Can You Get a Credit Card for Your Child?

Parents often consider obtaining a credit card for a child to cultivate financial responsibility or provide for unexpected situations. Understanding the available options is important, as various factors determine how a child can access credit.

Eligibility and Available Options

In the United States, an individual must be at least 18 years old to enter a legal contract, including a credit card agreement. The Credit CARD Act of 2009 requires those under 21 to demonstrate independent income or have a co-signer for their own credit card. However, parents have alternative methods to provide a child with credit access before these age requirements.

One primary method involves adding a child as an “authorized user” to an existing credit card account. The child receives a card linked to the parent’s account and can make purchases, but the parent remains solely responsible for all charges and payments. Many credit card issuers allow authorized users as young as 13, and some have no minimum age, though policies vary by issuer. This option does not involve the child entering a direct credit agreement with the issuer.

Another less common option is a “joint account,” where both the parent and the child are equally responsible for the debt. While increasingly rare, they involve shared legal liability for all transactions. For minors, opening a joint account usually requires the parent to be a co-signer, as the child cannot independently enter such a contract. This arrangement means both parties’ credit histories are directly affected by the account’s activity.

Choosing an Account Type

When considering an authorized user setup, parents retain significant control over the account. They can set spending limits for the authorized user and monitor all transactions, providing a structured environment for the child to learn. The primary cardholder is solely liable for any debt incurred, offering financial protection for the child. Removing an authorized user from an account is a straightforward process if circumstances change.

Conversely, a joint account implies shared ownership and equal legal responsibility for the debt. This means both the parent and the child, once they reach the age of majority, are fully liable for the balance, and negative activity impacts both credit profiles directly. Joint accounts offer less parental control over the child’s financial liability compared to an authorized user setup. Deciding between these options depends on the parent’s goals, such as teaching basic spending habits under supervision or fostering shared financial accountability.

Impact on Credit Profiles

Having a credit card can influence a child’s credit profile. When a child is added, the account’s payment history and credit utilization may be reported to credit bureaus under the child’s name, helping them establish a credit history early. This can be beneficial if the primary account is managed responsibly, with on-time payments and low credit utilization. However, if the primary account experiences late payments or high debt, this negative activity can also appear on the authorized user’s credit report, harming their emerging credit score.

Joint accounts directly impact both the parent’s and the child’s credit reports. Every transaction and payment behavior is reflected on both individuals’ credit histories. Consistent on-time payments and prudent credit utilization can contribute positively to both parties’ credit scores. Conversely, any missed payments or high balances will negatively affect both credit profiles, emphasizing mutual financial discipline.

Responsible Card Management

Once a credit card is obtained for a child, responsible management is important for financial protection and education. Parents can implement spending limits on authorized user cards, if allowed, and regularly review transaction statements together. This helps children understand spending patterns and budgeting.

Educating children about financial concepts, like interest accrual and timely payments, is important. Parents should explain that a credit card is a borrowing tool, not free money, and discuss debt consequences. Consistent communication about financial decisions and the purpose of credit reinforces these lessons. This dialogue helps prepare children for independent financial management when they obtain their own accounts.