Does putting my daughter on my credit card help her credit rating when she wants to apply for her own card?

Question

I have excellent credit with no debt ohter than mortgge which is under $700 and pay credit card offf every month. I added her name to the card so she can use it when I think she needs something. can that help her credit. She is only 17 and no cards under her name. thanks

Answer 1

No.  Adding her only makes her an authorized user.  You are still responsible for payments

Answer 2

it will show up on her credit report

so if it is payed off on time it will help

Answer 3

FICO is making a major change to the FICO credit score formula. This was announced by Fair Isaac Corporation earlier. FICO scores will no longer factor authorized user accounts into their credit scoring formulas.

People that are listed as authorized users on credit card accounts will likely see a significant change in their credit scores when this modification takes place later this summer.

For most consumers, this change will have a negative impact on their credit scores. Only consumers who are listed as an authorized user on negative accounts or accounts that have balances that are close to the credit limit will possibly see an increase in their credit scores.

Adding a family member or friend as an authorized user on an existing credit card account has long been used as a way to establish credit. Many parents added their children as authorized users in order to help them build their credit history.

However, credit repair organizations have also started using this system as a way to fraudulently sell authorized user account access to consumers with credit problems. This credit repair loophole was part of the motivation for the FICO score change.

Hope this answers your question

LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advic

Answer 4

No...the credit bureaus have slashed that practice since so many people were 'piggy backing' on other's credit.

Since she's still only 17 she cannot have real credit extended to her. What I suggest is let her continue to be an authorized user so she can get a feel for what using credit is like and the responsibilities that go along with it.

When she is 18, she can apply for a secured card (because she doesn't have pre-existing credit she can't get a regular card). Start off with say $500 or more if she can handle it and then this will establish a credit line for her.

Drill it into her head that she must pay on time everytime. Credit is a precious commodity and she can s***w up pretty easily and a default won't stop rearing it's ugly head until 7+ years...she won't want that till she's 25!

You're a great mom for showing your daughter the ropes...wish my parents had...I had to learn the hard way.

Answer 5

No, it only teaches her how to be a slave to the credit card company...just like you.