@@dmargot2828 Sounds like a VA loan to me. The only time i had a Zero down in a realestate purchase was a 80/20 loan. Its two loans in one. Even FHA only went down to 3.5% DP plus closing.
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As the comments have confirmed, this can REALLY backfire if your parents aren’t on top of their credit. I like what my parents did-they taught me about credit when I left for college and got me my own credit card. I treat it like a debit card-I buy everything on it, but pay it off every week. After five years of this, I now have a credit rating in the 800’s, and my parents never had to make credit decisions for me that I didn’t consent to.
Why would anyone use credit card as credit card and not debit card is beyond me. I grew up knowing nobody extends credit to me, ever. Best financial education ever.
@@shuaibb8992 they said their parents got them the credit card so maybe they paid it off too. Behind half of the financial success stories is a parent setting them up for success, but that part is usually left out of the story. Maybe that’s not the case here though.
@@paulinabakhshayesh6644 I’m from Denmark :) There isn’t a credit score system that you can build up over time. Banks make a “credit worthiness” evaluation on a case by case basis, where they look at your income, expenses and payment history to the bank, if you have one. We have a national database for people who haven’t paid their bills, that banks and lenders have access to. You can’t get any credit if you’re registered in the database. You are registered for 2 years at a time.
I knew about this a long time ago. Truth is, you need trustworthy parents who actually set out to do this...not parents who use your pristine good credit to ruin it before you even turn 18. A lot of people have experience with the opposite. You might not even have student loans, but from the moment you turn 18 your good credit is already shot.
ive worked at a bank and the only ones ive seen do this type of behavior is the black ones. Black parents will have a bill in their childs name and default on it!!!
I did this for my son when he turned 18. A month afterwards we checked his credit score, and it was 798. You don't have to do it when they are babies, you just have to do it on a card that you've had for a longtime. I had that card at that time for 17 years with a perfect payment history and a high credit limit which I paid off every month.
Only downside is if your son applies for his own credit card he might be given a 15-20k line of credit. He could get himself into a lot of trouble and not tell u until the debt collectors are after him. You seem financially wise, u just need to make sure that wisdom gets passes down :)
Shows how messed up the system really is and how those less privileged get even further behind at no fault of their own. The child needs parents who know about this, and who has (and maintains) a good credit score of their own. It's also really messed up how a parent could essentially ruin a childs credit score without their consent. But obviously fantastic advice for those who have or are having kids!
Truth. The job I have involves people reporting ID theft, and the number of times a parent will use their kids social# to rack up bad debt because they're broke (and not fair to their kid at all) might shock you. Poor kids start adult life with awful credit sometimes.
@@Tyshkevich that's not at all what my comment is about. The fact that well-off parents can give their child a huge advantage by building good credit for them, and that other parents can ruin their childs credit score is terrible. A child can't help what family they are born into, yet their life can be ruined by bad credit. The system is wrong and is just one of the many reasons why the wealth gap is increasing. And everyone can't just get a credit card and build good credit, it requires a certain level of income and financial stability. If your parents ruined your credit score before you could even walk then there isn't much you can do about it and you get further behind. Changing the system so that parents can't do anything to their childs credit score in either direction might help a little, but even then you have children who as adults can quickly build up their credit through their parents wealth, and children who will have to take up loans to get by and have no other choice but to wreck their credit. Obviously a lot of people can build good credit that way, but some can't and others have it done for them. Anyone in a position to build good credit should do so, and if you can do it for your child as well even better for your child. But the system is favouring some, neutral to most and crippling to the rest.
Dont compare or blame yourself or your parents over this. For all we know, they hadn't known about this. Or they were warped up in other things. It is easy to be swept up in the narration of different people's experiences. You are capable of doing and becoming anything. Start your way up and you get to be proud of it ♥️♥️💃✨
@@Bleepbloopitty Your statement is correct but my parent was busy selling drugs, so for me I definitely feel a type of neglect and further w.t.f. to her. I don't even know if I have credit or not still. I'm almost 24 yet I have no clue how to know without getting scammed online and having my info spammed everywhere. I've gotten 4 different numbers but I'm still Cynthia and have all type of loans in my name like huh? Emails saying I have down payments on cars and a house, ahaha sure where are they then? I know I got a short stick in life,but knowing that doesn't make figuring out how to be an adult any easier. 😫
I'm glad my parents didn't do this to me, when I hit my mid 20's I found out from my dad that my parents were *drowning* in credit card debt my entire childhood So my credit would be fucked
Yeah my brother used my info to open credit cards, messed up my credit. to buy shit for his then was gf, fiancé, now wife. I started getting baby,formula samples, brochures, baby deals etc. when I've been celibate near a decade 😂
Unfortunately this can and does happen in some families. I’m sure at the time, the parent(s) see it as a way to avoid high deposits on things like cable or utilities if they have messed up their own credit due to job loss or other problems and they may think it is just a “ fresh start” but remember that most people are not taught much of anything about credit cards or basic finances.
Same here, put things in my name because her credit was tanked. I graduated college with a credit score in the low 400s because of her 🥴 If you want to go scorched earth, you can actually report this and there can be criminal liabilities depending on the circumstances
I love this advise for parents that know how to handle credit. My mom did something similar and it backfired. I'm not in my late 30s and JUST barely recovered from the bad snowball she started. I think I'd recommend doing this when they were in their late teens and were able to make the choice for themselves, yes I'd like your help. Or no thanks I'll handle it on my own.
IF you are a AU and the person who put you on their credit card screws up, you can contact the Bank and let them know you did not know you were a AU and want the bad credit information removed from your Credit History, you can also do this with the three main Credit reporting companies.
You can remove AU's anytime. It removes you completely from your parents card. They can do it right from the app. Within 30 days it will be taken off your credit report and will not affect your score positive or negative anymore. The only time you can get it off is if your parents used you as a cosigner on the card.
I should warn you that this may come with a caveat. This did hinder me getting a mortgage. The bank we loaned with saw I shared a credit card with my mother and said that I didn’t have enough “solo” credit. Fortunately my hubby had a decent score from paying off his student loans so we had to take it out completely in his name and mark my entire bread winner salary as “secondary income” to him. This may not happen to you, but I figured I’d warn ya just in case.
It didn’t backfire it just didn’t help, any smart credit lender can see how you acquire the credit, and the length of credit history you have, credit score is one factor of loan qualifications. Ultimately your score is higher now than it would have been, if you had not been piggybacking on a credit card from the get-go. So re think that.
@@stentualsenpai8354 Every month, use the card for basic, small things like a subscription or gas for your car or some groceries. Then, you pay off the credit card bill. You can set it to autopay which means in case you forget, it will take the money out of your account and pay the credit card bill on time. Just keep it simple. Avoid going into debt, missing your payments, or using the credit card for impulse purchases or things you know you won’t be able to pay off. When you first get it, you are only allowed a smaller amount you can use but the longer you use the card and pay the bill at the end of the month, the amount (called a line of credit) can increase so you can use the card more often. You want to usually avoid using the whole line of credit, I think I read somewhere you want to not go too much over 30 percent. I am a beginner as well and just remember these things from a class we had to take in high school.
My grandmother wasn't rich but she did this for all of her grandchildren. I am in my 40's and I am blessed because of her intelligence. 💞💞💞💪🏾✊🏾👑💯🤲🏾🤲🏾🤲🏾
Bless Your Grandmother, That Goes To Tell You!! That Your Grandmother Was A Hard Working Women That Knew What She Was Achieving While Working Job From Job!! And Paying Her Bills On Time ⏰ 💵 ⏰ 💵.. While Coming Up Not Having Much!! Like These Spoiled Rich People Have And Abused.
This works for poor folks too. I'm a child of a single parent household, father skipped on child support, grew up on state assistance. I was added as an authorized user in case he neglected to feed us or abandoned us when we were in his care. Mom was ON TOP of her finances. My credit score is amazing now thanks to her card's age and history.
