As a parent, you want to give your child every advantage you can to help them be successful later in life. One aspect of the future self that is often overlooked is their credit history. A good credit score can determine whether they get hired, where they live and their access to credit. Adding your kid as an authorized user on your credit card is one way to help them learn financial responsibility, build their credit score and continue the conversation about money.

Authorized User Defined

An authorized user is someone who has charging privileges on your credit card. Some credit cards also provide authorized users with many of the same benefits that the primary cardholder receives. Although the credit card’s history may report to the authorized user’s credit profile, they are not legally responsible for the debt.

Difference Between an Authorized User and a Joint Account

A joint account is an account where two or more people are legally responsible for a debt. Examples of joint accounts include mortgages, auto loans or credit cards.

In most cases, it is not possible for a joint account holder to be removed from the debt unless it is refinanced or approval is given by the creditor. By comparison, an authorized user can be removed from your credit card at any time.

Pros and Cons of Adding an Authorized User

There are many reasons why you might consider adding your child as an authorized user on your credit card. Keep in mind that there are potential consequences for both you and your child if they are added.

6 Reasons You Should Add Your Kid as an Authorized User

Teach financial responsibility. A credit card is a useful tool to help teach your child financial responsibility. As an authorized user, they are allowed to make charges to your credit card. This allows them to learn to stay within their ability to pay it off each month without incurring interest.

Give your child independence. Giving your child their own credit card gives them an opportunity to be independent with their spending. Instead of asking you for money every time they want to spend money, they can use the credit card to make the purchase.

Encourage conversations about money. Handing your kid a credit card isn’t the end of your money lesson, it is the beginning. Parents should have regular conversations with their kid about their credit card habits. Print out the statement each month and walk through the transactions. Don’t just talk, but also listen to what they have to say and encourage them to ask questions.

Build their credit history. As an authorized user, your credit card will build their credit history. The credit card usage and payment history will be added to their credit profile. This will help them when it comes time to apply for their own credit card or other types of credit.

Earn rewards for their spending. If you have a rewards credit card, every time your child makes a purchase, you’ll earn rewards. Although these purchases may be small, the rewards add up over time. Some credit cards offer benefits at certain spending levels, which means that their purchases also get you closer to meeting those hurdles. For example, the Chase’s World of Hyatt Credit Card gives a second free night each year when you spend at least $15,000.

Authorized users receive benefits. Some credit cards that offer cardholder benefits extend some of those benefits to authorized users. These benefits could include airport lounge access, rental car protection and free checked bags. The Citi® / AAdvantage® Executive World Elite Mastercard®* provides complimentary Admirals Club lounge access to all authorized users when flying on American Airlines. The Chase Sapphire Reserve® gives authorized users access to roadside assistance, which can give peace of mind when you hand your teenager the car keys.

Six Reasons You Shouldn’t Add Your Kid as an Authorized User

You’re on the hook for their spending. As the primary cardholder, you are responsible for all of the purchases that any authorized users make. It is important to stress that to your child before handing them the credit card.

They may have access to your entire credit limit. For most credit cards, authorized users can spend up to your maximum credit limit (or potentially higher). Business credit cards and American Express credit cards tend to allow you to set individual credit limits for authorized users.

It can be hard to tell who is spending what. It may be hard to differentiate their spending from yours since most banks give authorized users the same credit card number as the primary cardholder. If you add your child to a business credit card or a personal card from American Express, they will be given their own credit card number.

Their spending could affect your credit score. Your credit utilization makes up 30% of your credit score. If your child spends a lot on your credit card, your utilization could increase and reduce your credit score. This could be bad timing if you are applying for a loan or trying to refinance your home.

Some credit cards charge fees for authorized users. Not all authorized user credit cards can be added without additional cost. If you have a premium credit card, chances are that the bank charges a fee for authorized users. For example, the Chase Sapphire Reserve charges $75 for each additional user, while the Citi AAdvantage Executive World Elite Mastercard does not.

