How to Help Your Kids Build Credit Early (Without Giving Them a Credit Card)

Have you ever come across a life hack that was just too good not to share? Helping your child build credit early is one of those strategies that can give them a serious head start in life. Good credit makes it easier for young adults to qualify for everything from car loans and rental applications to their very first mortgage. And the best part? It’s easier to do than most people think.

Why Building Credit Early Matters

Credit history plays a huge role in financial opportunities. Lenders, landlords, and even some employers look at credit scores when making decisions. The earlier your child starts building a positive credit profile, the better positioned they’ll be as adults.

According to Experian, a major credit bureau, young adults with strong credit profiles are more likely to qualify for loans at lower interest rates, saving them thousands over time. Starting early builds not just financial access—but financial confidence.

Reference: Experian - How to Help Your Child Build Credit

Add Them as an Authorized User

One of the easiest ways to help your child begin building credit is by adding them as an authorized user on your credit card. Some credit card companies allow children as young as 13 to be added, and a few don’t have any age requirement at all. Even if you never give them the physical card, they’ll start to benefit from your credit activity—as long as:

• You make on-time payments

• You keep balances low compared to your limit

• Your credit card company reports authorized user activity to the credit bureaus

This method allows your child to begin establishing credit history without the risk of taking on debt themselves.

Reference: NerdWallet - Adding a Child as Authorized User

Teach Financial Habits That Last

The goal isn’t just to boost a credit score—it’s to teach habits that last a lifetime. Adding your child as an authorized user can be the starting point for ongoing conversations about money:

• Why on-time payments matter

• How to manage credit card balances

• Why keeping debt under control protects future goals

Once your child turns 18, they’ll be able to apply for a credit card of their own, like a student credit card. However, it’s generally a good idea to keep them as an authorized user rather than removing them. Removing them erases that helpful payment history, which can actually lower their credit score.

Reference: CFPB - Building Credit as a Young Adult

Consider Co-Signing or Joint Accounts as They Mature

As your child grows older, you might explore options like co-signing on a loan or opening a joint account. These steps come with more responsibility but also help your child learn how to manage finances with some support and guidance from you.

Just be aware that missed payments on co-signed loans or joint accounts can impact both your credit scores. So be sure it’s a step you both understand and are ready for.

Final Thoughts

Building your child’s credit might not be something they’re learning in school, but it’s one of the most powerful lessons you can teach. The earlier you start, the more opportunities they’ll have to make smart financial choices down the road.

If you’re interested in taking this step and want to make sure you do it the right way, reach out! We’d be happy to walk you through the process and help you build a plan.