How to get a credit card for a child?

While a child under 18 cannot independently open their own credit card account, the most common and effective way to provide them with a credit card is by adding them as an authorized user on your existing credit card account. This allows them to have a card with their name on it, linked to your account, and offers many of the same privileges as the primary cardholder.

Why Children Can't Get Their Own Credit Cards

Credit card companies and banks typically require an individual to be at least 18 years old to legally enter into a contract, including opening a credit card account. This age restriction is in place to ensure that the cardholder has the legal capacity to be held responsible for debt. Therefore, it's not possible to open a new credit card account directly in a child's name.

The Authorized User Solution

Adding your child as an authorized user on your credit card account is the primary method for them to have access to a credit card. As an authorized user, your child receives a card bearing their name, but the account itself remains under your primary responsibility. This means:

• No Credit Check for Them: Your child does not undergo a credit check, as they are not the primary account holder.
• Shared Account Access: They can make purchases using the card, drawing from your credit limit.
• Primary Cardholder Responsibility: You, as the primary cardholder, are solely responsible for all charges made on the account, including those made by authorized users.
• Potential Credit Building: The account's payment history may be reported to credit bureaus for the authorized user, potentially helping them build a credit history early, provided payments are made on time.

Benefits of Adding a Child as an Authorized User

Adding a child as an authorized user can be a valuable tool for financial education and convenience.

• Financial Literacy: It provides a practical, hands-on opportunity to teach responsible spending, budgeting, and the consequences of debt. You can set limits and discuss purchases.
• Building Credit History: For many authorized users, the account's history is reported to credit bureaus. A well-managed account with timely payments can help your child establish a positive credit history even before they turn 18. This can be beneficial later for loans, housing, or their own credit cards.
• Emergencies: It offers a convenient payment method for your child in case of an emergency, or for school trips, after-school activities, or other necessary expenses when they are away from you.
• Convenience: For parents, it can simplify managing allowances or providing funds for specific purchases without the need for cash.

Considerations Before Adding Your Child

Before adding your child as an authorized user, it's crucial to consider the implications and set clear guidelines.

• Age Requirements: While there's no legal minimum age for authorized users, some credit card issuers may have their own minimum age requirements (e.g., 13 or 16 years old). Always check with your specific credit card company.
• Spending Limits & Monitoring: Most credit card accounts allow you to set spending limits for authorized users. Utilize these features and regularly monitor their spending to ensure responsible use.
• Impact on Your Credit: Remember, you are ultimately responsible for all charges. Any late payments or high balances on the account will affect your credit score, not just theirs.
• Open Communication: Have a serious conversation with your child about how the card should be used, the importance of staying within limits, and the concept of credit. Treat it as a learning experience about financial responsibility.

How to Add Your Child as an Authorized User

The process for adding an authorized user is generally straightforward and can often be done online or over the phone.

1. Contact Your Credit Card Issuer: Log in to your online account or call your credit card company's customer service.
2. Provide Information: You will typically need to provide your child's full name, date of birth, and sometimes their Social Security number (SSN). Providing the SSN ensures their credit history can be reported accurately.
3. Set Controls (Optional but Recommended): Inquire about features like spending limits or alerts for authorized user activity.
4. Receive the Card: A new card with your child's name will be mailed to you (the primary cardholder).
5. Activate and Educate: Once you receive the card, activate it and reiterate the rules and responsibilities with your child before they start using it.

Comparison: Child's Own Card vs. Authorized User