Can I Add My Child To My Credit Card? (2024)

Most credit card issuers allow children under 18 years to be added as authorized users on a credit card and some don’t have any age restrictions whatsoever. Adding your kids as authorized users on your credit cards may seem counterintuitive to the concept of financial independence. But it offers one way to help them learn responsibility, build their credit scores and continue the conversation about money all while helping them prepare for a future of financial independence.

What Is an Authorized User?

An authorized user is someone who has charging privileges on a credit card account. Some credit cards also provide authorized users with many of the same benefits the primary cardholder receives. Although the credit card’s history may report to the authorized user’s own, separate credit profile, an authorized user is not legally responsible for the debt—the primary cardholder is.

Joint Account vs. Authorized User: What’s the Difference?

A joint account is an account where two or more people are legally responsible for a debt. Mortgages, auto loans, bank accounts and some credit cards can all be held jointly.

In most cases, a joint account holder can’t be removed from the debt unless it’s refinanced or approval is given by the creditor, who will likely want to see if the new primary account holder can handle payments on their own. By comparison, an authorized user can be removed from a credit card at any time relatively easily.

Pros and Cons of Adding an Authorized User

There are many reasons why you might consider adding your kids as authorized users on your credit card, but keep in mind there are potential consequences for both you and your children once they’re added.

Pros

1. Teach financial responsibility. A credit card is a useful tool to help teach your children financial responsibility. Authorized users are allowed to make charges to the primary cardholder’s credit card. This can teach young people to pay off charges each month without incurring interest if managed properly with oversight from a parent or guardian.
2. Give your child independence. Giving your child his or her own credit card allows spending independence. Instead of asking you for money every time they want to spend money, they can use the credit card to make the purchase. The obvious disadvantage here is that you lose some control of their spending, too.
3. Encourage conversations about money. Handing your kid a credit card isn’t the end of your money lesson—it’s the beginning. Parents should have regular conversations with kids about credit card habits. Print out the statement each month and walk through the transactions. Don’t just talk—also listen to what they have to say and encourage them to ask questions.
4. Build their credit history. As an authorized user, your credit card will build your kids’ credit history. The credit card usage and payment history will be added to their credit profile. This will help them when it comes time to apply for their own credit card or other types of credit.
5. Earn rewards for their spending. If you have a rewards credit card, every time your child makes a purchase, you’ll earn rewards. Although these purchases may be small, the rewards add up over time. Some credit cards offer annual benefits at certain spending levels, which means that their purchases also get you closer to meeting those hurdles.
6. Authorized users receive benefits. Some credit cards with cardholder benefits extend some of those benefits to authorized users. These benefits could include airport lounge access, rental car protection and free checked bags. The Citi® / AAdvantage® Executive World Elite Mastercard®* provides complimentary Admirals Club lounge access to all authorized users when flying on American Airlines. The Chase Sapphire Reserve® gives authorized users access to roadside assistance, which can give peace of mind when you hand your teenager the car keys.

Cons

1. You’re on the hook for their spending. As the primary cardholder, you’re responsible for all purchases your authorized users make. It’s important to stress to children before handing them the credit card the responsibilities included with credit card spending power.
2. They may have access to your entire credit limit. For most credit cards, authorized users can spend up to the main card’s maximum credit limit (or potentially higher). Business credit cards and American Express credit cards may allow you to set individual credit limits for authorized users.
3. It can be hard to tell who is spending what. It may be hard to differentiate your kids’ spending from yours since most banks give authorized users the same credit card number as the primary cardholder. American Express credit cards and business credit cards offer unique card numbers to authorized users and break out their charges when the bill comes.
4. Their spending could affect your credit score. Credit utilization makes up 30% of a credit score. If your children spend a lot on your credit card, your utilization could increase and reduce your credit score. This could have personal consequences when applying for a loan or refinancing a home.
5. Some credit cards charge fees for authorized users. Not all authorized user credit cards can be added without additional cost. Premium credit cards may charge a fee for authorized users. For example, the Chase Sapphire Reserve® charges $75 for each additional user per year.
6. Your credit activity could hurt them. Adding children as authorized users could hurt them if the primary cardholder’s finances sour. A late payment, charge-off or bankruptcy could place a negative mark on any authorized users’ credit.