Exactly!! A little elitist assuming that only rich people can do this. Even if a single mom pays only 1 bill every month with that card, and pays in full (like a utility bill or a phone bill), that will do the trick.
Exactly, not only for rich people…..everyone should do this. Now I remember an old friend who bought everything cash 💰….. he wasn’t rich, he just save until he can buy things 😊
My mom did this for me when I was in middle school, and I got to use the card for like a sandwich at Subway after cross country meets, then when I was in high school when I could drive my parents let me buy groceries for the rest of the house cause they were busy. Then I started cooking dinner every night for my fam with the groceries. By the time I finished high school I was a full grown wifey material with perfect credit 💅
@@Lwsss933 … lol I’m just saying it’s good to teach responsibility in the home to kids while they are young so the kids can grow up and handle more responsibilities for life. I’m very independent, I have a bachelors in cellular and molecular biology and went to medical school for an MD. But I can definitely appreciate the traditional homemaker role of a wife and mother like my grandma 👵 . Bless up fellow females, girl power, you can do it all !!!
Other parents misuse their kids credit and leave them in the lurch. My father did this in the early 90s while my sister studied abroad. He was dead over a year before she finally found out. Sometimes parents cannot be trusted with their kids' finances. 😔
Right, I mean that’s a great thing to know about. Now I want to do what she advice. But imagine all the parents that can do this and ruin their kids credit score…
@@raquelfigueroa5539 I know several people my age who ran into this issue... Not just my sister. I don't want to get married again because my ex killed my credit and I didn't even apply for those credit cards but it effected my score!
My parents did this and it’s amazing! They gave me the card for emergencies and if I needed to pick them up something. When I turned 18 I had an over 800 credit score already. Definitely doing this with my kids in the future!
That’s cool I didn’t even think of the kid/teen using it for emergencies. My kids aren’t teens yet so I don’t trust them with my credit cards rn lol 😅 but that’s a really good idea! I like that :) that gives peace of mind for both the kids and the parents :)
This is a scary dangerous slope tho...theres people who have used their kids names as identity theft and the kid when they get older have no way of using ANYTHING credit wise because it was so screwed up with stuff.
Signing up someone for your credit card and stealing their identity are two different things. If you tank your own account, the other who didn't sign taking on the debt can remove themselves..
My dad did this for me with his Amex card, it became my “In case of Emergencies” card when I got older and was responsible enough to handle it. When I first began using my credit myself my score was 790. Do it, you won’t regret it as long as you’re responsible and don’t miss payments. Your child WILL thank you!
You don’t need to have them on the credit line from when they’re a baby. The thing that matters is the amount of time the credit line they’re on has been open, not how long they’ve been on it. So if a credit card is opened in 2000 and they’re added in 2022, they’ll get the same benefit as they would if they had been added from 2000. After seeing this video I was thinking to add my son to my account, so I did some research and found that out. Don’t panic about adding your kids right this moment, it doesn’t make a difference when you add them, just that you add them at some point.
I did this for my sister. As soon as she turned 18 and got a card in her name, she went on a shopping spree and maxed out the card 🤷🏽♂️. She has no credit card today.
Also why idk if I’d give the authorized user a card. Just have them on the account to help their score. But you also could just teach them how to do it themselves and never put them on your card in case they do that 😭
I did this with my daughter, also opened a checking and savings account at 12. When she started working she saved for a whole year and bought a brand new car cash by 18. Has excellent credit and continues to save money. Next it's for a house. I made sure that she was informed about being responsible with money growing up so she's never going through struggles as an adult.
I wish my parents knew this was possible lol. Instead I got a debit card when I was a tween and didn't get a credit card until I was in college. I nearly maxed my credit twice due to my life situation. I have decent credit now though, because one of my parents was broke for years because of credit cards and taught me the basics of how to mange it responsibly. I'm at least thankful for that much.
I did this by accident….the credit card company sent me a pre-approved application when I was six. I filled it out with all of my own info and they still gave it to me. Parents then took it, put it in a drawer and if I wanted to buy something from a magazine that required a credit card I had to save my allowance up and pay my parents for the item. They would then let me use the card and pay it off when the bill came in. At 16, when I got my first job, I was given free reign with the card, but had build up the habit of not buying things I didn’t have the money for and paying the bill off in full. By the time I hit 18, I was in the high 700s.
My mom tried doing this for me when I was a teen. Messed my credit right up within 3 months. I'm almost 30 and the damage has finally fallen off. Thanks mom! You tried your best.
My mom discussed it with me when I was a teenager and I was so scared of having debt I turned it down. 6 years later my parents declared bankruptcy so I think I did make the right choice. I’ve gotten my score to the mid-700s from carefully planned federal student loans, bill reporting wherever possible, and a cash rewards credit card from my bank that I just used my rewards from to buy presents.
My mom did this for me when I was 12. By the time I applied for anything myself as an adult, I had impecable credit scores. I’ve done my best to keep it that way too. Thank you momma! 💗
Same, mom got me a credit card when I was in middle school. And when it was finally time for me to open up my own bank account, the lady also wanted me to apply for a credit card as well because she seen I’ve been with them for a long time and have good credit.
My parents did this when I went to college. Easier to pay a card then to send cash everytime I needed money (this was 1999). Helped me build great credit which I still benefit from today. You do not need to be rich or well off to do this!
My parents ruined my credit before I turned 18 with this same method. It was on me to fix it. It takes years to build good credit after it's been ruined. Decades, if you're not rich enough to fix it immediately.
If my mother did this it would work out in the opposite way, and realizing that sucks. It's scary to think your parents could just as easily eff up your credit score before you're conscious of your own existence and you won't find out until your older.
Exactly. And knowing how precious and sensitive credit scores can be, you want your child's score to be as high as possible. So many of us could escape generational poverty if we weren't ball and chained to it from birth.
Lmao my moms boss was 98 and she was STILL paying for her elderly kids bills, rent, travels. Her fam was foaming at the mouth for her to pass. Thats the kinds of people these kids grow up to be.
I feel like I've been living under a rock! In all my 39 years I thought I was doing pretty good at being a good parent!!! Clearly I was wrong. My kids are 22, 18, and 14 now so I can help my youngest a little but dang I wish I'd known about this sooner!
@@inthelandofmorethansmall7582 me too😂😂😂 I am 37 years old and I never heard of this! I have one kid that is 18 but I can do it for my other two who are only 11 and 13.
So this is how it happened for some teenagers/young adults on Reddit who find out they already have a trash credit history when they apply for their first credit card.
I Got to college , wanted a credit card to take advantage of frequent flier miles and was denied. So that’s how I discovered my mom never payed her credit card which had a card issued with my name on it. It was like a punch to the gut. Especially because I had to fly cross country to attend my scoop. she never rectified it either. This was before you tube and all the easily available financial information one has access to now. Sucks to be a kid with misguided narcissists as your guide/ role models. They should teach financial literacy in highschool as a side note.
This is the flip side of those parents who get their utilities in their kids' names because their own credit is dreck. And then default on the bills again. Like, way to go, giving them sh*t credit before they graduate fifth grade. Or kindergarten. And before anyone says "It's better than getting the heat or water turned off!", I'm not dissing them for the necessity of a fraudulent account (I'm well aware that shut-off fees are a bear to get paid off.) I'm dissing them for not making super sure that that fraudulent account is paid on time and in full. Identity fraud sucks eggs, but identity fraud by your parents sucks ostrich-sized ones.
My Grandma did this for me ❤ when I got my first car the lady said “I don’t believe it, let me check again” my mom (grandmother) told her “It’s RIGHT”! The lady was stunned
In the UK one thing that massively helps your credit score is being on the electoral roll (registered to vote at an address), especially if you're at the same address long term. So if your parent/s are likely to stay in one place during a time where you might move a lot, stay registered at their house. I did this during my 20s when I was moving every year, and now in my early 30s I have a really good credit score. Obviously there are other components, but this helps a lot.
