Give Your Child Some Credit

Naming your child as an authorized user on your credit card can be a great way to set them up with a healthy credit report.

- By Emma Patch

An authorized user is a secondary account holder on a credit card, which means the user has access to an existing credit card account but ultimately isn’t responsible for making payments. Although someone can become an authorized user of a sibling’s or even a friend’s account, the most common arrangement is between a parent and a child. The arrangement benefits young adults who may not qualify for credit on their own because they have little or no credit history and limited income. Although most credit card companies won’t issue a card to someone who is younger than 18, a child who is younger than that can be an authorized user.