 Building
Junior's credit score
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 Dear
Dr. Don,
My wife and I both have good credit (708 and 734)
and are considering putting our 7 year old son on
a credit card account as an authorized user so that
he can start establishing his credit profile now.
My question is, am I allowed to put him, at age
7, on the account as an authorized user? If not,
how soon can I start establishing credit for him?
Thank you,
-- Wondering Wayne
 Dear
Wayne,
In general, minors aren't allowed to enter into contracts creating
a financial obligation, but since, as an authorized user on your
credit card, he doesn't have a financial obligation to repay the
card balance, I don't see any reason why he can't be listed on your
account as an authorized user.
When a married couple has one spouse on a credit card
account as an authorized user, the credit card company must provide
the account payment history on the authorized user's credit report.
The card company is under no obligation to do so when the authorized
user isn't a spouse, so you'd want to confirm that the card provider
will provide that payment history for your son.
A good credit score provides the means to an end,
being able to borrow to finance assets at attractive interest rates.
The pervasive use of personal credit histories to make inferences
on employment, renting and insurance decisions makes managing your
credit score an important aspect of financial management, but it's
easy to get too wrapped up in managing your credit score.
Just because you can do it doesn't mean you should do it. Your
son is over a decade away from being able to apply for credit on
his own. There's no need to start building a history at age 7.
My counsel is for you to hold this idea in abeyance
for the next six to eight years.
To ask a question of Dr. Don, go to the "Ask
the Experts" page, and select one of these topics: "financing
a home," "saving & investing" or "money."
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