Authorized user

A friend says that if we make our oldest kid an authorized user of our credit card their credit rating benefits from our use of the card. Is that true?

A friend says that if we make our oldest kid an authorized user of our credit card their credit rating benefits from our use of the card. Is that true?

If the credit card company reports information for authorized users to the credit report agencies (not all do), your authorized users will get your history with that card on their credit report. Assuming that you have good credit, that can be a benefit on their credit history. That said - it also results in you being responsible for any charges the authorized users make on the card. And if you want to teach your kids how to use credit responsibly, just signing them up as an authorized user on your card without giving them any experience in actually using cards probably isn’t the most effective way.

AJ

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