That's true, but that's one of the things I hate about uk that person is being judged by staying in one place, job etc, when acctually one can have better financial prospects by moving ...
My mom did this for me. I’ll never forget walking into the ATT store to get a new phone at 19 after saving up $$$ for a deposit and the guy ran my credit and just handed me a new iPhone for nothing. I asked why I didn’t need to pay anything down and he said they ran my score and it was a 750 so no reason to 😭😂 I love you mom ❤
Credit cards are just a way to build credit so u can be approved for major loans in the future. most ppl need loans to purchase a house cuz we don’t have $300,000 in savings by the time they are ready to settle down. loans are also v important for business owners. imagine being able to sign for anything just cuz you managed credit cards will for some years. having bad credit or no credit sadly does negatively affect your chances of receiving loans, getting cars, etc
if you have a $300 cc limit, dont spend over $30 and pay the $30 back asap and then some. Pay like $45. its not a good choice for ppl w/o money to be spending it because if you cant pay it back you w be left in debt. Imo credit cards are complicated and i rlly dont want one but it can help me in the future.
You can still use that thinking and use credit cards. You treat it like a debit and buy what you’d normally buy on your debit it and then just pay it off right away. It’s only a risk if you make it that way.
Yes, my ex-daughter-in-law did the same thing to their kids. I don't know how they will ever get credit! This was after she ruined my son's credit. (Oh, he helped.)
You are completely correct! I turned 18 two months ago and already had a score in the high 700s because my father made me an authorized user when I was a toddler. This tip definitely works! And it’s the best 18th birthday gift.
I did this for both my kids and talked to them both about the responsibility of credit and they both ruined it 🤦🏽♀️ My son dug himself out but my daughter hasn’t
We can lead our horses to water... But we can't make them drink it. I understand... My son (22) has essentially taken everything I've ever given him and wasted it. We gave him a truck (an old beat up truck, like a 1989 Nissan 4 speed) and he didn't take care of it. It drove perfectly for 39 years... He had it for 1 month. Anyway, at least we did our best! The rest is up to them.
@@picachugirl2036 Multiple times... But not in the way you're thinking.. He would PURPOSELY drive it through trees and ditches and thick brush... He broke the axle, tore up the transmission, blew a gasket, busted the radiator, tore up everything under the hood and everything on the body. He was trying to show out for his friends. They would dare him to do something and he never turned down a dare. 😕🤷🏼♀️🤦🏼♀️🙄
I’m a university student who isn’t married and has no kids, nor plans on for the next 7-8 years but I’m saving this hack. With this economy, the next generation needs as much help as possible
Based on my parents' credit scores, I'd have a terrible credit score rn. Of my own free will, I have obtained a discover student card and have upped my OWN credit score to 719 as a 19 year old with no outside help. I don't buy anything that I can't immediately pay off and my limit is $500 (and i intend to keep it that way). I even have federal student loans on my credit history. The only useful thing I took from high school was from my personal finance class!
My parents did this and it helped so much renting my first apartment when i moved to nyc after college !!! also helped me get a good credit card when applying for my first one
My parents opened a bank account for me when I was only a few days old. The bank sent me cakes for my birthday for quite some time cuz I was their youngest customer lmao
I read an article on this years ago. I just recently did this for my 14 year old after realizing one of my credit cards didn't have an age requirement. Of course, my kid doesn't know about the card. I might do this for my 10 year old early. I have very good credit so I don't mind doing this for them. I grew up poor with bad credit after college and it was difficult to get an apartment. I definitely know the importance of a good credit score and I have taken good care of my credit. I am fortunate enough to be able to do this for my kids.
You don’t even need to do it that early…my dad added me to his credit card in high school - but because his credit card had been opened for 10 years already, the credit bureaus consider the age of the credit account as a factor to someone’s credit score, and that gave me a huge boost.
We did this for our three children and they had excellent credit when they were 18 years old and could buy things on their own. This was back in the 80s so it's helped them through life, to make their lives easier.
You can't. It's like people don't pay attention. She didn't say she opened a credit account for the child. She's opening a credit card for the child on HER (the parent's account). The first case would be identity theft which is illegal. The second if putting someone as a secondary on your account. Meaning. They get to benefit (leech as she said) off the good credit. If the parent tanks their credit, remember the child was only an authorized user not a primary meaning the child can dissociate from the parent and start neutral. It's why she says the child gets their own credit when they are legal. It's a win win. It's the same as with marriage. You never technically merge credits even if you add the other person on your cards, because they are just authorized users not primary. So the authorized user gets the benefits of the primary credit holder. But say if things go bad financially or a divorce, you can separate back to your individual credit identity. The only way you can tank another person's credit is if they aren't just authorized but are a joint on the card. And this is why many wise financial people tell you joint accounts at the bank are dumb. But a child cannot be a primary so thus can't ever have a joint account with a parent.
Ummm, my hard working farmer father with a spotless credit history and Uber high score, would NEVER do this. "Make your own way. Work hard, and NOT off my back". World's best dad & priceless lessons.
Respect. Imagine a world where people had to earn their own way. No trust funds, no inheritance, no college paid for by your parents , no car provided, no fake credit score, no help getting into a house, ect.. a lot of " I made it by working hard" people would be struggling.
my momma did this for me when i was a teenager. my credit score rn at 22 is pretty sexy lol. if i ever have kids, I'll definitely do the same around the same time she did for me 😁
I postponed and did it alone at 23years after I had a good job. Now 25 and have a 760 credit score. Its okay if you don’t start so young. Everything works out Edit: You can rent an apartment without a credit score. Just leave more deposit money
we did this when i was 17/18- i’d run errands and buy our groceries using my credit card and my mom would pay the bills. by the time i was ready to move out at 19 i had a great score 😄
My dad did this and then he started taking out cards under my name. (Back in the 90s with paper forms was a lot easier) I would be so confused as a child, when debt collectors would call the house phone to say that I owed money. Thank god, I got into finance and as soon as I turned 18, I started fixing my credit.
I did this for my teenager so he'd have a card on him for emergencies. When he started applying for financial aid for college, his credit score was in the 800s. Even better, I taught him about the "score" which instantly made him competitive, so I feel confident he takes pride in his credit score and will maintain it.
Yes, I’ve done this for my children but wish I started it when they were babies. I thought they had to be at least 12 so that is what I did. The older ones are now 18 and 19, my 14 year old hasn’t been on there long.
My mom maxed out cards in my name and overdrew my school savings program account many times before I was out of 6th year. This video made me so jealous I could cry. At least I will do better and now know to do this for my future kids 💔
Uh how? That's the opposite of how it should work. The point of a credit score is to communicate to lenders how good of an investment you are, so student loans can actually be really good for your credit. Unless you aren't able to pay them off or you pay them off in a lump sum instead of monthly...the former means creditors aren't getting their money back, the latter means they won't get as much as they could from the interest you'd accrue with monthly payments. Outside of those situations, you're showing creditors you'll be doing exactly what they want, so your score should go up. In a vacuum, at least, cuz there are lots of other things in your life that can affect your score.
You don’t need money to get a credit card though. Use Credit Karma (or other websites) to explore credit cards. Just apply for one that has no annual fee and what it says you qualify for. If you don’t get approved, you can do a secured credit card.
We poor and only my husband has a credit card and I don't. I don't recommend having a credit card because it only builds on debts. So you don't need it. We poor too. It's better to use cash and bank card for what u need.
@@lilacfairy. it only builds debt if you can't pay it off. Note: get a credit card with no annual fee, and always pay off your credit immediately. Don't spend more than you have in the bank. Your score will improve, you'll have cashback and benefits, and you'll have a credit history.
@@raquellalisa7296 Credit Karma has awful credit cards and they lie about your credit score and what is even on your report! Please check other sources!
@@lilacfairy. you just have to use it correctly your probably using your credit AND debit card when you should only be using your credit card as your debit card and paying it off in full every month.
