Should I Check My Child’s Credit Report?

Parents often check their child’s credit report due to concerns about potential identity theft. While rare, a minor’s credit report almost always signals a need for investigation and protective action.

The Uncommon Nature of a Child’s Credit Report

Credit reports are usually generated when an individual engages in credit activity, such as applying for loans, credit cards, or other financial services. Minors generally lack this type of financial engagement, so they don’t accumulate a credit history. Therefore, a child’s own credit file is an anomaly.

It is important to distinguish between a child’s own credit file and being an authorized user on a parent’s credit card account. Adding a child as an authorized user can occasionally create a credit report for the minor, but this is typically a benign way to help them build credit later and does not usually indicate identity theft.

However, if a credit report exists for a child who has never been an authorized user or engaged in any financial activity, it is a significant indicator that their personal information, such as their Social Security number, may have been compromised.

How to Determine if a Credit Report Exists for a Minor

Determining if a minor has a credit report requires a specific process, distinct from an adult’s. Parents must submit a written request to each of the three major credit bureaus: Equifax, Experian, and TransUnion. This search identifies if a file was inadvertently or fraudulently created under the child’s name or Social Security number.

For these requests, parents must gather several specific documents:
Parent’s government-issued identification (e.g., driver’s license).
Proof of parent’s current address (e.g., utility bill, bank statement).
Child’s birth certificate.
Child’s Social Security card.
Documentation proving parent-child relationship (e.g., birth certificate listing parent, legal guardianship documents).

Each bureau may have different forms or mailing addresses for these requests; check their websites for current instructions. The bureaus will then notify the parent if a file is found or if no credit file exists for the minor.

Actions to Take When a Child’s Credit Report Shows Activity

If a child’s credit report shows activity, especially fraudulent accounts, immediate action is needed. First, dispute these fraudulent accounts directly with each credit bureau. Provide detailed information, including account numbers, dates, and supporting documentation.

Following the dispute, placing a credit freeze on the child’s credit file is a protective measure. This freeze restricts access to the credit report, making it significantly harder for identity thieves to open new accounts in the child’s name.

A credit freeze for a minor is often referred to as a “protected consumer freeze” and typically remains in place until the parent requests its removal or the child reaches a certain age, often 16 or 18, when they can manage it themselves.

Reporting identity theft to relevant authorities is important. File a report with the Federal Trade Commission (FTC) through IdentityTheft.gov for a recovery plan and official report. Also, file a police report with local law enforcement, as this can be crucial for further disputes and legal processes.

Proactive Measures to Protect a Child’s Financial Identity

Even if no current issues are identified, parents can implement several proactive measures to safeguard their child’s financial identity.

Securely store sensitive documents, such as birth certificates and Social Security cards, in a safe place. This reduces the risk of these crucial pieces of information falling into the wrong hands.

Parents should also exercise caution regarding the sharing of their child’s personal information, especially online or in response to unsolicited requests. Limiting the exposure of details like full names, birthdates, and Social Security numbers can significantly mitigate identity theft risks.

A child credit freeze can be placed with each credit bureau to prevent a credit file from being opened for the child. This protective freeze helps ensure that no credit activity can occur until the child reaches adulthood and the freeze is lifted.

Regularly monitoring mail for any suspicious financial documents or credit offers addressed to the child can also serve as an early warning system for potential identity theft.