If you have a kid and want to set them up for success financially, consider adding them as an authorized user on your credit card.
The length of your credit history is a major factor to your credit score, so by starting that credit history when the child is still in your home, you could be adding a full decade or more to their credit history. This will improve their rates when they take out loans later in life and make it easier for them to buy a car, get an apartment, get a mortgage, etc.
Note that you don't actually need to give your kid the card or allow them to spend your money. Just adding them as an authorized user and keeping the card tucked away somewhere safe is enough.
Only do this if you always pay off the full balance on time. Responsible borrowers who do this will share their good history with their children, but irresponsible borrowers could actually hurt their child's credit score by attaching their name to a delinquent account.
Submitted June 30, 2023 at 11:33PM by dapacau https://ift.tt/5ubx1v9
