Parents- how to build your kid’s credit?

[Kirstyn Indy]

Does anyone know which credit cards will report an authorized user to credit bureaus? I’m trying to add my kid so he can build credit early but can’t find a card he can piggyback with me that will actually report to credit agencies

[Manny Vasquez]

@Kirstyn Indy - I would start off by calling the credit card(s) that you wish to add your child as an authorized user.  Simply ask them if they report to the credit bureaus and if yes, which ones. Not all credit cards report activity to credit bureaus, and some may not report to all three major credit bureaus. Credit reporting is voluntary, and some credit card companies choose to work with only one or two bureaus, or even opt out entirely. For example, cash advance apps don't report activity to the credit bureaus unless you are seriously behind on your payments. Many credit card issuers report account activity to all three major credit bureaus, but some don't. For example, Capital One reports authorized users to all three of the major credit bureaus (Experian, Equifax and TransUnion). 

Creditors and lenders are not required by law to report to credit bureaus. However, many businesses choose to report on-time payments, late payments, purchases, loan terms, credit limits, balances owed, and significant events such as account closures or charge-offs. Generally, you can expect credit card activity to be reported to the credit bureaus every 30 to 45 days, usually at the end of the billing cycle. 

I think its a great idea to add your children as an authorized user to start building their credit.  However, more important is to TEACH them the nuances of credit so that you can enable them to become responsible credit users.

I hope this helps and good luck!