I’ll be teaching my kid to not borrow money. As Dave Ramsey says: a good credit score just means you’re good at paying interest. I’d rather build wealth than credit.
Please don’t. My dad put me through the Dave Ramsey course and it screwed me as an adult. I knew NOTHING about credit which meant when I did venture out into credit I did everything WRONG because I was only taught to not use it. Not HOW to use it. Also the world functions with credit, you want a car? Unless you can pay full cash you need a credit score to finance it. Even renting they want your credit score to determine if they’ll rent to you. Then there’s buying a house if you want to do that. You NEED a credit score unless you’re RICH enough to pay everything in cash. That’s what most people miss when they follow Dave Ramsey. HE has the cash to pay cash all the time. Most Americans don’t. Anyways point being you need to learn how to use credit to really function in this world unless you’re already rich enough to pay cash.
We don't have that in my country but we can do something similar with bonus points on car insurance. When you are a young driver, you pay full insurance but over years without accident, you gain a percentage of discount, up to 50%. So when my son had his licence, he didn't have a car on his name but on mine, so I pay the insurance with 50% bonus, and he is registered as a second driver. After 2 years, he can buy his own car using my bonus. It's known for a while. I gained my own bonus by driving my husband's car in the 90's, and he gained his own bonus by driving his father's car in the 80's.
My mom made me wary of ccs so I didn't get my first until 25. Got a good job at 18 that led me into promotions easily. Even though I was making good money I had no credit and couldn't get a car. I'm not rich but I'm going to start my kids better. 1 will have 10 years of credit history and the other will have 17 years. I don't want them to struggle like I did.
My mom and dad did this for me in my mid teens. And even though I’ve kinda tanked my credit because while being a broke college student living on my own I wasn’t making enough to support myself I still have a higher score than many of me peers who’s parents didn’t know to do this
I didn’t know about this until my kids were teenagers. But they have cards now and are responsible with them. Put all the kids on one card and I can see individual transactions so I I know who charged what so they can pay for their stuff. It’s worked out really well. Wish I had done that for my oldest
We can't do things unless we know about them. Showing that you started doing what you could as soon as you learned about it is better than saying, "Well, my oldest is already an adult, I guess I won't help my other kids either." I'm just learning about this TODAY. No one in my family ever heard of this. I didn't even know you COULD build someone else's credit. 🤷🏼♀️ My kids are 22, 18, and 14. (I'm 39) So I guess I'll start this for my youngest one... As unfortunate as it is that I can't go back in time, it's just something I have to accept.
You don't have to do that early Read some of the comments I don't know how old your kids are but it's never too late You can do this also when they are already in highschool
Scary that there’s no age requirements… my good friend of 20+ years had her credit destroyed by her alcoholic mother and when she turned 18 saw she was a ghost in the market bc no one would set her up with anything.
Renting your first apartment is never a problem without having no credit or new credit… most of ppl I went to high school with got their fist apartment or rental home with no issues unless their parents used their name when they were younger
It is a problem. You will lose access to so many places without good credit. Can you still rent? Sure, but it will most likely not be where you want, much less a good price. I still remember when I was fresh out of high school, applying everywhere for an apartment, and every place citing lack of credit as a reason for the rejection. Eventually I was accepted in a shitty neighborhood where I was forced to stay for next 3 years of my life... 😃
My mom did this when I was a teenager for me. By my early 20s I had a top tier credit score.
Hehe, we don’t have credit scores here-
@@IveAlwaysBeenAWoman … then, girl, you can’t sit with us. 💅
@@smokymountainangoras 😐
@@smokymountainangoras you have no friend..
@@em_1308 relax 💀 literally nobody can have fun anymore
Mom did this for me… I was 22 but it still worked because her credit score is in the 800s. I was able to purchase my first house with nothing down.
PMI is an unnecessary expense.
Yea, piggy backing can be done at any time. Its based in how long the card has been opened and if it is in good standing.
With zero down?!? As a poor person, i've never even heard of this.
@@dmargot2828 Sounds like a VA loan to me. The only time i had a Zero down in a realestate purchase was a 80/20 loan. Its two loans in one. Even FHA only went down to 3.5% DP plus closing.
Score had no expire? We call it point here and its expire in 2yr if not used 😂😂😂
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As the comments have confirmed, this can REALLY backfire if your parents aren’t on top of their credit.
I like what my parents did-they taught me about credit when I left for college and got me my own credit card. I treat it like a debit card-I buy everything on it, but pay it off every week. After five years of this, I now have a credit rating in the 800’s, and my parents never had to make credit decisions for me that I didn’t consent to.
Why would anyone use credit card as credit card and not debit card is beyond me. I grew up knowing nobody extends credit to me, ever. Best financial education ever.
May I ask how you pay off ur credit card during college as a full time student???
@@shuaibb8992 they said their parents got them the credit card so maybe they paid it off too. Behind half of the financial success stories is a parent setting them up for success, but that part is usually left out of the story. Maybe that’s not the case here though.
Fuck yeah consumerism let’s get on that treadmill
@@migdalskiy Because people dont know any better? Its not like anyone teaches you how to use money wisely.
Me from a country that doesn’t use credit scores: “Interesting…”
Same 😂
I know Right!! 😳😳🥺
Lucky lol
If you are from Europe - you might not be even aware that your country is using credit score ...
@@paulinabakhshayesh6644 I’m from Denmark :)
There isn’t a credit score system that you can build up over time. Banks make a “credit worthiness” evaluation on a case by case basis, where they look at your income, expenses and payment history to the bank, if you have one. We have a national database for people who haven’t paid their bills, that banks and lenders have access to. You can’t get any credit if you’re registered in the database. You are registered for 2 years at a time.
I knew about this a long time ago. Truth is, you need trustworthy parents who actually set out to do this...not parents who use your pristine good credit to ruin it before you even turn 18. A lot of people have experience with the opposite. You might not even have student loans, but from the moment you turn 18 your good credit is already shot.
Even worse is how parents will put bills in their kid's names and not pay them. Believe it or not utility companies don't easily forgive that stuff.
@@CynHicks There needs to be a 2 minute background check so that whenever this happens the person can look and say…”hey, this ain’t you…”
@@LoveAndSnapple Why would people with generational wealth care to protect the credit of those without? In a system "they created and maintain."
ive worked at a bank and the only ones ive seen do this type of behavior is the black ones. Black parents will have a bill in their childs name and default on it!!!
Yup my parents had and still have terrible credit so I’m thankful they never put my name on anything
I did this for my son when he turned 18. A month afterwards we checked his credit score, and it was 798. You don't have to do it when they are babies, you just have to do it on a card that you've had for a longtime. I had that card at that time for 17 years with a perfect payment history and a high credit limit which I paid off every month.
Exactly. The credit score is based on age of accounts
same!
Thanks for the info
Same! I did it for my best friends little bro and after a month or two his score was 780+
Only downside is if your son applies for his own credit card he might be given a 15-20k line of credit. He could get himself into a lot of trouble and not tell u until the debt collectors are after him. You seem financially wise, u just need to make sure that wisdom gets passes down :)
Shows how messed up the system really is and how those less privileged get even further behind at no fault of their own. The child needs parents who know about this, and who has (and maintains) a good credit score of their own. It's also really messed up how a parent could essentially ruin a childs credit score without their consent.
But obviously fantastic advice for those who have or are having kids!
Truth. The job I have involves people reporting ID theft, and the number of times a parent will use their kids social# to rack up bad debt because they're broke (and not fair to their kid at all) might shock you. Poor kids start adult life with awful credit sometimes.
The whole concept of a credit score is a scam
Well if you're broke you can still get a card... it just takes time to build credit. Just don't be bad with money.
