How to give your kids a perfect credit score by age18. The Authorized User hack.
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- Опубліковано 17 кві 2023
- How to give your kids a perfect credit score by age18. The Authorized User hack. #creditscore
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My parents did exactly this for me. Interestingly, not all credit agencies take into account authorized user status when considering credit history. TransUnion does and experian does not. The credit score difference between the two is over 50 points!
Find on youtube..,
@@user-cp5js2be1v you can do the same for your kids
Doesn't matter about the credit of the person you piggy back off of. Only the card to which you are added. They might have 5 cards with a bad credit history, but if they opened a new one or have one with good credit history (you want to be added to that one). That will give you positive credit history despite their total credit history across all of their cards.
Wow, interesting. However, as a person from outside the US working in banking in several countries, I can say that the US system is unique and just weird. It promotes being indepted all your life. The more, the better. A scoring model developed maybe 50 years ago by a couple of guys is more saint that the Bible and determines the banking system and life of millions of people. Is anyone questioning this?
Yes, you being an outsider gives you more perspective than us- already tied to the system. Between the credit systems and the federal reserve bank- let's just say it's a challenge. The only good thing is that a person making 20k a year can have the same score as someone making 200k. Also since 1/3 of the score is debt to available credit, that actually encourages lower debt.
The reality though these days is even if a person pays cash for nearly everything, most can't buy a home outright and even to rent they look at the score.
@@bruceh4180 Many thanks for your comment. I am maybe not an expert in scoring, but still have considerable experience in lending. Basically, the rationale of scoring is to decrease the credit risk - a risk that a loan is not paid on time and is based on analysis of statistical data not intuition. Let’s say if you observe that married people are statistically paying considerably better than divorced people, you can include marital status as a scoring factor. For me the lack of any past obligations, especially consumer loans indicates that a person is magaging well personal finances, which means he/she is more likely to pay on time. Frequent consumer loans, even paid on time, indicate the oposite - consumerism and limited control of the family budget. This is why I think that the purpose of the US scoring system is not so much to limit the credit risk, but to encourage people to consumer spending on credit and thus ensure business for the banking system. Anyway once talking to American colleagues I caused astonishment when I mentioned that I never had had any consumer loan in my life and not even a credit card, which I just dont need.
It's really a blessing. I'm 30 and had no credit score until very recently. So you are really giving that person a gift even if they don't realize it until years later.
This is very helpful. My son is only three, but that will be great down the road. A great tool to teach them responsible credit card usage as well
Mines 721 and I’ve had my card since I was 16, I’m now 18, not because my mom added me to her card but because she got me a good capital one debit card :)
Nobody did anything for me, but my Fico score has been sitting around 834 for the last 20 years. 😎
최새일 my father, thank you for stealing my brothers credits so that he couldn't pay / attend for college for years ( he became a doctor now) Thank you for constantly abusing mother front of me when brother ran away ( I am a chef now.) Your lessons will not be forgotten, thank you.
My daughter is 11 months old , and I added her in 3 credits already like cap1 n chase. Next is American Express once she is 13.
He is on youtube,,.
Mine is just over a year. I’ve heard this method all my life and intend to set her up but wasn’t sure if I could add her at such a young age.
What an awesome dad!
I wish my parents taught me ANYTHING about credit 😢
Mine did too. But he fell on hard times and have to file bankruptcy. I’d lean against it folks.
This is amazing! Appreciate you for sharing!
Got to them on youtube..,
Wow I didn't know that. Ill have my kid as supplementary
Interesting is that legal in Business law Policy
my father did this and did the opposite screwed up my credit so when i was finally able to get an account for myself opened i had horrible credit. still working back up to a 700 to this day :/
Does my credit history as the parent pass on to them moving forward or can the credit history before I added them affect them??
I did the same with my son and now he turn 18 with 713 score
Something my co-worker said is if you plan on applying for a loan. Having a young person on your accounts might lead to a letter of explanation in the future.
Very cool! My mom put me on as a user as well but I was so afraid to use a credit card growing up lol
We just did a credit card video on my channel as well!
This shouldn't be allow. 😢
How would they report the credit to the authorize user if they dont ask for their social security number
I’m pretty sure you input the social security number if I remember correctly
Yea chase didn’t ask for it just her name.
@@sauveli5949 hmm. Might want to check & make sure the kid is actually building credit as an authorized user if you didn’t give SS#.
Aka his debt!
I've always had mixed feelings about this. I understand wanting your kids to have good credit but im kind of in the camp of it should be earned by the actual person.
I think what you should learn from this is maybe dont do it unless your already financially stable cuz if/when they want to cancel it can just take away that credit so ur in the same spot you started and if your kid doesn't know about it then your just a shitty parent....
What if the dad have bad credit? Is it going to effect the child too?
Yes, has to be on a card that has good payment history which always gets paid in full. Too many ppl make the minimum payment thinking that’s still good which it’s not in the long run, it’s worse cause interest rate on the item gets way to high to be worth it. Some parents shouldn’t do this, if they don’t pay things on time they should leave their kids credit alone
Now the next question is what happens to their credit when you want to remove them as an authorized user.
You make your kids open their own credit card lines. Due to the high credit, they won't get rejected and will start with a substantial amount. Then you can remove them as an authorized user. Their credit will drop, but only by a small amount.
Found them via youtube,..
Now your going to pay on average 40 dollars more - I’m. Or talking to the creator; I’m talking to anyone who is buying a home right now May 1st 2023
Hot take: this more conversational tone feels a million times less condescending then your like “content” style you usually use
They are on youtube,.,
Brandoncreditfix👈
P
Their channel on youtube.,.
Brandoncreditfix👈
This is wrong info. Adding family member in your credit account does NOT create credit history or score for that person!
@H you sure? Added my wife a decade ago to my credit account, no history yet
It's depends on the card in some cases. But most of the time it will create credit history. Some don't report to all bureaus. Also the person must have a social and all the proper info.