Millennial Money: Why adding a child as an authorized user might not help their credit
By LAUREN SCHWAHN of NerdWallet
Adding your child as an authorized user on your credit card can be a simple way to start building their credit file. But if the issuer doesn’t report account details to the credit bureaus or your account isn’t in good standing, their credit score won’t get enhanced. Future lenders also might not take authorized user accounts into consideration. There are other effective strategies worth exploring to establish good habits and build credit, such as talking to your kid about money when they’re young and guiding them toward their own credit account when they’re older.