@@Tyshkevich that's not at all what my comment is about. The fact that well-off parents can give their child a huge advantage by building good credit for them, and that other parents can ruin their childs credit score is terrible. A child can't help what family they are born into, yet their life can be ruined by bad credit. The system is wrong and is just one of the many reasons why the wealth gap is increasing. And everyone can't just get a credit card and build good credit, it requires a certain level of income and financial stability. If your parents ruined your credit score before you could even walk then there isn't much you can do about it and you get further behind. Changing the system so that parents can't do anything to their childs credit score in either direction might help a little, but even then you have children who as adults can quickly build up their credit through their parents wealth, and children who will have to take up loans to get by and have no other choice but to wreck their credit.
Obviously a lot of people can build good credit that way, but some can't and others have it done for them. Anyone in a position to build good credit should do so, and if you can do it for your child as well even better for your child. But the system is favouring some, neutral to most and crippling to the rest.
Less privledged? Anyone can do this for their kid.
This makes me feel a type of parental neglect I didn't know I received.
Dont compare or blame yourself or your parents over this. For all we know, they hadn't known about this. Or they were warped up in other things. It is easy to be swept up in the narration of different people's experiences. You are capable of doing and becoming anything. Start your way up and you get to be proud of it ♥️♥️💃✨
Same. It's worse when they had the knowledge but voluntarily withheld that wisdom and gave you nothing.
@@Bleepbloopitty Your statement is correct but my parent was busy selling drugs, so for me I definitely feel a type of neglect and further w.t.f. to her. I don't even know if I have credit or not still. I'm almost 24 yet I have no clue how to know without getting scammed online and having my info spammed everywhere. I've gotten 4 different numbers but I'm still Cynthia and have all type of loans in my name like huh? Emails saying I have down payments on cars and a house, ahaha sure where are they then? I know I got a short stick in life,but knowing that doesn't make figuring out how to be an adult any easier. 😫
I'm glad my parents didn't do this to me, when I hit my mid 20's I found out from my dad that my parents were *drowning* in credit card debt my entire childhood
So my credit would be fucked
When you’re parents took from you instead of doing this stuff 😮
My mom messed up my credit before I was out of high school. Who'da known good parents do it the other way around.
I was wondering if this would get used the other way around
Of course it does I guess
Can you rebuild good credit?
Yeah my brother used my info to open credit cards, messed up my credit. to buy shit for his then was gf, fiancé, now wife. I started getting baby,formula samples, brochures, baby deals etc. when I've been celibate near a decade 😂
Was thinking the same thing. So did my mom. But to this day she won’t admit it. She’s a sad excuse for a mom
Unfortunately this can and does happen in some families. I’m sure at the time, the parent(s) see it as a way to avoid high deposits on things like cable or utilities if they have messed up their own credit due to job loss or other problems and they may think it is just a “ fresh start” but remember that most people are not taught much of anything about credit cards or basic finances.
Same here, put things in my name because her credit was tanked. I graduated college with a credit score in the low 400s because of her 🥴 If you want to go scorched earth, you can actually report this and there can be criminal liabilities depending on the circumstances
I love this advise for parents that know how to handle credit. My mom did something similar and it backfired. I'm not in my late 30s and JUST barely recovered from the bad snowball she started.
I think I'd recommend doing this when they were in their late teens and were able to make the choice for themselves, yes I'd like your help. Or no thanks I'll handle it on my own.
IF you are a AU and the person who put you on their credit card screws up, you can contact the Bank and let them know you did not know you were a AU and want the bad credit information removed from your Credit History, you can also do this with the three main Credit reporting companies.
You can remove AU's anytime. It removes you completely from your parents card. They can do it right from the app.
Within 30 days it will be taken off your credit report and will not affect your score positive or negative anymore.
The only time you can get it off is if your parents used you as a cosigner on the card.
@@richalaresellers Preach.. Everyone on here talking about something they know nothing about. You’ve got your facts straight!
I should warn you that this may come with a caveat. This did hinder me getting a mortgage. The bank we loaned with saw I shared a credit card with my mother and said that I didn’t have enough “solo” credit. Fortunately my hubby had a decent score from paying off his student loans so we had to take it out completely in his name and mark my entire bread winner salary as “secondary income” to him. This may not happen to you, but I figured I’d warn ya just in case.
What age were you when you applied for the mortgage? How long did you have your own credit when you applied for the mortgage?
It didn’t backfire it just didn’t help, any smart credit lender can see how you acquire the credit, and the length of credit history you have, credit score is one factor of loan qualifications. Ultimately your score is higher now than it would have been, if you had not been piggybacking on a credit card from the get-go. So re think that.
I can confirm this is true. I added my sister (because I wanted to give her a card for emergencies) and voila, she had a 750 score at age 19
hi, was your sister already in high school when you added her?
My score was that too without someone helping me and only having a credit history for one year.
How do you build your credit score?
@@stentualsenpai8354 Every month, use the card for basic, small things like a subscription or gas for your car or some groceries. Then, you pay off the credit card bill. You can set it to autopay which means in case you forget, it will take the money out of your account and pay the credit card bill on time. Just keep it simple. Avoid going into debt, missing your payments, or using the credit card for impulse purchases or things you know you won’t be able to pay off. When you first get it, you are only allowed a smaller amount you can use but the longer you use the card and pay the bill at the end of the month, the amount (called a line of credit) can increase so you can use the card more often. You want to usually avoid using the whole line of credit, I think I read somewhere you want to not go too much over 30 percent. I am a beginner as well and just remember these things from a class we had to take in high school.
@@lolaloves6574 Thanks ☺️
My grandmother wasn't rich but she did this for all of her grandchildren. I am in my 40's and I am blessed because of her intelligence. 💞💞💞💪🏾✊🏾👑💯🤲🏾🤲🏾🤲🏾
We love to see it✊🏾😤
🤑
Yesss!!! ❤👏🏾👏🏾👏🏾
Rich people don’t use usually credit cards and a lot of their credit scores are trash, because they don’t need it. You have an amazing grandma.
Bless Your Grandmother, That Goes To Tell You!! That Your Grandmother Was A Hard Working Women That Knew What She Was Achieving While Working Job From Job!! And Paying Her Bills On Time ⏰ 💵 ⏰ 💵.. While Coming Up Not Having Much!! Like These Spoiled Rich People Have And Abused.
This works for poor folks too. I'm a child of a single parent household, father skipped on child support, grew up on state assistance. I was added as an authorized user in case he neglected to feed us or abandoned us when we were in his care. Mom was ON TOP of her finances. My credit score is amazing now thanks to her card's age and history.
Exactly!! A little elitist assuming that only rich people can do this. Even if a single mom pays only 1 bill every month with that card, and pays in full (like a utility bill or a phone bill), that will do the trick.
Exactly, not only for rich people…..everyone should do this. Now I remember an old friend who bought everything cash 💰….. he wasn’t rich, he just save until he can buy things 😊
My parents put stuff in my name as a kid, but did it because they already messed their own credit up. lol
Damn that's sucks! I'm sorry
I’m afraid of this happening to me I’m almost 18 and don’t know how to stop this from happening
My mom did this for me when I was in middle school, and I got to use the card for like a sandwich at Subway after cross country meets, then when I was in high school when I could drive my parents let me buy groceries for the rest of the house cause they were busy. Then I started cooking dinner every night for my fam with the groceries. By the time I finished high school I was a full grown wifey material with perfect credit 💅
Wifey material? 😧 Girl why would you even-
@@Lwsss933 … lol I’m just saying it’s good to teach responsibility in the home to kids while they are young so the kids can grow up and handle more responsibilities for life. I’m very independent, I have a bachelors in cellular and molecular biology and went to medical school for an MD. But I can definitely appreciate the traditional homemaker role of a wife and mother like my grandma 👵 . Bless up fellow females, girl power, you can do it all !!!