How To Add Your Child as an Authorized User

Adding an authorized user is usually a straightforward process. Contact your bank or card issuer by calling them at the phone number written on the back of your credit card to begin. Some issuers allow cardholders to add authorized users through an online dashboard.

How Do I Add My Child as an Authorized User?

Adding your child as an authorized user is the same as for anyone else. Every bank requires different information when adding an authorized user to credit cards. Be ready with the following information about your child in case your bank asks:

• Full name
• Email address
• Date of birth
• Social Security number
• Phone number
• Relationship to the primary cardholder
• Mailing address
• Citizenship

How To Remove Your Child as an Authorized User

As your children grow up and start to build their own credit, you may want to remove them as authorized users. But you may not want to rush it.

Because your credit card may have a larger line of credit and longer credit history, consider keeping your kids as authorized users for a couple of years after opening their first accounts. This will allow your account to give their scores a boost while their accounts build up their own history and expand their credit limits.

When you’re ready to remove your child as an authorized user, call your bank at the number on the back of your credit card. Some banks allow you to remove authorized users online or by submitting a secure message through online banking.

Because you and your child’s credit card number may have been the same, consider asking the bank for a new card number. This will prevent your child from making future charges.

Credit Card Act of 2009

The Credit Card Act of 2009 increased cardholders’ rights and set stricter standards on card issuers to cut down on abusive practices. Successful directives include transparent marketing to allow for easier card comparison, clearly written terms and conditions and monthly statements to provide information on interest rates, length of time required to pay off balances and more.

The Card Act protects young cardholders by restricting deceptive marketing practices on college campuses and putting in place more regulations for cardholders younger than 21.

Card Act of 2009 Effects on Young Adults

The authorized user strategy for young adults became even more important with the passing of the Card Act of 2009. This law made it harder for people under the age of 21 to receive approval for personal credit cards because it required them to be able to document an ability to repay the debt independently.

Since many college-age children don’t have jobs, they could either become authorized users or have parents co-sign for them. Adding your children as authorized users is the preferable strategy because you control the account. As a co-signer, the only way to be removed from the obligation is to close the credit card or prove financial independence of the new solo account holder. Note that not all banks allow co-signers on credit cards.

Cost of Adding Your Child as an Authorized User

Some credit card issuers charge for every additional user—especially on those card accounts with annual fees. Some credit cards allow authorized users for no additional cost.

Call the number on the back of the card or contact the issuer online to find out what the cost will be to add your child as an authorized user.

Consider Setting Some Ground Rules for Your Child

Setting some ground rules with children before letting them use authorized user credit cards is always a good idea. Make sure you’re both on the same page about what your kids can and can’t use the credit card for.

Here are some topics to discuss:

• How much can your children spend each month?
• What items are they allowed to purchase?
• At which stores are they allowed to spend?
• Is permission necessary before making a purchase?
• How will they pay for their purchases?
• Will they make payments to you or pay the bank directly?
• How long will they remain authorized users?

Also, be sure to talk about what happens if they don’t follow the rules. Will you take their credit cards away or restrict their purchases somehow?

Your child does not necessarily need to use the authorized user credit card or even have possession of it for it to build their credit history. You can add their names to a card and hold onto the physical authorized user cards to prevent any mishaps.

Keeping cards away from your child doesn’t help them build good credit habits or provide access to funds in an emergency—it only creates credit profiles for them. To help them build good habits while limiting your exposure, ask your credit card issuer about setting lower credit limits on the authorized user cards.

Not all banks offer this feature, but some card issuers—like American Express—do. With American Express, each authorized user has a separate credit card number from the primary cardholder. This makes it easy to determine which purchases were made with which card.

Bank Rules Regarding Children as Authorized Users

The ability to add a child as authorized users depends on age and the bank’s rules.

Children who are 18 and older can be added as authorized users without issue. Some banks may not allow children under a certain age to be added as authorized users. Below are the minimum age requirements for some of the most popular banks.

Bottom Line

Adding your child as an authorized user on your credit card is like handing your child a hammer. If a hammer is used properly, your child can safely and responsibly hang up a picture. If used carelessly, your child can break an heirloom. Make sure your child is ready for the responsibility of being an authorized user before you proceed.

Frequently Asked Questions