Parents play a crucial role in kids' money milestones, from starting a piggy bank to giving an allowance. Even if you know maintaining good credit is an important part of strong financial health, you might be unsure about how to build credit for your child or where to begin.
The good news: There are several ways to set your child with good credit long before they'll need it – and the earlier you start, the better.
Importance of a good credit score
If you're able to get a head start on establishing your child's credit history, they may be able to reap these benefits later on:
Lower interest rates on loans and credit cards
Larger selection of credit card options, including rewards options
Increased chance of rental applications being approved once they're ready to move out
Higher credit limits
Higher likelihood of qualifying for student loan refinancing options
At what age can you start building credit?
It’s possible to start building credit before your child turns 18. Most credit card issuers require you to be at least 18 to be the primary account holder, but parents can add a child as an authorized user on their account at any age, which would mark the start of their credit history. Getting a head start this way means your child could already have a credit foundation in place by the time they're ready to apply for credit on their own.
Read more: Want to start your child with a debit card? Learn about interest checking accounts
How to start your child off with strong credit?
No matter your child's current age, you can kick off their credit journey on the right foot. Whether you're wondering at what age you can start building credit or how to help a teenager establish a credit history, the strategies below apply across a range of ages:
1. Add your child as an authorized user to your credit card
An authorized user is someone who is added to another person's credit card account and can receive a card to make purchases but is not legally responsible for paying the balance. The primary account holder — in this case, a parent or guardian — remains fully responsible for the debt while the authorized user benefits from the account's payment history being reported to the credit bureaus. If you use credit cards, adding your child to your credit card as an authorized user can be a first step toward building their credit. That's because the length of credit history impacts a person's credit score. The sooner you add a child to your credit card, the longer their history will be.
Each bank has authorized user minimum age requirements, so check with yours for specifics.
Keep in mind: You're tying your child's credit to your spending and payment habits. If you struggle with maintaining good credit card practices, don't add them to new accounts or ones where you may be holding high balances.
2. Teach your child about building credit
Once they're old enough, start introducing the concept of credit — or, if they're still young, let them "borrow" against their future allowance to practice paying back what they spend. When you think they're ready, consider starting with a debit card before moving to a credit card; you can either add them to your checking account or open one in their name.
Monitor their spending for a few months to gauge how they're handling the responsibility. Use it as a teaching moment: the two biggest factors in a healthy credit score are making on-time payments and keeping balances low. A simple rule to practice early: "If you spend $30, you pay $30 by the due date — never just the minimum."
Keep in mind: Late payments and maxing out a credit limit are the fastest ways to damage credit, so if you start seeing those habits form, address them now. This groundwork is especially valuable for teenagers looking to build credit at 16 or 17, when small habits can have an outsized long-term impact.
By taking steps to establish strong credit for your child, you can help their journey to financial independence.
3. Allow your child to start using credit
Remember the credit card your child was issued when you named them an authorized user on your account? Once your child is at an age where they can start using a credit card responsibly, give it to them and explain how it's connected to your account. A good rule for starting safely: pick one small, predictable category — like gas or groceries — and pay the balance in full every month. This keeps spending manageable and builds the habit of never carrying a balance before they ever have a card of their own.
Keep in mind: Remember to keep a close eye and not let their spending creep up. This is a good time to teach them the importance of keeping the usage low relative to the limit.
4. Research student credit cards to help your child build credit at 18
At 18, your child can open credit accounts independently for the first time and if your child is over age 18 and enrolled in college, they may qualify for a student credit card. If this is their first experience with a credit card, it could be a good exercise to use this card for specific expenses like groceries and school supplies and pay the statement in full each month.
Keep in mind: Student credit cards can have higher interest rates and lower credit limits than traditional credit cards but can be easier to qualify for if your kid doesn't have an existing credit history.
5. Consider a secured credit card
Secured credit cards are another way to establish credit and are worth considering a credit card for a child under 18 who isn't yet eligible for a student card, or for a young adult just starting out. With a secured card, the account holder makes a cash deposit to act as collateral — showing the bank lender they have the money. Secured cards also can be helpful if your child needs to repair their credit.
Keep in mind: Confirm the card issuer reports to credit bureaus and research the card’s annual or monthly fees to decide if this option works for you.
Start keeping score
By taking steps to establish strong credit for your child, you can help their journey to financial independence and ease some of their big life transitions.
