Building credit

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kate1234
Posts: 130
Joined: Sun Aug 17, 2008 4:19 pm

Building credit

Post by kate1234 » Fri Nov 24, 2017 11:20 am

I opened a joint Visa card when my son was 16. It gets robust use and of course the balance is paid off every month. Someone told me this was not adequate to build credit in his name - that a card had to be in his name alone to build the credit and so I should open one of those cards designed for college students now, while he is still in school. Is this true?

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flamesabers
Posts: 1572
Joined: Fri Mar 03, 2017 12:05 pm
Location: Rochester, MN

Re: Building credit

Post by flamesabers » Fri Nov 24, 2017 12:28 pm

kate1234 wrote:
Fri Nov 24, 2017 11:20 am
I opened a joint Visa card when my son was 16. It gets robust use and of course the balance is paid off every month. Someone told me this was not adequate to build credit in his name - that a card had to be in his name alone to build the credit and so I should open one of those cards designed for college students now, while he is still in school. Is this true?
Do you mean you added your son as an authorized user? I don't think he would be able to be a co-owner of a credit card when he's still a minor.

As for the impact on his credit score, I would recommend he get his credit report to see if the Visa card is even reporting for him. If not, it isn't doing much good for him I think in terms of building his credit score. Another consideration is some creditors may discount or even disregard accounts in which one is merely an authorized user when making a credit decision.

Once he's old enough, I think it's a good idea for him to open his own credit card account provided he can manage his credit responsibly.

kate1234
Posts: 130
Joined: Sun Aug 17, 2008 4:19 pm

Re: Building credit

Post by kate1234 » Fri Nov 24, 2017 12:52 pm

flamesabers wrote:
Fri Nov 24, 2017 12:28 pm

As for the impact on his credit score, I would recommend he get his credit report to see if the Visa card is even reporting for him. If not, it isn't doing much good for him I think in terms of building his credit score.
That was exactly the right advice. He is home for Thanksgiving so he ran a credit report. He is listed as "Authorized User" for that credit card on his report. I ran a report too (it was time anyway) and see that I am listed as "Individual" responsibility.

So thanks so much - I'll help him open a card in just his name.

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