Your credit activity could hurt them. Although you are trying to help your child, adding them as an authorized user could hurt them if your finances sour. A late payment, charge-off or bankruptcy on a credit card that they are an authorized user on could place a negative mark on their credit.

Card Act of 2009 Effects on Young Adults

The authorized user strategy for young adults became even more important with the passing of the Card Act of 2009. This law made it harder for people under the age of 21 to get approved for their own credit card because it required them to be able to document their ability to repay the debt.

Since many college-age children do not have jobs, they could either become authorized users or have a parent co-sign for them in order to get a credit card. Adding your child as an authorized user is the preferable strategy because a parent can control the account. As a co-signer, the only way to be removed from the obligation is to close the credit card. Note that not all banks allow co-signers on credit cards.

Consider Setting Some Ground Rules for Your Child

It is important that you set some ground rules with your child before letting them use the authorized user credit card. This will make sure that you are both on the same page about what they can and can’t use the credit card for.

Here are some topics to discuss:

  • How much can your child spend each month?
  • What items are they allowed to purchase?
  • At which stores are they allowed to spend?
  • Is permission necessary before making a purchase?
  • How will they pay for their purchases?
  • Will they make payments to you or pay the bank directly?
  • How long will they remain an authorized user?

Also, be sure to talk about what happens if they don’t follow the rules. Will you take their credit card away or restrict their purchases somehow?

Remember, your child does not actually need to use the authorized user credit card or have possession of it for it to build their credit history. You can just add their name to the card and hold onto it for safekeeping.

However, keeping the card away from your child doesn’t help them build good credit habits or provide access to funds in an emergency. To help them build good habits while limiting your exposure, ask your credit card issuer about setting a lower credit limit on their authorized user card.

Not all banks offer this feature, but some banks, like American Express, do. With American Express, each authorized user has a separate credit card number from the primary cardholder. This makes it easy to determine which purchases were made with each card.

Bank Rules About Children as Authorized Users

Your ability to add your child as an authorized user on your credit card depends on their age and your bank’s rules.

Children who are 18 and older can be added as an authorized user without issue. But some banks may not allow children under a certain age to be added as an authorized user. Below are the minimum age requirements for some of the most popular banks.

Bank Minimum Age Required

American Express

13 years old

Bank of America

No minimum age requirement


13 years old

Capital One

No minimum age requirement


No minimum age requirement


No minimum age requirement


15 years old

US Bank

16 years old

Wells Fargo

No minimum age requirement

How to Add Your Child as an Authorized User

When you are ready to add your child as an authorized user, contact your bank. You can call them at the phone number on the back of your credit card to start the process. Some banks will allow you to add authorized users through your online dashboard.

Every bank requires different information when adding an authorized user to your credit card. You should be able to answer the following questions in case your bank asks.

  • Full name
  • Email address
  • Date of birth
  • Social security number
  • Phone number
  • Relationship to the primary cardholder
  • Mailing address
  • Citizenship

How to Remove Your Child as an Authorized User

As your child grows up and starts to build their own credit, you may want to remove them as an authorized user. But don’t rush it.

Because your credit card may have a larger line of credit and longer credit history, consider keeping them as an authorized user for a couple of years after opening their first account. This will allow your account to give their score a boost while their accounts build their own history.

When you are ready to remove your child as an authorized user, call your bank at the number on the back of your credit card. Some banks allow you to remove them online or by submitting a secure message through online banking.

Because you and your child’s credit card number may have been the same as yours, consider asking the bank for a new card number. This will prevent your child from making future charges.

Bottom Line

Adding your child as an authorized user on your credit card is like handing your child a box of matches.  If the matches are used properly, they can be used to make a fire for making some delicious S’mores. However, if used carelessly, they can burn the entire house down.  Make sure your child is ready for the responsibility of being an authorized user before you proceed.

Once you are sure your child is ready, they can reap the benefits of a jump start on credit.