How to Help Your Child Build Credit
7 Min Read | Last updated: September 30, 2025
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Learn how to help your child build credit by adding them as an authorized user, teaching responsible spending habits, and monitoring their credit report.
At-A-Glance
- Parents can help their children build credit early by adding them as authorized users on a credit card or helping them open a starter credit account.
- Teaching kids responsible credit habits, like making on-time payments and keeping balances low, can help set them up for long-term financial success.
- Monitoring a child’s credit report and talking through financial decisions can set them up for a strong financial future.
In today’s fast-paced financial world, teaching your children the basics for building credit is like handing them a key to future opportunities. Having a good credit score may make it easier for them to qualify for loans, rent the apartment they want, and even become eligible for more rewarding credit cards later.
And the good news is your child doesn’t have to wait until early adulthood to build credit. These tips can help them start establishing credit so they have a financial leg up by the time they’re ready to make the leap into a healthy financial future.
1. Teach Your Child About Credit
One of the most important ways to help ensure your child can establish a good credit history is to educate them about the importance of credit and how a credit score is calculated.
Once your child understands how credit works, they’ll see how building credit history is a slow and steady process that’s ultimately rewarding. For example, they’ll know that establishing a healthy credit history now can help them secure a mortgage in the future. And knowing what credit score they need to buy a house can encourage them to stay on track with building credit.
2. Add Your Child to Your Credit Card Account
For your child to get a credit card in their name, they must be at least 18 years old and have their own steady source of income. However, you can probably add them as an additional card member (aka authorized user) to your credit card account. Authorized users can build credit by benefitting from your good credit habits.
Some cards require authorized users to be of a certain age, such as 13 or older, but others have no age minimum, which could allow them to start building their credit from scratch early on. Be sure to check your card issuer’s requirements, as they can vary.
3. Limit Your Child’s Credit Card to Basic Recurring Expenses
If your child is eligible for a credit card, it can help to set some guidelines to build healthy credit card habits early on. One way to do that is to have your child designate their new credit card for basic, recurring purchases they’d be making anyway, like gas or school lunches. This way, you both know they can afford to pay their credit card bill on time and in full and they can start establishing their credit history in a slow and steady fashion.
4. Let Them Manage Their Own Bills
Credit cards aren’t the only way to build credit. Though many on-time bill payments aren’t reported to the major credit bureaus, missed or late payments can impact your score. Teaching your child the importance of paying bills on time when they only have a few on their plate can help them get accustomed to making regular payments, which is an important element of building and maintaining good credit as an adult.
5. Apply for a Credit Card for People with a Minimal Credit History
If your child is ready to take on the responsibility of a credit card but their credit history is still too thin to be approved, another alternative is to apply for a credit card designed for those with minimal credit history. Student credit cards, for example, are designed for young adults with little to no credit. They may have lower credit limits and no annual fees to help your child start establishing credit without too much risk of overspending.
Secured credit cards are another option. Backed by a cash deposit that’s used as collateral, secured credit cards can be a useful way for them to build credit when their financial history is too limited to be approved for a traditional credit card.
6. Cosign a Credit Card for an Older Child
If your child is 18 and eligible to apply for a credit card, they may have a better chance of being approved if you act as a cosigner. Becoming a cosigner for a credit card means you’re applying for the credit card alongside your child and agreeing to cover payments if your child is unable to do so. It’s a large responsibility that has potential benefits and risks; however, if you feel that your child is responsible enough to manage credit on their own, it could be a step that enables them to begin building credit as a primary cardholder.
When Can You Start Building Credit With Your Child?
Your child may need to be between 13 to 15 years old in order to be added as an authorized user on your account so they can start building credit. However, age requirements vary depending on the credit card issuer. Be sure to check with your credit card issuer to see what the minimum age is for authorized users.
How to Check Your Child’s Credit Report
Now that you have the tools to help your child build credit, it’s important to learn how to monitor it. While your child’s credit history might be sparse until they reach their early 20s, it still makes sense to check your child’s credit report before they turn 18. Doing so can help ensure they haven’t been the victim of child identity theft.1
You can check your child’s credit report by contacting the three credit reporting bureaus: Experian®, Equifax®, and TransUnion®.2 Each bureau provides instructions to help parents or legal guardians check a child’s report.
Before you begin the process, be sure you have access to:
- Your government-issued identification, like a driver’s license or passport
- Proof of address, like a credit card or utility bill
- Your child’s Social Security number (SSN) and birth certificate
Frequently Asked Questions
You can’t open a new credit card for your child unless they are over the age of 18. However, you may be able to add your child as an authorized user to your existing credit card. Check with your card issuer for instructions and restrictions on adding an authorized user.
Technically, there is no preset age when your child will receive a credit score. Instead of starting with a credit score, your child may receive a score after about six months of building their credit history.
Teaching good money habits is helpful at any age. However, there are potential drawbacks to consider before adding a child to your credit card as an authorized user:
- You’re Responsible for Their Spending
If you add your child as an authorized user, you take responsibility for all charges on their credit card. It may be wise to outline your expectations and restrictions if you think your child may feel tempted to spend freely. If they run up major charges that you have to pay back, both of your credit scores could be put at risk.
- You or Your Child May Have Privacy Concerns
When you’re sharing a financial account, you’ll have visibility into your child’s purchases. While that might seem like a benefit to you, it could be viewed as an invasion of privacy by your child. It’s important to set boundaries and ensure both sides are comfortable with sharing the information before it strains your relationship.
The Takeaway
Helping your child establish credit can be an effective way for them to jump-start their financial lives when they’re ready to leave the nest. While taking out a credit card and using it responsibly can help to establish or build credit, parents can start the process early by adding their children as authorized users and teaching them about the importance of good credit.
1 “How To Protect Your Child From Identity Theft,” Federal Trade Commission
2 “Credit Bureau Contacts,” Federal Trade Commission Identitytheft.gov
Megan Doyle is a business technology writer and researcher whose work focuses on financial services and cross-cultural diversity and inclusion.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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