Ripley Posted January 22, 2014 Share Posted January 22, 2014 I am thinking about authorizing my teenager on a store credit card (of mine). I have no real reason to, or not to, was just thinking about doing it. Their terms say they'll start reporting the account to major credit reporting agencies in BOTH of our names. I'm not savvy about this type of thing. I carry no credit debt, and pay off my balances every month. I have no car, home, or student debt either. I'm wondering how this might affect him - with regards to financial aid down the road, job applications (they seem to run credit checks these days), and any cards he'll want to take out in his own name in the next few years (gas, etc.) I don't know if it'll help, hurt, or not matter at all to begin a credit history right now. Which is smarter: to just let him use my card when he needs it, or to authorize him as a user on the account? Quote Link to comment Share on other sites More sharing options...
Mary in VA Posted January 22, 2014 Share Posted January 22, 2014 How old is he? Our dds both got a credit card with a $500 limit when they went to college. Quote Link to comment Share on other sites More sharing options...
Joker Posted January 22, 2014 Share Posted January 22, 2014 We started our 13 year old off with a debit card through our credit union. Money is added to her account periodically (she adds most but we add some to it occasionally as well). We plan on an actual credit card with a low limit when she goes to college. Quote Link to comment Share on other sites More sharing options...
PeterPan Posted January 22, 2014 Share Posted January 22, 2014 This is terrible, but I can't fathom you'd want his actions tied to your account. I don't trust my kid farther than I can throw her, because I know she's human. If there's no compelling reason, why do it? My kid shops with my MIL, so for that I got a card to my account in my MIL's name. Again, it creates a check. A kid, I'd give cash and the envelope system. Quote Link to comment Share on other sites More sharing options...
Ripley Posted January 22, 2014 Author Share Posted January 22, 2014 How old is he? Our dds both got a credit card with a $500 limit when they went to college. He's turning 14. Quote Link to comment Share on other sites More sharing options...
Ripley Posted January 22, 2014 Author Share Posted January 22, 2014 We started our 13 year old off with a debit card through our credit union. Money is added to her account periodically (she adds most but we add some to it occasionally as well). We plan on an actual credit card with a low limit when she goes to college. He currently has his own debit card through USAA, and we have the same set-up as you - it's largely his paychecks, with some money from me sprinkled in on occasion. I was never a big credit card user. My family has always been cash - I think it comes from being an immigrant family distrusting of some institutions. LOL So I didn't have any credit cards until my (now ex-) husband opened some in my name when we were in our 20s. But I went to college with a number of people who got heavy into credit debt freshman and sophomore year because it seemed so easy. And we knew several buck privates who fell into the same trap. I think part of me wants to address this issue ahead of time, to hopefully avoid this scenario. And I thought this might be one way to do that. But I wasn't sure ... Quote Link to comment Share on other sites More sharing options...
TechWife Posted January 22, 2014 Share Posted January 22, 2014 I wouldn't do that. Let him establish his own credit, not potentially ruin yours. Quote Link to comment Share on other sites More sharing options...
Ripley Posted January 22, 2014 Author Share Posted January 22, 2014 This is terrible, but I can't fathom you'd want his actions tied to your account. I don't trust my kid farther than I can throw her, because I know she's human. If there's no compelling reason, why do it? My kid shops with my MIL, so for that I got a card to my account in my MIL's name. Again, it creates a check. A kid, I'd give cash and the envelope system. Oh, I don't think it's horrible. LOL There's truth to it, after all. My son does a lot of shopping on his own. Most of the time stores will allow him to use my card, but he's at the age (does it seem like a lot of people dislike or distrust teenagers?) where some won't allow him to. That makes an extra trip for me. Not the end of the world, but ... kind of annoying. I have some of the same concerns, but I was trying to find a way to guide him through these waters while the risks were lower - it'd be a store card, it's a card I don't carry a balance on, and a card I use frequently enough that I'm on top of charges and payments (meaning any negative actions on his part would be flagged - by me - quickly). I don't know if that's a compelling reason. I'm not set on it or set against it, and I appreciate your perspective. It really helps me to discuss things (and all options) out loud. Quote Link to comment Share on other sites More sharing options...
Ripley Posted January 22, 2014 Author Share Posted January 22, 2014 Really I was most interested in how it would affect HIS credit - not mine. I'm not so much worried about my credit. Quote Link to comment Share on other sites More sharing options...
PeterPan Posted January 22, 2014 Share Posted January 22, 2014 Ripley, you might inquire with banks to see if they do any programs aimed at high schoolers. One of the banks in our area does, and I got dd signed up. There are other financial advice things aimed at kids that I haven't done yet. Who's the dude with the bald head who talks money? The name is just NOT coming to me, lol. Doesn't he have stuff for kids? I got something at the convention last spring, but we haven't done it yet. It was curriculum connected to Larry Burkett's stuff. I'd start with education, not an account. Quote Link to comment Share on other sites More sharing options...
PeterPan Posted January 22, 2014 Share Posted January 22, 2014 Oh, I don't think it's horrible. LOL There's truth to it, after all. My son does a lot of shopping on his own. Most of the time stores will allow him to use my card, but he's at the age (does it seem like a lot of people dislike or distrust teenagers?) where some won't allow him to. That makes an extra trip for me. Not the end of the world, but ... kind of annoying. I have some of the same concerns, but I was trying to find a way to guide him through these waters while the risks were lower - it'd be a store card, it's a card I don't carry a balance on, and a card I use frequently enough that I'm on top of charges and payments (meaning any negative actions on his part would be flagged - by me - quickly). I don't know if that's a compelling reason. I'm not set on it or set against it, and I appreciate your perspective. It really helps me to discuss things (and all options) out loud. Ok, so he's using your card already when he shops? I'm lucky to have the MIL going with her to take care of that. If you're not running a balance, maybe add the amount to his current debit card as a clothing or whatever stipend? What about visa check cards? If he were closer to 18, I'd probably go ahead and get him the card you expect him to take to college (visa that auto pays from his account). Does your bank offer something like that? Then you could have them just set the credit limit really low. I think store cards are a trap, because you get debt funneled here and there and don't see the total. I just got the Mint app, which you can put on your desktop or device. Might be interesting to try with him, so he can see all his balances and watch it instantly update and adjust. Quote Link to comment Share on other sites More sharing options...
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