We want what’s best for our children and their financial futures. Good credit goes a long way toward landing a job, buying a car and even getting that first apartment or home. So what can you do as a parent to help ensure they begin building credit the right way?

One option is adding them to your credit card account as an authorized user. Let’s take a look at a few reasons why it may make sense for you and your kids in the long run, as well as some things you can do if spending gets out of hand.

1. Your Credit Can Influence Theirs

If your credit is in good standing, adding your son or daughter to your credit card as an authorized user can help boost their credit score. And if your card offers cash back, miles or points, you’ll receive rewards for purchases made by authorized users, while they reap the benefits of being associated with a well-maintained account.

On the other hand, if you don’t have good credit, adding authorized users may not be a good idea as it can negatively affect their credit. Keep in mind, once added, you’ll be responsible for any charges your kids incur. If you can’t make timely payments on your children’s purchases, your own credit could suffer as a result.

2. You Can Monitor Their Spending

After sitting down and talking about responsible credit card use, you’ll probably still want to keep an eye on their account.

Luckily, some issuers offer tools to track authorized user spending in real time. They range from alerts on your phone to the ability to lock an authorized user’s card if overspending becomes a problem. In fact, a few issuers even allow you to set monthly spending limits for the authorized user, which gives you peace of mind knowing each kid is staying on budget.

3. You’ll Help Them Learn About Managing Money

When you add an authorized user, you’ll still receive only one statement, meaning you can manage both cards under one account. And, you’ll see exactly how much they’re spending and when. It’s a great opportunity to discuss expenditures and help them understand the importance of sticking to a budget and keeping track of those monthly purchases.

They’ll Appreciate This One Day

It’s important to provide your kids with a solid foundation of credit built on responsible card use and a better understanding of how to manage money. By helping build their credit now, you can help them qualify for their own credit card when they go off to college. That can make the transition a little easier (on all of you) and help establish good habits for future financial success.

Adding Spouses and Loved Ones

In addition to adding your kids, you can also add a spouse or loved one as an authorized user on your Capital One® card. The benefits are two-fold—an authorized user can both help you earn more rewards, and make it easier to manage your finances by having everything on one account. Getting started is easy and won’t cost you anything, and authorized users will get their own card to use for all their purchasing needs. 

Add an Authorized User Today!

Adding a user is easy and won’t cost you anything. They’ll get their own card to use for all their purchasing needs.

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