1 year, 8 months ago
What are some ways teens can start building their credit?
My son is at that age where he needs to start building his credit. Should he get a checking account first? Should he start with a credit card? What are some ways teens can start building their credit?
Any help or tips are appreciated!
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Any help or tips are appreciated!
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M$1 Answer
A checking account is a good start BUT wont build credit. In which case if building credit is more your aim than teaching money handling it may be better to go with a secured credit card.
Another thing you as a parent can do is add him to as an authorized user on your cards that are in good standing. You don't even have to give him a card for the account or tell him you did it. When you add an authorized user all of your account history for the account goes on that persons credit report. So if you've had the card 10 years by adding him as a user you give him 10 years of good credit history. For someone with no history that's golden for his credit score.
Another thing you as a parent can do is add him to as an authorized user on your cards that are in good standing. You don't even have to give him a card for the account or tell him you did it. When you add an authorized user all of your account history for the account goes on that persons credit report. So if you've had the card 10 years by adding him as a user you give him 10 years of good credit history. For someone with no history that's golden for his credit score.
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