THE NO JOB LIFESTYLEHow authorized user status works at 16
A parent adds the teen to their card, and the issuer may then report the account on the teen's credit file. The parent remains responsible for paying. The teen can get a card with their own name or the parent can simply keep it in a drawer. Either way, the history may be added.
Issuers set their own age minimums and rules, and some do not report for younger users. Call and ask two questions: can a 16 year old be added, and will the account be reported to the bureaus for that person? Some issuers may need a Social Security number to report correctly.
Choose the right card
- Long history: an older account may add more age to the file.
- Perfect payments: one late mark could appear on the teen's file too.
- Low balance: a high balance can show as high utilization on both files.
- No surprises: pick a card the parent will keep open, and tell the teen how it works.
- Spending rules: agree on limits, and use alerts if the teen will spend on it.
Other ways to get ready
There are helpful steps that do not create a credit file. A joint checking and savings account teaches the basics, even though these accounts are not reported as credit. A part time job and saved money prepares the teen for a first card at 18. A debit card from a family banking app can teach tracking and budgeting, but debit use itself does not build credit.
Learning how statements, due dates and interest work now will pay off later. At 16, teach the basics with real bills, and show how a late fee or high interest charge affects a monthly budget. Those lessons may do more than the tradeline itself.
Protect the teen's file
Most minors do not have credit reports. If one exists and the child has never been added to an account, that may signal identity theft. Parents can ask each bureau for a check, and can place a security freeze for children under 16 under federal law. At 16 and 17, teens can usually request their own freeze with proof of identity. A freeze blocks most new credit checks and is free.
If you do add a teen as an authorized user, a report should show up. Check it about 60 days later at AnnualCreditReport.com, which serves those 18 and older, or ask the bureaus how to obtain a minor's file, as the process differs and may need proof of the parent's identity. When the teen reaches 18, check all three reports and plan a first card of their own, such as a student or secured card.
Questions people ask
Can a 16 year old have a credit score?
It is possible if an authorized user account is reported, although some scoring models need at least a minimum of history. Not everyone will show one right away.
Will this hurt the parent's credit?
Adding a user does not by itself hurt. Extra spending that raises the balance could, so keep a limit in place.
When can a teen get their own card?
Usually at 18, with independent income or a cosigner if under 21, according to the federal CARD Act.