Improve my kid’s credit score

[Austin]

I’m trying to teach my 15 years old sun about money. As part of this I want to teach him about credit. If I give him a credit card with a very low limit, will it help build his score?

[Tracy Winters]

He can’t have a credit score until he’s of legal age

Theoretically, adding your son as an authorized user to your existing credit card should do the trick. The account would appear on his credit report and would count in his Fico score.

However, the credit bureaus do no knowingly maintain minors’ credit files, so most chances he would not have a score at all until he turns 18. Also, they are not allowed to provide his credit report to you, and as a minor he doesn’t have access to any credit bureau’s data base.

Teaching your kid about money is very smart. I think that all parents needs to do it these days. Teaching him about credit cards and responsibility is even smarter, and should translate into good credit when he’s on his own.

I know that many people won’t agree with you and will argue that you need to teach his to save rather than to use credit. It may be true. But the alternative of him encountering credit for the first time at 18 or 20 is, at least in my eyes – worse.

He’d better learn about credit from you, and not by making mistakes on his own and ruining his credit while in the process.

If you’re interested here’s a good article on teen money management.

[Author]

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