How to Add a Child to Your Credit Card
Guide your child toward financial literacy by thoughtfully adding them to your credit card. Learn the responsible approach and manage their early credit experience.
Adding a child as an authorized user to your credit card account can be beneficial. This allows your child to use a credit card linked to your existing account. This guide explains the process.
Understanding the Authorized User Role
An authorized user is an individual granted permission by the primary cardholder to make purchases on their credit card account. The legal responsibility for all charges, including those made by the authorized user, remains with the primary cardholder.
Parents often consider this option to help their child develop financial literacy and establish a credit history. Positive payment behavior on the account can contribute to the child’s credit report, helping them build credit early. Before adding a child, assessing their maturity level and discussing clear spending rules ensures responsible use.
Steps to Add a Child
To add a child as an authorized user, you will need to provide information to your credit card issuer. This includes the child’s full legal name, date of birth, and sometimes their Social Security Number (SSN). Some issuers may have minimum age requirements for authorized users, with some allowing individuals as young as 13.
The process for adding an authorized user is managed directly through the credit card issuer. You can find this option within your online banking portal or mobile app. Alternatively, you may contact customer service by calling the number on the back of your credit card. Some issuers may also offer the option to complete and submit a specific form via mail.
When adding online, navigate to the “account services” or “add authorized user” section of your portal. Input your child’s information and confirm. If contacting by phone, have your child’s information available. After submission, a new card with your child’s name will be mailed to your address within 7 to 10 business days.
Managing the Account and Its Impact
After adding your child as an authorized user, ongoing account management is important. Some credit card issuers offer options to set spending limits for authorized users. For example, American Express allows limits as low as $200 on some consumer cards. Even without formal limits, regularly monitoring account activity through online statements or mobile alerts is advisable.
The authorized user status can influence the credit reports of both the primary cardholder and the authorized user. Positive payment history and low credit utilization on the account can help build the child’s credit. Conversely, missed payments or high balances can negatively impact the credit scores of both the primary cardholder and the authorized user.
If needed, removing an authorized user from the account is a straightforward process. The primary cardholder can do this by contacting the credit card issuer via phone or through their online account portal. Once removed, the authorized user’s card will be deactivated, and the account activity will no longer appear on their credit report.