Question about starting a credit score for a young'un.

I would setup a credit karma or something similar for her. Anything that effects the score will show up and will show the TransUnion and Equifax scores automatically, including a credit card.

 

Typically yes the activity and credit capacity of the card owner (you) will show up as a component of the authorized user (your granddaughter ). I would have thought it would require a social security number. My guess is until there is a credit file associated with a social security number, her credit file won’t reflect this activity. If one already exists perhaps it gets matched up. If it doesn’t exist already then it probably won’t.

While this can be a good way to build credit, it really depends on the responsibility of the young adult. I had done something similar for my daughter and she ended up accruing tens of thousands in debt that she wouldn’t have otherwise been able to and she will never pay back.

 

Not likely as the account isn’t in her name and she’s not responsible for payment as an authorized user on your account. Think she just has a free card.

When my daughter left for college we got her a credit card with a $500 credit limit in her name with to build a rating rating for her.

 

if you add an authorized user, which generates an additional card for the user, that card - all card activity - will show up on the authorized users credit profile. I know this for a fact.

 

without her SS I’m not sure how it gets matched up to a credit file, so it may not be helping. She should create a credit karma account and see if it is registering.

 

The credit agencies don’t even require SSN. You can get your own report without it. It has to be old school snail mail. SSN gets you added convenience like email transactions.

This is a financial tip I actually learned doing GED trainings. Lots of them are immigrants trying to get citizenship (which is how you get a SSN) but are surprised to learn that they do indeed have a credit history with the major bureaus. They are advised to check periodically to make sure they are not establishing negative history.

You can even get some credit cards without a SSN, like Citibank (at least it was that way a couple of years ago.) You prove identity with utility bills or DL’s or lease agreements and other ways.

Reading what was posted here I would say your daughter’s usage is indeed being reported to the Big 3.

She can use her SSN to get instant access to those reports. No idea how HD reports or how often the Big 3 update. But I bet she is indeed in the Matrix now.

 

It can still happen without a social. Name, date of birth and address are typically all that are needed to do a soft credit check.

 

Maybe I’m misunderstanding what you’re saying, but you don’t need citizenship to get an SSN. Immigrants with an employment authorization can get an SSN.

When I first came to the US about 25 years ago, Discover was the only credit card you could get without an SSN and prior credit score. Don’t know if that’s still the case.

 

Not sure about HD but I put my kids as AU on amex cards when they turned 15 and it showed for all 3 of them. Amex does request SS #. They all have 750 + credit scores now which helped with apt rental. I do pay off every card in full. Never ever carry a balance unless it is a 0% card and then I'll put the cash in something interest bearing so it is set aside until offer ends. Chase has some good cards to build credit with. Get a no fee card and make sure she never cancels it to get her average age of credit up.

 

I should have said “For example…” instead of suggesting that is the only way. I just happened to overhear that from a class on the other side of the divider (I did English classes.) I understand there is also an ITIN although that is its own process and also doesn’t get you the instant access. But I would have to look that acronym up, I only remember it because it caused pandemonium and was repeated like 30 times.

I couldn’t listen to the whole thing, I imagine your point was also part of it.

 

Imho, you ought to guide her to obtain her own checking account and cc, and offer to assist her in managing and monitoring them, rather than adding her to yours, which you manage.

My kids have gotten jobs at 16, and their own bank accounts (with my help, but it's theirs (not credit cards yet, bc not necessary, as they work and save, then spend enough to buy car, with reserves for repairs and maintenance))--old school- earn it, then spend. That's of course, the approach I recommend.

As for the cc's, Im not inclined to rush them into debt spending mentality (borrow, soend....then earn, payback). Actually teaching them the opposite. Avoid, avoid, avoid.... I always like yo point out the shiny skyscrapers, and tell them their built on suckers' money, via interest (ie modern slavery).

But if your intending to teach her the credit score game, imho, she'll learn better if it's her name, and she's responsible and accountable for what happens.

Jmho/fwiw

 

You were shocked shocked she didn’t have a checking account? Hate to break it to you but less and less people write checks anymore. As for having her establish credit, I’m not sure adding her to your Home Depot account will do anything. What you need to do is have her open up an acccount somewhere and have yourself added as a joint owner.

 

My parents did the same for me. (It had a $1000 limit.)

 

It should. May take longer without the ssn though.

 

Walmart is the new store card that anyone can get.