Great except that damn wife comment 🙄
@@mikejackson7881 stay salty my friend
@@OreoLambROBLOX stay ignorant 🙄
Other parents misuse their kids credit and leave them in the lurch. My father did this in the early 90s while my sister studied abroad. He was dead over a year before she finally found out. Sometimes parents cannot be trusted with their kids' finances. 😔
I honestly think this should be illegal. A credit score measures YOUR financial responsibility NOT YOUR PARENTS! That's borderline cheating.
Right, I mean that’s a great thing to know about. Now I want to do what she advice. But imagine all the parents that can do this and ruin their kids credit score…
@@raquelfigueroa5539 I know several people my age who ran into this issue... Not just my sister. I don't want to get married again because my ex killed my credit and I didn't even apply for those credit cards but it effected my score!
@@aggiewitsend7206 how?
@@kareta24 How what? What are you asking me?
My parents did this and it’s amazing! They gave me the card for emergencies and if I needed to pick them up something. When I turned 18 I had an over 800 credit score already. Definitely doing this with my kids in the future!
That’s cool I didn’t even think of the kid/teen using it for emergencies. My kids aren’t teens yet so I don’t trust them with my credit cards rn lol 😅 but that’s a really good idea! I like that :) that gives peace of mind for both the kids and the parents :)
If those "you can afford your first house just like I did" articles were straight and honest 😂👌
This is a scary dangerous slope tho...theres people who have used their kids names as identity theft and the kid when they get older have no way of using ANYTHING credit wise because it was so screwed up with stuff.
it all depends on the people who use it, the company bassicly just wanted to help...🤗
Signing up someone for your credit card and stealing their identity are two different things. If you tank your own account, the other who didn't sign taking on the debt can remove themselves..
Same with kids abusing credit cards. Hence why parents don’t trust them.
Dude if you put your kid as an authorized user and make payments you’re not gonna get scammed bro …
Authorized users don't take on the debt. It's the owner of the credit card that takes on debt
My dad did this for me with his Amex card, it became my “In case of Emergencies” card when I got older and was responsible enough to handle it. When I first began using my credit myself my score was 790. Do it, you won’t regret it as long as you’re responsible and don’t miss payments. Your child WILL thank you!
You don’t need to have them on the credit line from when they’re a baby. The thing that matters is the amount of time the credit line they’re on has been open, not how long they’ve been on it.
So if a credit card is opened in 2000 and they’re added in 2022, they’ll get the same benefit as they would if they had been added from 2000.
After seeing this video I was thinking to add my son to my account, so I did some research and found that out. Don’t panic about adding your kids right this moment, it doesn’t make a difference when you add them, just that you add them at some point.
I did this for my sister. As soon as she turned 18 and got a card in her name, she went on a shopping spree and maxed out the card 🤷🏽♂️. She has no credit card today.
Probably a good thing she doesnt.
Thats why people need to teach to only spend 30% of the credit limit at max then pay it off every month
Also why idk if I’d give the authorized user a card. Just have them on the account to help their score. But you also could just teach them how to do it themselves and never put them on your card in case they do that 😭
I did this with my daughter, also opened a checking and savings account at 12. When she started working she saved for a whole year and bought a brand new car cash by 18. Has excellent credit and continues to save money. Next it's for a house.
I made sure that she was informed about being responsible with money growing up so she's never going through struggles as an adult.
My mom’s graduation gift to me was a credit score near 800, can’t thank her enough for that! It’s helped so much!
What credit score use for? I dont think theres something like that on my bank
I wish my parents knew this was possible lol. Instead I got a debit card when I was a tween and didn't get a credit card until I was in college. I nearly maxed my credit twice due to my life situation. I have decent credit now though, because one of my parents was broke for years because of credit cards and taught me the basics of how to mange it responsibly. I'm at least thankful for that much.
I did this by accident….the credit card company sent me a pre-approved application when I was six. I filled it out with all of my own info and they still gave it to me. Parents then took it, put it in a drawer and if I wanted to buy something from a magazine that required a credit card I had to save my allowance up and pay my parents for the item. They would then let me use the card and pay it off when the bill came in. At 16, when I got my first job, I was given free reign with the card, but had build up the habit of not buying things I didn’t have the money for and paying the bill off in full. By the time I hit 18, I was in the high 700s.
My mom curated outstanding credit for 5 black children. I appreciate that woman more than she knows
Thank her before it’s late. Trust me you will regret it.
Wow, your mom is a unicorn... wish my mom did this
This is what my parents did to me. Graduated college debt free and a credit history of 20+ years.
Graduating debt free, at least in America, just means you had a way to pay your college.
Has nothing to do with credit scores.
Damn that privilege tho 😭😭
My mom tried doing this for me when I was a teen. Messed my credit right up within 3 months. I'm almost 30 and the damage has finally fallen off. Thanks mom! You tried your best.
Gyat damn I’m sorry😮
What was the mistake made? I would love to learn from your experience
@@selmanuzun She missed credit card payments and a car payment that I was on for building my credit score, all back to back.
@@emanresu3683 oh wow.. good to keep in mind, it comes with responsibilities
My mom discussed it with me when I was a teenager and I was so scared of having debt I turned it down. 6 years later my parents declared bankruptcy so I think I did make the right choice. I’ve gotten my score to the mid-700s from carefully planned federal student loans, bill reporting wherever possible, and a cash rewards credit card from my bank that I just used my rewards from to buy presents.
My mom did this for me when I was 12. By the time I applied for anything myself as an adult, I had impecable credit scores. I’ve done my best to keep it that way too. Thank you momma! 💗
My dad did this for me and I didn't even know until I applied for my first credit card and checked my credit score. Very grateful! 🤗
Same, mom got me a credit card when I was in middle school. And when it was finally time for me to open up my own bank account, the lady also wanted me to apply for a credit card as well because she seen I’ve been with them for a long time and have good credit.
My parents did this when I went to college. Easier to pay a card then to send cash everytime I needed money (this was 1999). Helped me build great credit which I still benefit from today. You do not need to be rich or well off to do this!
We did this for all five of our kids and when they moved out with perfect credit, they were thankful
My parents ruined my credit before I turned 18 with this same method. It was on me to fix it. It takes years to build good credit after it's been ruined. Decades, if you're not rich enough to fix it immediately.
Hi. What are some things you did to fix your credit. Thanks
Everything falls off your credit score within 10 years, so it shouldn't take decades.
If my mother did this it would work out in the opposite way, and realizing that sucks. It's scary to think your parents could just as easily eff up your credit score before you're conscious of your own existence and you won't find out until your older.
Exactly. And knowing how precious and sensitive credit scores can be, you want your child's score to be as high as possible. So many of us could escape generational poverty if we weren't ball and chained to it from birth.
Yeah but the credit companies know this , otherwise they would change it … it’s a high society advantage … rich get richer and poor stay poor 🙄
Key is TEACHING them to KEEP the high score! Cause once you do it for them, they don't care as teens!
Lmao my moms boss was 98 and she was STILL paying for her elderly kids bills, rent, travels. Her fam was foaming at the mouth for her to pass. Thats the kinds of people these kids grow up to be.
if you do this make sure you freeze your kids credit and check their reports at least annually
If you DON'T do this: Freeze your kids credit score & check their reports annually.
I feel like I've been living under a rock!
In all my 39 years I thought I was doing pretty good at being a good parent!!!
Clearly I was wrong.
My kids are 22, 18, and 14 now so I can help my youngest a little but dang I wish I'd known about this sooner!
@@inthelandofmorethansmall7582 me too😂😂😂 I am 37 years old and I never heard of this! I have one kid that is 18 but I can do it for my other two who are only 11 and 13.
didn't get it.. what did you mean?
@@iloveprivacy8167 what do you mean? 🤔
So this is how it happened for some teenagers/young adults on Reddit who find out they already have a trash credit history when they apply for their first credit card.
