As parents, we want our children to have the best possible start in life — from getting good grades and excelling at sports and activities, to learning responsibility by holding a part-time job. Some go even further to set their children up for saving and investing by opening a custodial account for them, like a Roth IRA for kids or a UTMA/UGMA.
Theres another easy step you can take to give your kids a financial edge: Adding a child to your credit card as an authorized user may help your child build their credit history and score by piggybacking on yours. Then, once they reach adulthood, theyll have a better shot at getting approved for lucrative rewards credit cards and other forms of credit (like loans or mortgages).
Bear in mind that adding an authorized user is not the same as opening a joint credit card.
That said, adding your child as a credit card authorized user isnt without risk. Heres how to decide if this strategy is a good fit for your family.
As a parent, you want to set your child up for financial success. One strategy many parents use is adding their child as an authorized user on their credit card. This can help your child build credit history even before they turn 18.
But is it wise to make your 5 year old an authorized user? Let’s take a look at the pros and cons
What is an Authorized User?
An authorized user is someone who has access to use a credit card account but is not legally responsible for repaying the debt The primary cardholder retains all liability.
Authorized users receive a card in their name that is linked to the primary cardholder’s account. Any charges made by authorized users appear on the primary cardholder’s statement.
The account history, including the authorized user’s purchases and payments, can be reported to the credit bureaus under the authorized user’s name. This helps build their credit profile.
Can You Add a 5 Year Old as an Authorized User?
Most major credit card companies allow authorized users as young as 13 years old. However, some issuers like Capital One and Bank of America have no minimum age requirement.
So yes, you can legally add your 5 year old as an authorized user on your credit card account. But should you?
Potential Benefits of Adding a 5 Year Old Authorized User
Here are some potential advantages of making your young child an authorized user:
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Start building credit history: With no or little credit history of their own, adding your child can give their credit profile a boost by letting them benefit from your good history.
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Learn money management: With supervision, a credit card can teach children as young as 5 basic money skills like saving up to buy something and understanding needs versus wants.
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Emergency access to funds: For older children, having a card can provide access to funds in case of an emergency when a parent isn’t available.
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Earn rewards on their spending: Any rewards your card earns from your child’s purchases are awarded to the primary cardholder.
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Enjoy card benefits: Some premium travel rewards cards extend certain benefits like rental car insurance to authorized users.
Risks of Adding a 5 Year Old Authorized User
Giving a 5 year old access to your credit card also comes with some downsides:
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You’re liable for their charges: As the primary cardholder, you’re responsible for any purchases or charges made by your authorized users, intended or not.
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It could impact your credit: If your child overspends, your credit score could take a hit from high balances and credit utilization.
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They may not understand credit: Letting young children use credit cards can give the impression you can buy things without consequences.
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Difficulty tracking purchases: Since authorized users share the same card number, it’s tough to differentiate who spent what.
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Must monitor statements closely: You’ll need to meticulously check statements monthly to catch any unintended or unwanted spending.
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Harder to teach financial lessons: At just 5 years old, more active supervision is required to teach proper spending habits, which can be challenging.
Tips for Adding Your 5 Year Old as an Authorized User
If you understand the risks but still want to make your young child an authorized user, here are some tips:
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Set clear usage rules and spending limits based on their age and maturity level. Explain these guidelines in simple terms.
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Consider using a low-limit card or set a restricted authorized user limit if available from your issuer.
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Make sure your child understands you’ll be reviewing all spending on their card.
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Go over each statement together as a learning opportunity to explain responsible credit use.
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Start with just using the card with your supervision for needs, not wants. This builds discipline before giving independent access.
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Consider removing your child as an authorized user if you notice irresponsible spending or don’t have time to monitor closely.
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As your child grows older, slowly increase card access as they prove they can handle the responsibility.
When to Wait Until They’re Older
While legally you can make your 5 year old an authorized user, it may be wise to wait until they’re a bit older before giving them access to credit.
Some signs your child may not be ready yet include:
- Difficulty grasping spending limits and credit card concepts
- Lack of impulse control over wants
- Not able to grasp the value of money yet
- Lack of maturity in general to handle responsibility
Many experts recommend waiting until at least 12-15 years old before making your child an authorized user. At this point, they are more likely to understand credit card responsibility with proper guidance.
