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NYSoprano 02-08-06 10:13 AM

gaining credit
 
I want to help my younger sister, who's 14 build good credit. If i add her as an authorize user to my credit card, will this build her credit even if she doesn't use it? Does this hurt my credit?

VinVega 02-08-06 10:16 AM

Putting a 14 year old on a credit card won't help their credit, but it may put you in the poor house. ;)

Seriously, I have no clue.

Why would a 14 year old need credit anyway? Just curious.

FantasticVSDoom 02-08-06 11:53 AM

Dont do this!!! The best way to build up a young person's credit is to educate them about economics, budgeting, and accounting. Also, there is no reason for a 14 year old to have credit. Give her $50 bucks and tell her to start a savings and teach her that way. Co-signing and adding people on your credit is never a good idea, no matter how close or how much you love them. Learned that the hard way.

twikoff 02-08-06 11:59 AM


Originally Posted by FantasticVSDoom
Give her $50 bucks and tell her to start a savings and teach her that way. .

yep
what he said
a 14 year old doesnt need on a credit card, but learning how to work with a savings account would be beneficial

Tracer Bullet 02-08-06 12:02 PM

You can add her as an authorized user and your credit would become her credit. Don't actually give her a card.

BravesMG 02-08-06 12:03 PM

Just for a different perspective, my parents added me and my brothers to their account as soon as I turned whatever age necessary for AMEX to let them. I didn't even know they had the card, but they rotated large credit purchases (appliances, furniture, etc.) between all of our cards. When I graduated I had a decent amount of credit built up and it made getting my first apartment a million times easier. I know it helped us out a lot and gave me a jump on getting my first house a while ago.

jfoobar 02-08-06 12:12 PM

Another option is to get her a store credit card and let her use that to build credit. Being 14 and female, she may also learn a valuable lesson about the inherent pitfalls of credit when she maxes the card on clothes and shoes and then has no money to pay it back. Concurrently, you will learn a valuable lesson about the pitfalls inherent to giving a credit card to a 14 year-old girl when you have to pay the bill for her DKNY capri pants.

Remember, learning is good.

The Bus 02-08-06 06:22 PM

I think the OP is talking about just adding her name, not giving her a card, etc. In the past, adding someone as an authorized user has helped with credit. Nowadays, it's not the case. More and more credit bureaus are correctly indentifying the "authorized user" flag for accounts --- if it appears, then your score is not calculated or changed in any way.

YMMV on this one, of course.

Your best bet if you want her to open a credit account is to get a new account with both of your names (her as an auth if needed). Give her her own card. Monitor the account periodically and discuss usage vs. income and savings.

This is assuming you don't mind paying $200-500 if it's necessary to clear/pay the account.

El Scorcho 02-08-06 06:54 PM

All banks offer secured credit cards where you deposit $X amount and you get a credit card with the limit of $X. I did this when I was 16 to build credit. You make payments on the card and when the time comes to close the card, you get your $X deposit back.

fujishig 02-08-06 07:34 PM

If you close the card, though, doesn't it "disappear" off of your credit report?

When I was young (I don't think it was as young as 14, but maybe) my dad opened a cosigned CC, but he kept my card and it was only used when we were together. He gave it to me when I went to college, but I never used it without permission, and usually it was just for books or school fees or whatever. Not sure how much it helped my credit, or even taught me about responsible use, but that's the only way I would ever open up a joint account with someone else.

The Bus 02-08-06 08:00 PM


Originally Posted by fujishig
If you close the card, though, doesn't it "disappear" off of your credit report?

When I was young (I don't think it was as young as 14, but maybe) my dad opened a cosigned CC, but he kept my card and it was only used when we were together. He gave it to me when I went to college, but I never used it without permission, and usually it was just for books or school fees or whatever. Not sure how much it helped my credit, or even taught me about responsible use, but that's the only way I would ever open up a joint account with someone else.

It doesn't disappear. It shows up as Closed / Closed by Consumer and stays on the report for a long time.

fujishig 02-09-06 11:52 AM

Oh, I thought the reason you shouldn't close all of your old accounts is to make sure that they're on your credit report and give you credit history further back...

BigPete 02-09-06 12:05 PM

That is partly correct. On revolving lines of credit, like a credit card, the age of the oldest account is a factor in your score. The closed cards will still appear as closed on good terms, but they won't add to your score.

NYSoprano 02-09-06 12:40 PM


Originally Posted by TracerBullet
You can add her as an authorized user and your credit would become her credit. Don't actually give her a card.

Yea, all i want to do is add her name. She already has a savings account. Since i have good credit, i want her to start her life with good credit as oppose to no credit.

The Bus 02-09-06 07:11 PM


Originally Posted by NYSoprano
Yea, all i want to do is add her name. She already has a savings account. Since i have good credit, i want her to start her life with good credit as oppose to no credit.

That does not give her credit automatically. Read one of my first replies.


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