It’s so easy to do, it really makes you wonder why it’s even legal to fuck up someone’s life like that
I Got to college , wanted a credit card to take advantage of frequent flier miles and was denied. So that’s how I discovered my mom never payed her credit card which had a card issued with my name on it. It was like a punch to the gut. Especially because I had to fly cross country to attend my scoop. she never rectified it either. This was before you tube and all the easily available financial information one has access to now. Sucks to be a kid with misguided narcissists as your guide/ role models. They should teach financial literacy in highschool as a side note.
Can't you even sue them or something? Either the bank or parents?
This is the flip side of those parents who get their utilities in their kids' names because their own credit is dreck. And then default on the bills again. Like, way to go, giving them sh*t credit before they graduate fifth grade. Or kindergarten.
And before anyone says "It's better than getting the heat or water turned off!", I'm not dissing them for the necessity of a fraudulent account (I'm well aware that shut-off fees are a bear to get paid off.) I'm dissing them for not making super sure that that fraudulent account is paid on time and in full. Identity fraud sucks eggs, but identity fraud by your parents sucks ostrich-sized ones.
"help them benefit from my good credit score" Hah! 😂 My kids that aren't even born yet are fuckkkedd
My Grandma did this for me ❤ when I got my first car the lady said “I don’t believe it, let me check again” my mom (grandmother) told her “It’s RIGHT”! The lady was stunned
Was she too stunned to speak???
In the UK one thing that massively helps your credit score is being on the electoral roll (registered to vote at an address), especially if you're at the same address long term. So if your parent/s are likely to stay in one place during a time where you might move a lot, stay registered at their house. I did this during my 20s when I was moving every year, and now in my early 30s I have a really good credit score. Obviously there are other components, but this helps a lot.
That's true, but that's one of the things I hate about uk that person is being judged by staying in one place, job etc, when acctually one can have better financial prospects by moving ...
@@paulinabakhshayesh6644 for sure, I didn't say it was fair. The system is shitty, so do whatever you can to play it to your advantage.
My mom did this for me. I’ll never forget walking into the ATT store to get a new phone at 19 after saving up $$$ for a deposit and the guy ran my credit and just handed me a new iPhone for nothing. I asked why I didn’t need to pay anything down and he said they ran my score and it was a 750 so no reason to 😭😂 I love you mom ❤
I dont have credit cards. I was taught if you cant buy it in cash you dont need to have it 🤷♀️ Never had a credit card lol
Credit cards are just a way to build credit so u can be approved for major loans in the future. most ppl need loans to purchase a house cuz we don’t have $300,000 in savings by the time they are ready to settle down. loans are also v important for business owners. imagine being able to sign for anything just cuz you managed credit cards will for some years. having bad credit or no credit sadly does negatively affect your chances of receiving loans, getting cars, etc
if you have a $300 cc limit, dont spend over $30 and pay the $30 back asap and then some. Pay like $45. its not a good choice for ppl w/o money to be spending it because if you cant pay it back you w be left in debt. Imo credit cards are complicated and i rlly dont want one but it can help me in the future.
You can still use that thinking and use credit cards. You treat it like a debit and buy what you’d normally buy on your debit it and then just pay it off right away. It’s only a risk if you make it that way.
Im not rich but I have perfect credit. My daughter is set for life.
My parents put my name on their bills and it lowered my credit score.
Mine too. Thank God I overcame that mess over the years.
😅😅🤣🤣😂😂
Ha. Me too.
Yes, my ex-daughter-in-law did the same thing to their kids. I don't know how they will ever get credit! This was after she ruined my son's credit. (Oh, he helped.)
They suck!
I tried to get my mom to do this and he yelled at me saying “it was illegal” and that I was a criminal without even hearing me out. My mom sucks
You are completely correct! I turned 18 two months ago and already had a score in the high 700s because my father made me an authorized user when I was a toddler. This tip definitely works! And it’s the best 18th birthday gift.
I did this for both my kids and talked to them both about the responsibility of credit and they both ruined it 🤦🏽♀️ My son dug himself out but my daughter hasn’t
We can lead our horses to water...
But we can't make them drink it.
I understand... My son (22) has essentially taken everything I've ever given him and wasted it.
We gave him a truck (an old beat up truck, like a 1989 Nissan 4 speed) and he didn't take care of it. It drove perfectly for 39 years...
He had it for 1 month.
Anyway, at least we did our best! The rest is up to them.
@@inthelandofmorethansmall7582 Did he crash?
@@picachugirl2036 Multiple times...
But not in the way you're thinking..
He would PURPOSELY drive it through trees and ditches and thick brush...
He broke the axle, tore up the transmission, blew a gasket, busted the radiator, tore up everything under the hood and everything on the body.
He was trying to show out for his friends.
They would dare him to do something and he never turned down a dare.
😕🤷🏼♀️🤦🏼♀️🙄
@@inthelandofmorethansmall7582 the beauty of having kids....
Yuuuuppp im 23 years old with 15 years of good credit history and now I’m in the 800s. Thank you mommyyyy
She just taught you how to pay off debt. Should have taught you to live wthout it.
Do you still pay your mother’s debts?
@@sobeliever1638 tf are you talking about? People with brains pay off their card balance in full each month, so there's no debt.
@@sobeliever1638 Think before you post please.
I’m a university student who isn’t married and has no kids, nor plans on for the next 7-8 years but I’m saving this hack. With this economy, the next generation needs as much help as possible
Based on my parents' credit scores, I'd have a terrible credit score rn. Of my own free will, I have obtained a discover student card and have upped my OWN credit score to 719 as a 19 year old with no outside help. I don't buy anything that I can't immediately pay off and my limit is $500 (and i intend to keep it that way). I even have federal student loans on my credit history. The only useful thing I took from high school was from my personal finance class!
My parents did this and it helped so much renting my first apartment when i moved to nyc after college !!! also helped me get a good credit card when applying for my first one
My parents opened a bank account for me when I was only a few days old. The bank sent me cakes for my birthday for quite some time cuz I was their youngest customer lmao
I read an article on this years ago. I just recently did this for my 14 year old after realizing one of my credit cards didn't have an age requirement. Of course, my kid doesn't know about the card. I might do this for my 10 year old early. I have very good credit so I don't mind doing this for them. I grew up poor with bad credit after college and it was difficult to get an apartment. I definitely know the importance of a good credit score and I have taken good care of my credit. I am fortunate enough to be able to do this for my kids.
I did this for my two sons. One of them has scores in the high 700’s and low 800’s. He’s only 20.
You don’t even need to do it that early…my dad added me to his credit card in high school - but because his credit card had been opened for 10 years already, the credit bureaus consider the age of the credit account as a factor to someone’s credit score, and that gave me a huge boost.
i know a lot of people whose parents ruined their credit because of this.
this is why "rich" parents do it, I guess lol
Exactly why this practice should be illegal!
@@jjk4891 no, you just have to be responsible. Rich or not
My parents did this for my brother, he never moved out..
😂
We did this for our three children and they had excellent credit when they were 18 years old and could buy things on their own. This was back in the 80s so it's helped them through life, to make their lives easier.
Imagine doing this and absolutely TANKING their credit score
You can't. It's like people don't pay attention. She didn't say she opened a credit account for the child. She's opening a credit card for the child on HER (the parent's account). The first case would be identity theft which is illegal. The second if putting someone as a secondary on your account. Meaning. They get to benefit (leech as she said) off the good credit. If the parent tanks their credit, remember the child was only an authorized user not a primary meaning the child can dissociate from the parent and start neutral. It's why she says the child gets their own credit when they are legal. It's a win win.
It's the same as with marriage. You never technically merge credits even if you add the other person on your cards, because they are just authorized users not primary. So the authorized user gets the benefits of the primary credit holder. But say if things go bad financially or a divorce, you can separate back to your individual credit identity.
The only way you can tank another person's credit is if they aren't just authorized but are a joint on the card. And this is why many wise financial people tell you joint accounts at the bank are dumb. But a child cannot be a primary so thus can't ever have a joint account with a parent.