The easiest guideline – wait until your child demonstrates financial maturity rather than relying on age. Evaluate their money management skills first and set up a supervised trial period before giving them free rein.
Alternatives for Younger Kids
If your child is very young but you want to teach money skills, here are some options that don’t involve credit cards:
- Give an allowance and coach them on saving goals and smart spending
- Open a custodial savings account they can manage under your watch
- Use prepaid debit cards or gifts card to teach spending habits
- Have them earn money through chores to connect work and money
The key is active involvement in modeling and teaching sound financial principles – not just handing over a credit card.
The Bottom Line
While you can legally add your 5 year old as an authorized user, truly consider if it’s the best move before doing so. At such a young age, your child may not fully grasp credit card responsibility.
Focus first on teaching basic money skills and wait to add them as an authorized user until they exhibit discipline and financial maturity. With guidance and limits, a credit card can be a useful learning tool down the road.
The risks outweigh the rewards for most 5 year olds when it comes to credit card access. Assess your specific child and situation carefully. With monitoring and limits, authorized user status can be beneficial when age appropriate. But handing over credit too young can set up bad financial habits.
With wisdom and patience, you can equip your child with money management skills – with or without a credit card. The lessons you teach today will pay dividends long into adulthood.
Risks of adding a child as an authorized user
Adding your child as an authorized user to give their credit history a boost is not without pitfalls. If you plan to actually let the child use the card, its important to establish guidelines about when they can use it and how much theyre allowed to spend. Some kids are more responsible than others — and you know your child best.
Should you add your child as a credit card authorized user?
Minors under the age of 18 cannot open their own credit cards by law (or get approved for other forms of credit), so adding children as authorized users is a simple workaround many parents use to give their kids access to the convenience and benefits of a credit card.
An authorized user receives their own card, with their name on it — but its tied to the primary cardholders account.
Should You Make Your Child an Authorized User on Your Credit Card?
FAQ
Can I put my 5 year old on my credit card?
While some card issuers don’t have age restrictions, others require a minimum age of 13 to become an authorized user on a credit card. Even if you can add your child, the issuer may not report their account details to the credit bureaus.Apr 4, 2025
Will adding my son to my credit card help his credit?
Adding a child to your credit card as an authorized user can help them establish a credit history. Your credit history can boost theirs, and improve their odds of getting approved for credit later. Any charges they make are your responsibility; be sure to set clear guidelines and know the risks.
Can a 5 year old build credit?
A child generally only needs to be 13 to 15 years old to qualify as an authorized user and start building credit, while some card issuers have no minimum age requirement at all (read about the minimum ages for each card issuer).
Can I add my child to my credit one credit card?
You will need to provide the person’s full name, date of birth and address to add them as an authorized user. A primary cardholder can make anyone a Credit One authorized user, as long as they are at least 15 years old. There’s no limit to the number of authorized users you can add to an account.
Can I add my child to my credit card?
You can add a child under the age of 18 to a credit card as an authorized user as long as the child meets any age restrictions set by the issuer. If your child is 18, then the field is wide open for adding them to your card.
Can I add a child under 18 to a credit card?
You can add a child under the age of 18 to a credit card as an authorized user as long as the child meets any age restrictions set by the issuer. If your child is 18, then the field is wide open for adding them to your card. Here’s a breakdown of the top credit card issuers’ age requirements for authorized users:
When can a child get a credit card?
While your child can’t legally get a credit card on their own until they’re age 18, they can become an authorized user on your account before that. The minimum age for an authorized user varies by card issuer. Some card issuers require authorized users to be at least age 13, while others don’t set a minimum age.
Should I get a credit card for my child?
Getting a credit card for your child can give them a head start on learning to manage money and credit. For younger teens, that usually means adding them as an authorized user on one of your existing credit cards. They can gain experience, while you keep control over the account.
Will adding my Child to my credit card affect my credit score?
The action of adding your child to your existing credit card account won’t have any impact on your credit score. Nothing on your credit report indicates whether your credit card is used by authorized users or just the primary account holder. Yet your credit could be impacted if your child makes charges on the account.
How old do you have to be to use a credit card?
For example, American Express requires the authorized user to be 13 years old, whereas Chase and Capital One allow authorized users of any age. However, keep in mind that even though there may not be an age restriction, some issuers don’t report an authorized user account to the credit bureaus until the child turns 18.