Parents Explore Early Steps To Build Children's Credit

Parents in Bloomington, Illinois, and across the country are weighing how early they can get a child's credit history started, years before that child signs a lease or takes out a car loan. The Pantagraph, a daily newspaper based in Bloomington, published a guide this month on building a child's credit, pointing families toward authorized-user status, secured cards and other starting points before adulthood, according to the paper's report.

The interest comes as public attitudes toward credit scores themselves remain mixed. A recent San Francisco survey found a negative perception of credit scores among respondents, according to The Wealthy Will's reporting, underscoring why some parents want a head start for their kids rather than leaving credit-building to adulthood alone.

Why does a child's credit history matter before age 18?

A child generally has no credit file at all until an account tied to their name shows up on record with one of the major credit bureaus. That can happen two ways: a parent adds the child to an existing account, or the child opens an account of their own once they're old enough to qualify. Starting earlier, in theory, gives a longer track record of on-time payments by the time a young adult applies for an apartment, a car loan or their first independent credit card.

How does adding a child as an authorized user work?

The most common first step parents use is authorized-user status. A parent keeps their own credit card account and adds the child as an authorized user, meaning the child gets a card tied to the parent's account but isn't legally responsible for the debt. Depending on the card issuer, that account's payment history can show up on the child's own credit file once one exists. No new account or credit check for the child is required to be added this way.

What is a secured credit card, and who can get one?

A secured card requires a cash deposit upfront, which usually becomes the card's credit limit. Because the issuer holds that deposit as collateral, approval standards are typically looser than for a standard unsecured card. Federal law generally requires applicants to be 21 or older to open a credit card independently, unless they can show independent income or have a co-signer. That rule is why many younger teens use authorized-user status first and move to a secured or student card once they're closer to adulthood.

Does paying bills on time still matter for a minor?

Yes, in the sense that the underlying habit matters more than the specific product. Whether a family uses authorized-user status, a secured card, or a basic savings account tied to a debit card, the behaviors that build a track record — paying balances in full and on time, keeping balances low relative to any limit, and avoiding missed payments — are the same ones that matter once a young adult has credit in their own name.

What do the San Francisco survey findings suggest about credit scores generally?

The survey reported by The Wealthy Will found respondents hold a negative view of credit scores as a measure, a finding that cuts against the idea that a higher number is an unambiguous goal. That tension — building a credit history while remaining skeptical of what the resulting score actually measures — is part of why financial guides increasingly frame credit-building around habits like on-time payments rather than the score itself.

Data Box

• Minimum age to open a credit card independently without a co-signer or proof of income: 21, under federal law.
• Age at which many families begin authorized-user status for a child: before 18, since no new account or credit check is required for the child.

What to watch

• Whether card issuers a family uses actually report authorized-user activity to the credit bureaus — not all do.
• Secured-card deposit terms and whether the deposit is refunded after a track record is established.
• Any update from The Pantagraph on the specific steps in its guide beyond authorized-user and secured-card basics.
• Continued survey data on public attitudes toward credit scores as a measure of financial health.