Ummm, my hard working farmer father with a spotless credit history and Uber high score, would NEVER do this. "Make your own way. Work hard, and NOT off my back". World's best dad & priceless lessons.
Respect. Imagine a world where people had to earn their own way. No trust funds, no inheritance, no college paid for by your parents , no car provided, no fake credit score, no help getting into a house, ect.. a lot of " I made it by working hard" people would be struggling.
My dad did this, and I am so thankful.
my momma did this for me when i was a teenager. my credit score rn at 22 is pretty sexy lol. if i ever have kids, I'll definitely do the same around the same time she did for me 😁
I postponed and did it alone at 23years after I had a good job. Now 25 and have a 760 credit score. Its okay if you don’t start so young. Everything works out
Edit: You can rent an apartment without a credit score. Just leave more deposit money
we did this when i was 17/18- i’d run errands and buy our groceries using my credit card and my mom would pay the bills. by the time i was ready to move out at 19 i had a great score 😄
My dad did this and then he started taking out cards under my name. (Back in the 90s with paper forms was a lot easier) I would be so confused as a child, when debt collectors would call the house phone to say that I owed money. Thank god, I got into finance and as soon as I turned 18, I started fixing my credit.
I did this for my teenager so he'd have a card on him for emergencies. When he started applying for financial aid for college, his credit score was in the 800s. Even better, I taught him about the "score" which instantly made him competitive, so I feel confident he takes pride in his credit score and will maintain it.
No one did it for me. I did it for myself. But I wish my parents or the elders in my life would've taught me this
Yes, I’ve done this for my children but wish I started it when they were babies. I thought they had to be at least 12 so that is what I did. The older ones are now 18 and 19, my 14 year old hasn’t been on there long.
Everyone gangsta until someone’s baby is buying milk with a credit card
My mom maxed out cards in my name and overdrew my school savings program account many times before I was out of 6th year. This video made me so jealous I could cry. At least I will do better and now know to do this for my future kids 💔
I wish my parents had thought to do this. Unfortunately, my student loans killed my credit score 😕
Uh how? That's the opposite of how it should work. The point of a credit score is to communicate to lenders how good of an investment you are, so student loans can actually be really good for your credit. Unless you aren't able to pay them off or you pay them off in a lump sum instead of monthly...the former means creditors aren't getting their money back, the latter means they won't get as much as they could from the interest you'd accrue with monthly payments. Outside of those situations, you're showing creditors you'll be doing exactly what they want, so your score should go up. In a vacuum, at least, cuz there are lots of other things in your life that can affect your score.
Excellent! Thanks for sharing.
Here in Canada, being an authorized user on someone else's card does not build any credit score.
Ya cool thing for rich people, but i grew up poor af and im still poor af, i cant even afford to get a credit card
You don’t need money to get a credit card though. Use Credit Karma (or other websites) to explore credit cards. Just apply for one that has no annual fee and what it says you qualify for. If you don’t get approved, you can do a secured credit card.
We poor and only my husband has a credit card and I don't. I don't recommend having a credit card because it only builds on debts. So you don't need it. We poor too. It's better to use cash and bank card for what u need.
@@lilacfairy. it only builds debt if you can't pay it off. Note: get a credit card with no annual fee, and always pay off your credit immediately. Don't spend more than you have in the bank. Your score will improve, you'll have cashback and benefits, and you'll have a credit history.
@@raquellalisa7296 Credit Karma has awful credit cards and they lie about your credit score and what is even on your report! Please check other sources!
@@lilacfairy. you just have to use it correctly your probably using your credit AND debit card when you should only be using your credit card as your debit card and paying it off in full every month.
I’ll be teaching my kid to not borrow money. As Dave Ramsey says: a good credit score just means you’re good at paying interest. I’d rather build wealth than credit.
I agree this feels like a trap
Paying interest is not a factor in credit scoring. That’s just something people say when they have no clue how a score is calculated.
Please don’t. My dad put me through the Dave Ramsey course and it screwed me as an adult. I knew NOTHING about credit which meant when I did venture out into credit I did everything WRONG because I was only taught to not use it. Not HOW to use it. Also the world functions with credit, you want a car? Unless you can pay full cash you need a credit score to finance it. Even renting they want your credit score to determine if they’ll rent to you. Then there’s buying a house if you want to do that. You NEED a credit score unless you’re RICH enough to pay everything in cash. That’s what most people miss when they follow Dave Ramsey. HE has the cash to pay cash all the time. Most Americans don’t. Anyways point being you need to learn how to use credit to really function in this world unless you’re already rich enough to pay cash.
We don't have that in my country but we can do something similar with bonus points on car insurance. When you are a young driver, you pay full insurance but over years without accident, you gain a percentage of discount, up to 50%. So when my son had his licence, he didn't have a car on his name but on mine, so I pay the insurance with 50% bonus, and he is registered as a second driver. After 2 years, he can buy his own car using my bonus. It's known for a while. I gained my own bonus by driving my husband's car in the 90's, and he gained his own bonus by driving his father's car in the 80's.
Excellent idea 💡 👏
My mom made me wary of ccs so I didn't get my first until 25. Got a good job at 18 that led me into promotions easily. Even though I was making good money I had no credit and couldn't get a car. I'm not rich but I'm going to start my kids better. 1 will have 10 years of credit history and the other will have 17 years. I don't want them to struggle like I did.
My mom and dad did this for me in my mid teens. And even though I’ve kinda tanked my credit because while being a broke college student living on my own I wasn’t making enough to support myself I still have a higher score than many of me peers who’s parents didn’t know to do this
This is good to know. Thanks! 👍🏾
Lololol, I'm remembering some news stories about very small kids going wild on Amazon and buying tons of stuff ...
I didn’t know about this until my kids were teenagers. But they have cards now and are responsible with them. Put all the kids on one card and I can see individual transactions so I I know who charged what so they can pay for their stuff. It’s worked out really well. Wish I had done that for my oldest
I’m sure they wish you had too.
We can't do things unless we know about them.
Showing that you started doing what you could as soon as you learned about it is better than saying, "Well, my oldest is already an adult, I guess I won't help my other kids either."
I'm just learning about this TODAY.
No one in my family ever heard of this.
I didn't even know you COULD build someone else's credit. 🤷🏼♀️
My kids are 22, 18, and 14. (I'm 39)
So I guess I'll start this for my youngest one... As unfortunate as it is that I can't go back in time, it's just something I have to accept.
Where were you when I had my first born 😅
You don't have to do that early
Read some of the comments
I don't know how old your kids are but it's never too late
You can do this also when they are already in highschool
I started this for my daughter right after she was born. I added her on my cap1 and sapphire reserve.
Thank you for these secrets and leveling the playing field a little. This information is priceless ❤❤❤
Scary that there’s no age requirements… my good friend of 20+ years had her credit destroyed by her alcoholic mother and when she turned 18 saw she was a ghost in the market bc no one would set her up with anything.
Yup is a good and bad thing depending on the parents and if they are responsible with their own credit…
Dpuble check with your card - Some credit card companies don't report authorized users to all 3 credit bureaus
This is great advice. I did it with my kids but I should have done it earlier than I did. Wish I would have known that before now.
I’m doing this with my child now. I figured it out a couple of years ago. It’s good to get confirmation I’m on the right track.
Renting your first apartment is never a problem without having no credit or new credit… most of ppl I went to high school with got their fist apartment or rental home with no issues unless their parents used their name when they were younger
It is a problem. You will lose access to so many places without good credit. Can you still rent? Sure, but it will most likely not be where you want, much less a good price. I still remember when I was fresh out of high school, applying everywhere for an apartment, and every place citing lack of credit as a reason for the rejection.
Eventually I was accepted in a shitty neighborhood where I was forced to stay for next 3 years of my life... 😃
This is a brilliant tip.
“This will help them rent their first apartment” 😂😂😂
You don't have to be Rich parent for this. Just be a financially aware and responsible parent.
My mom: puts bills in our names and didn't pay them....