What can you do to help your child build credit right from the start? You can open accounts for your child, build credit and protect your child against identity theft.
Where do I start
The best gift you can give your child is a gift of great credit. Here are some ways you can help your child build a strong credit history.
- Your credit card will allow your child to be an authorized buyer. While you are responsible for the purchase, your child will benefit from you building their credit score by paying all outstanding balances. This is a great way to teach your child credit management.
- If your child turns 21, you can be a cosigner on a credit card. According to law, all persons under 21 years old must have a cosigner. This is a great opportunity to help your child build credit and show responsibility credit-wise.
- If your child isn’t old enough to open a credit card, you can also open a store credit account under their name. You will need to pay the bill or make arrangements with your child, but these cards are a great way to quickly build credit.
Protecting a small child
Identity thieves aren’t discriminatory when it comes to the demographics and victims they target. They will pursue credit for an adult or child of any age. There are still things you can do to protect your child’s credit, even if they are too young to open a credit card account.
1. Check your child’s credit report at least twice per year. Report any unusual activity immediately if you notice it.
2. For your child, open a credit card account with Equifax or another major credit reporting agency. You can then freeze the account until your kid is ready to start building her credit.
3. Report any suspicious activity immediately. While it can take some time and may be complicated, it is crucial to act quickly if you notice something amiss with your credit report.
