At O1ne Mortgage, we believe in empowering our clients with the knowledge they need to make informed financial decisions. One of the greatest gifts you can give your children is the ability to manage their finances responsibly. From budgeting and saving to investing and understanding debt, these lessons are crucial for their future financial well-being.

Minimum Age to Be a Credit Card Authorized User

One way to teach your child about credit is by adding them as an authorized user on your credit card. However, card issuers may have age requirements for authorized users. The minimum age varies from 13 to 18, and some issuers have no minimum age requirement at all. Here are the minimum age requirements for some popular credit card companies:

• American Express: 13
• Bank of America: Not specified
• Capital One: Not specified
• Chase: Not specified
• Citi: Not specified
• Discover: 15
• U.S. Bank: 13
• Wells Fargo: 18

As you can see, the minimum age to be an authorized user generally starts at 13, but it can vary. Adding a teenage child as an authorized user can help them build credit before they turn 18 and start living independently.

How Much Does It Cost to Add an Authorized User?

In many cases, there is no cost to add an authorized user to your credit card, especially if your card has no annual fee. However, some premium cards may charge a fee, which could be $75 or more. It’s important to check with your card issuer or refer to your card member agreement to confirm any fees associated with adding an authorized user.

Should You Add Your Child as an Authorized User?

Managing a credit card is a serious responsibility. Before adding your child as an authorized user, ensure they are ready to handle this responsibility. Remember, as the primary cardholder, you are ultimately responsible for paying the bill, regardless of how much the authorized user charges on the card.

Consider adding your child as an authorized user as part of their broader financial education. It’s best to do this when they understand the importance of savings and avoiding unnecessary debt. Teenage and college years are often the most appropriate times to develop these financial skills.

Benefits of Adding Your Child as an Authorized User

There are several benefits to adding your child as an authorized user, including:

• Learning responsible money habits: Under your supervision, your child can learn how to pay off charges on time each month without incurring interest.
• Establishing credit: Adding your child as a user can help them establish credit, as your account history is added to their credit reports.
• Earning rewards: If you have a rewards credit card, any eligible purchases your child makes will earn rewards, which can add up over time.
• Accessing emergency funds: A credit card can be useful in emergencies, especially for older children. For example, if your teen’s car breaks down, their credit card can cover the repair costs.

To limit your risk, you can set a low spending limit for authorized users. This way, your child can learn to build and manage credit responsibly before venturing out on their own.

Set a Positive Credit Example for Your Child

Adding your child as an authorized user can help them build credit, but it’s important to lead by example. Ensure your account and credit are in good shape by paying the balance in full and on time each month. This helps avoid interest charges and builds a positive credit history.

Regularly monitoring your credit is also a good habit. It allows you to stay on top of your credit and track your efforts to improve your credit score. By following these practices, you can strengthen your financial health while teaching your child responsible credit habits.

Contact O1ne Mortgage for Your Mortgage Service Needs

At O1ne Mortgage, we are dedicated to helping you achieve your financial goals. Whether you’re looking to buy a new home, refinance your existing mortgage, or need advice on managing your finances, our team of experts is here to assist you. Call us today at 213-732-3074 for any mortgage service needs. Let us help you navigate the path to financial success.