How Parents Can Help Their Children Start to Build Credit

At What Age Can You Start Building Credit as a Child?

One first step for teenagers to build credit involves riding on the coattails of their parents through becoming an authorized user on an existing credit card.

What is Credit?

Credit is the concept of borrowing money to pay for goods or services today with the implicit understanding you will repay it later—usually with interest.

What is a Credit Score?

Your credit score represents a single measure of your overall creditworthiness, though the models used vary.

What Goes into a Credit Score?

1. Timely Payments

2. Credit Utilization Ratio

3. Credit History

4. Credit Diversity (Mix of Credit Lines)

5. New Attempts to Access Credit (Inquiries)

What is the Best Way to Start Credit Building?

For minors, the best way to start building credit comes from adding them as an authorized user to credit cards. 

Should My Child Become an Authorized User on My Credit Card?

You might consider adding your child to an existing retail or major credit card you have as an authorized user. 

What Signs Show My Children Are Ready to Build Credit?

Undoubtedly, no one knows your children better than you—and that means knowing what they can and can’t handle. 

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