When Is the Best Time to Build Credit for Your Kids

Having children isn’t an easy task, and being a parent is the most important job of all time. Throughout the years, parenting has become more of a challenge because of the highly competitive job market, but it’s also simpler with all the technology and information available. There are tons to think about when it comes to raising kids, with the bare minimum being their education, health, and necessities. 

However, with the world today shifting into a more diverse market and economy, financial education is starting to become increasingly important. The earlier that children learn about the way the American economy works, the smoother their transition to real adulthood will be in the end. Many people go into their coming-of-age without knowledge on taxes, budgeting, and even credit scores. If you’re thinking about something new to teach your child, it can be a good idea to start looking into building credit for kids. Knowledge is power when it comes to finances, and this may save their lives. 

Building Credit for Kids

So, how young is too young for building credit for kids? The future definitely depends on financial security and how well their scores look, but many people actually jump on the game too late. If you are parents looking to secure a good future for your kids, it can help to understand how you can start building their financial portfolio.

While your child has to be 18 with a source of income to have a credit card or a formal loan, there are ways to build credit even when they’re in their pre-teens if you’d like. The process begins once you make them an authorized user on your personal credit card, which gives them access to using the card without meeting the minimum requirements. Most providers don’t issue a minimum age requirement because the authorized users are going to be fully responsible for all bills. 

It Comes With a Catch

Note that you don’t have to give them access to the card because that’s often a black hole that many get sucked into. Once you authorize your kid to have access to benefit from your good credit history, they’ll get some gains from this even if they remain passive. Provided that they’re authorized on paper, they’ll be able to benefit from the whole process. Once they’re of age and you can trust them with what you’ve taught them about financial literacy, you can then issue them the credit card for essential purchases. 

However, the risks of this are plenty, especially if your child who you’ve co-signed for on the authorization form loves to spend. Remember that your signature entails that anything they are unable to pay will be shouldered by you. If your child goes into heavy credit card debt, this may be detrimental to your own finances as a parent. 

Invest Tons of Time and Effort Into Financial Education

You can never give your child too many lectures on financial literacy. Reminding them that money doesn’t grow on trees can help them understand how important saving is in this world. Not all families are blessed with endless flows of cash and assets, and instilling a mix of hard and smart working skills can help them break free from dependence and work on themselves. Once your children understand the importance of money and how easily it can be taken away, they’ll be more financially secure adults, so never skimp on the lectures. 


Building credit for kids is a simple task that can help them in the future. Your moves today can make their life better tomorrow, but only if you start working on their financial education. Credit for kids is one crucial aspect of education that will carry over into adulthood, so be sure to invest time and effort into your child’s future. 

Kiddie Kredit is a well-designed mobile app that can help children receive financial education and knowledge. It’s never too young to learn about the world of money and income, and the earlier they understand this, the smarter they’ll be as adults. Download our app today to get your kids started on building credit and other savings. 

John D Saunders

John D. Saunders is a Web Designer and Founder at 5Four Digital, CMO at Kiddie Kredit and an Automation Expert with a decade of experience building brands online. He's worked with clients including Audi, NAACP and Apps Without Code.