeting, understanding credit use, and managing spending within limits. A credit card can also be beneficial for emergencies, providing a convenient payment method.

Alternative Financial Tools for Teens

Beyond authorized user credit cards, other financial tools can help teens learn money management. Prepaid debit cards are one option, allowing funds to be loaded and used for purchases without incurring debt. These cards are not linked to a bank account, and spending is limited to the loaded amount.

Another alternative is a standard debit card linked to a checking account. Many banks offer teen or student checking accounts that require a parent or guardian as a co-signer, available for teens as young as 13 or 14. These accounts teach teens how to manage their own funds, track spending, and use banking services. For older teens, aged 18 and above, secured credit cards can be an independent way to build credit. These cards require a security deposit, which becomes the credit limit, and their responsible use is reported to credit bureaus.