Rental Property Investor · Member since 2018 · 5 posts · 0 votes
Does anyone know which credit cards will report an authorized user to credit bureaus? I’m trying to add my kid so he can build credit early but can’t find a card he can piggyback with me that will actually report to credit agencies
Real Estate Agent · Orange County · Member since 2022 · 317 posts · 293 votes
2y
@Kirstyn Indy - I would start off by calling the credit card(s) that you wish to add your child as an authorized user. Simply ask them if they report to the credit bureaus and if yes, which ones. Not all credit cards report activity to credit bureaus, and some may not report to all three major credit bureaus. Credit reporting is voluntary, and some credit card companies choose to work with only one or two bureaus, or even opt out entirely. For example, cash advance apps don't report activity to the credit bureaus unless you are seriously behind on your payments. Many credit card issuers report account activity to all three major credit bureaus, but some don't. For example, Capital One reports authorized users to all three of the major credit bureaus (Experian, Equifax and TransUnion).
Creditors and lenders are not required by law to report to credit bureaus. However, many businesses choose to report on-time payments, late payments, purchases, loan terms, credit limits, balances owed, and significant events such as account closures or charge-offs. Generally, you can expect credit card activity to be reported to the credit bureaus every 30 to 45 days, usually at the end of the billing cycle.
I think its a great idea to add your children as an authorized user to start building their credit. However, more important is to TEACH them the nuances of credit so that you can enable them to become responsible credit users.
Real Estate Agent · Orange County · Member since 2022 · 317 posts · 293 votes
2y
@Kirstyn Indy - I would start off by calling the credit card(s) that you wish to add your child as an authorized user. Simply ask them if they report to the credit bureaus and if yes, which ones. Not all credit cards report activity to credit bureaus, and some may not report to all three major credit bureaus. Credit reporting is voluntary, and some credit card companies choose to work with only one or two bureaus, or even opt out entirely. For example, cash advance apps don't report activity to the credit bureaus unless you are seriously behind on your payments. Many credit card issuers report account activity to all three major credit bureaus, but some don't. For example, Capital One reports authorized users to all three of the major credit bureaus (Experian, Equifax and TransUnion).
Creditors and lenders are not required by law to report to credit bureaus. However, many businesses choose to report on-time payments, late payments, purchases, loan terms, credit limits, balances owed, and significant events such as account closures or charge-offs. Generally, you can expect credit card activity to be reported to the credit bureaus every 30 to 45 days, usually at the end of the billing cycle.
I think its a great idea to add your children as an authorized user to start building their credit. However, more important is to TEACH them the nuances of credit so that you can enable them to become responsible credit users.
@Kirstyn Indy - I would start off by calling the credit card(s) that you wish to add your child as an authorized user. Simply ask them if they report to the credit bureaus and if yes, which ones. Not all credit cards report activity to credit bureaus, and some may not report to all three major credit bureaus. Credit reporting is voluntary, and some credit card companies choose to work with only one or two bureaus, or even opt out entirely. For example, cash advance apps don't report activity to the credit bureaus unless you are seriously behind on your payments. Many credit card issuers report account activity to all three major credit bureaus, but some don't. For example, Capital One reports authorized users to all three of the major credit bureaus (Experian, Equifax and TransUnion).
Creditors and lenders are not required by law to report to credit bureaus. However, many businesses choose to report on-time payments, late payments, purchases, loan terms, credit limits, balances owed, and significant events such as account closures or charge-offs. Generally, you can expect credit card activity to be reported to the credit bureaus every 30 to 45 days, usually at the end of the billing cycle.
I think its a great idea to add your children as an authorized user to start building their credit. However, more important is to TEACH them the nuances of credit so that you can enable them to become responsible credit users.
Los Angeles, CA · Member since 2021 · 583 posts · 738 votes
2y
@Kirstyn Indy
Start a secured line of credit. That's how I did it.
I'm not sure how old your kids are but...
When I was in 9th grade, I was working hard as a diamond cutter and wanted to establish credit because I had learned this is how this country operates. Also, I was working with cash and wanted to be legit. I gave BofA $5000 for a credit card. They hold it for 2 years then return it back to you, but the credit line remains and grows and tied to your SSN. It worked great. I bought a house by 11th grade. I still have that card. I even tried to buy a 7-11 with it back in the day but didn't pull the trigger because I didn't have time to go to 7-11 school.
They probably still do it, people just never ask. Hit up the bank and ask what they require.