Should I add my infant to my credit card?

As a parent, you may have considered adding your child as an authorized user to your credit card. This can be a good way to help your child build credit and teach them about responsible credit card use. However, before adding your child as an authorized user, it’s important to understand the potential risks and benefits.
One potential benefit of adding your child as an authorized user is that it can help him establish credit history at an earlier age. This can be helpful when he eventually applies for his own credit cards, loans, or mortgages. We would recommend not giving your child this card or even informing him until mid-teenager years, at earliest.
However, there are also some potential risks to consider. When you add your child as an authorized user, he is not legally responsible for any charges made on the card. This means that if your child uses the card irresponsibly or makes unauthorized purchases, you will be responsible for paying off the debt. Additionally, if you are not careful, adding your child as an authorized user could potentially damage your own credit score if he uses the card irresponsibly.
Before making a decision, it’s important to have an honest conversation with your child about the responsibilities that come with using a credit card. Make sure he understands the importance of paying off their balance in full each month and avoiding high-interest debt. It’s also important to monitor his use of the card and set clear guidelines for when and how he can use it.
The age of credit makes up about 15% of the child’s credit score. However, it’s important to consider the potential risks and benefits and have an open and honest conversation with your child about the responsibilities that come with using a credit card.

Tags: finance