What Age Can You Add Your Child to Your Credit Card?
Guide for parents navigating adding a child to a credit card. Understand the practical steps and financial implications for building responsible habits.
Adding a child as an authorized user to a credit card account allows them to make purchases while the primary cardholder retains full responsibility for the debt. This arrangement can offer practical advantages, such as providing a means for emergencies or managing shared household expenses. Beyond convenience, it also serves as a tool for financial education, offering a structured environment for children to understand credit usage and cultivate responsible spending habits under parental guidance.
Age Requirements for Authorized Users
The minimum age for adding a child as an authorized user varies by credit card issuer. While some issuers have no specific minimum age, many set the requirement between 13 and 16 years old. The federal Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) mandates that individuals under 21 demonstrate independent means of repaying debt to obtain their own credit card. This regulation does not apply to authorized users, as the primary cardholder is legally responsible for all charges. Always consult your credit card provider to determine their precise age requirements.
Information Needed to Add an Authorized User
Before adding a child as an authorized user, the primary cardholder needs to gather specific personal information. This typically includes the child’s full legal name, date of birth, current address, and often a Social Security Number (SSN). Beyond collecting these details, the primary cardholder should decide whether to request a physical card for the authorized user and if the issuer allows for setting specific spending limits. Discussing financial responsibility and establishing clear rules for card usage with the child is also an important preparatory step.
Process for Adding an Authorized User
Once the necessary information is gathered and preliminary decisions are made, the process of adding an authorized user can typically be completed through several convenient methods. Many credit card issuers allow primary cardholders to add an authorized user directly through their online banking portal. This usually involves logging into the account, navigating to a section like “account services” or “manage users,” and then selecting the option to “add authorized user.” The previously collected details about the child will then be entered into the designated fields.
Alternatively, authorized users can often be added by calling the credit card company’s customer service line and providing the required information over the phone. Some issuers may also offer the option to complete and mail a physical form. After submission, the processing time can vary, but a new card for the authorized user, if requested, typically arrives by mail within 7 to 10 business days.
Impact on the Child’s Credit History
Being an authorized user can significantly influence a child’s credit history, as the primary cardholder’s account activity is often reported to credit bureaus for both parties. Positive behaviors, such as consistent on-time payments and low credit utilization, can contribute to building a positive credit history. This early exposure can provide a foundation for their credit profile even before they are eligible for their own credit accounts.
However, not all card issuers report authorized user activity to all major credit bureaus, and some credit scoring models may weigh authorized user accounts differently. Conversely, any negative activity on the primary account, such as missed payments or high balances, can also be reflected on the authorized user’s credit report, potentially harming their emerging credit profile. It is important to understand that an authorized user is not legally responsible for any debt incurred on the account; the primary cardholder maintains sole financial liability.