Can You Add a Minor to a Credit Card?

Adding a minor to a credit card account is possible but involves specific considerations for both the primary cardholder and the minor. Understanding the authorized user relationship and its implications is important before proceeding.

Authorized User Basics for Minors

An authorized user is an individual permitted by the primary cardholder to make purchases using their credit card account. However, the authorized user holds no legal responsibility for the debt incurred. The primary cardholder remains solely accountable for all charges made, including those by the authorized user, and for ensuring timely payments.

Credit card issuers establish varying age requirements for authorized users. Some issuers may set a minimum age, while others do not specify any. Regardless of the minor’s age, the primary cardholder retains full financial responsibility for the account’s balance.

The primary cardholder maintains complete control over the account, including the ability to set spending limits for authorized users if offered. This oversight can be a valuable tool for managing a minor’s spending and teaching financial habits. Authorized users do not possess the same account management privileges as the primary cardholder, such as redeeming rewards or requesting credit limit increases.

Steps to Add a Minor to a Credit Card

Adding a minor as an authorized user involves a process initiated by the primary cardholder. This typically includes contacting the credit card issuer via phone, online banking portal, or mobile application. Some issuers may also allow requests via mail. The primary cardholder will need to provide specific identifying information for the minor.

This information generally includes the minor’s full legal name and date of birth. Some credit card issuers may request the minor’s Social Security Number (SSN) for identification and reporting purposes, but it is not universally required. Specific issuer policies vary regarding SSN requirements for authorized users.

Once the necessary information is submitted and the request is processed, the issuer typically mails a new credit card with the minor’s name embossed on it. This card is usually sent to the primary cardholder’s address on file. The time it takes to receive the card can vary, but it is generally within a few business days to a couple of weeks. Some premium rewards credit cards might charge a fee for adding authorized users, which can range from no cost to upwards of $75 or more per authorized user.

Credit Reporting for Minor Authorized Users

The impact of being an authorized user on a minor’s credit report depends significantly on the specific policies of the credit card issuer. Many major credit card issuers report authorized user activity to the three nationwide credit bureaus: Equifax, Experian, and TransUnion. However, it is not mandatory for issuers to report this information, and some may choose not to do so. If the account activity is reported, the minor’s credit report will generally reflect the payment history and credit utilization of the primary account.

This means that consistent on-time payments and a low credit utilization rate on the primary account can positively influence the minor’s credit profile. Conversely, late payments or high balances on the primary account could negatively affect the minor’s credit report. It is important to note that while authorized user status can help establish a credit history, it is not the same as building an independent credit history as a primary cardholder.

Some card issuers may allow a minor to be added as an authorized user but might not report their account activity to credit bureaus until the minor reaches a certain age, such as 18. Therefore, primary cardholders should confirm the issuer’s reporting policies directly to understand how and when the authorized user’s activity will appear on their credit report. The account’s history, including its age, can be added to the minor’s credit file, potentially providing a longer credit history once reported.