How to Add a Child as an Authorized User on a Credit Card

Adding a child as an authorized user on a credit card can be a valuable step in their financial education. This practice allows a child to gain experience with credit under the guidance of a primary cardholder. While the specific benefits and practicalities vary by issuer, this article provides a comprehensive guide to understanding the authorized user role and the steps involved in adding a child to a credit card account.

Understanding the Authorized User Role

An authorized user is an individual granted permission to use a primary cardholder’s credit card account. They receive a card, often bearing their own name, which is linked to the primary account. The authorized user does not hold legal responsibility for any debt incurred on the account; the primary cardholder remains responsible for all charges and for ensuring timely payments.

Being an authorized user can significantly influence a child’s credit history. When the primary account is managed responsibly with consistent on-time payments and low credit utilization, this positive activity may be reported to major credit bureaus and appear on the authorized user’s credit report. This can help them establish or improve their credit score, providing a foundation for future financial endeavors, such as applying for their own loans or credit. However, if the primary account experiences late payments or high debt, this negative activity could also impact the authorized user’s credit profile.

Authorized users typically have limited control over the account. They can make purchases with the card, but they cannot perform actions such as increasing the credit limit, closing the account, or adding other authorized users. Some credit card issuers may offer the primary cardholder the ability to set spending limits for authorized users.

Preparing to Add an Authorized User

Before adding a child as an authorized user, the primary cardholder should gather information about the child. Credit card issuers typically require the child’s full legal name, date of birth, and current address. A Social Security Number (SSN) is often requested for credit reporting purposes, allowing the account’s history to appear on the child’s credit report.

It is prudent for the primary cardholder to review their credit card issuer’s policies regarding authorized users. Some issuers have minimum age requirements, which can range from as low as 13 years old. Understanding these age restrictions and any potential fees for adding an authorized user is an important preparatory step.

Engaging in a clear discussion with the child about financial expectations and responsibilities is advisable. This conversation should cover how the card is to be used, spending limits, and the understanding that all charges are the primary cardholder’s legal responsibility. Establishing ground rules and educating the child on responsible spending habits and the implications of credit use can foster financial literacy.

Adding an Authorized User

Once all necessary information has been gathered and discussions held, the process of adding an authorized user can begin. Most credit card issuers provide several methods for this action. The most common approach is through the issuer’s online banking portal or mobile application.

To add an authorized user online, the primary cardholder typically logs into their account, navigates to an “account management” or “add authorized user” section, and then enters the previously prepared details for the child. This digital process often involves a secure form where the child’s name, date of birth, and Social Security Number are inputted. Some online systems may also require identity verification steps for the primary cardholder.

Alternatively, adding an authorized user can be done by phone. The primary cardholder can call the customer service number located on the back of their credit card. During the call, the representative will guide them through the process, requesting the child’s information and confirming the primary cardholder’s authorization.

After submitting the request, the credit card issuer will mail a new card in the authorized user’s name. This card is usually sent to the primary cardholder’s address on file. Delivery times range from 7 to 10 business days. Upon receipt, the new card may require activation, which can be completed by phone or through the issuer’s online platform.