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Don’t have a kid as yet…but was in a discussion with a friend. Does it make sense to get your kid a credit card right when they are born (or very, very young) so as to establish credit for them. Use the card once in a while and pay it off in full. Does that increase the chance of the kid getting a great credit history and therefore much lower interest rates when the kid is buying a car or a house…etc.
What are the rules anyways…do they need to be 16? I remember kids in my school that had credit cards before 16.

8 Thoughts on Can I get a credit card for my new born child so as to improve his/her credit history?
  1. Reply
    sortaclarksville
    June 20, 2011 at 8:58 pm

    Those card were probably pre-paid cards that were loaded/reloaded by their parents OR they were “authorized users” on their parents card, which meant they could use the card to make purchases, but were not legally responsible for making the payments. And, yes, an authorized user on someone else’s account can have their own name printed on the card.

    A minor can not have a credit card because they can not enter into a contract and could therefore not be held liable for making payments. Plus, would it be fair to a child if the parent opened credit cards for a minor only to ruin that child’s credit?

  2. Reply
    Steve L
    June 20, 2011 at 8:58 pm

    I don’t think that is a good idea. You also have to consider the risk of identity theft. It doesn’t take very long to establish a good credit rating and they still need the income to back up any loan they would get. You wouldn’t want a child going to college with a $ 10,000 credit line would you? Only bad things can happen. If you wait until 17 or 18, a child with no history can get a $ 500 to $ 1000 line of credit. And then prove themselves from there.

  3. Reply
    CommonCents
    June 20, 2011 at 9:01 pm

    As long as you have a SSN, you could put the child on your accounts as an authorized user. I don’t think that they will ask age or for a signature. They will send you a card in the child’s name. It might be fun!
    ( I know a guy who got his dog a card. It was pre-approved, no SSN)

    It’s good planning, but probably not necessary at birth.

    Wait until they are closer to really needing a score to use.
    You can build a good score closer to when you need it.

    Possibly not a good idea to complicate them just in case you run into problems as the primary on the account.

  4. Reply
    monkey
    June 20, 2011 at 9:21 pm

    NO, it doesn’t make sense. One has to use the credit card and show a record of payment on time, etc., to get credit needed to buy a house, etc. Give your kid a break and don’t put him in debt before he can even talk!!!!

  5. Reply
    JAzzY
    June 20, 2011 at 10:18 pm

    I think you should let the child decide when they get older if they want a credit card its their name and choice, dont ruin their credit befor they get a chance… and also that is illegal, you have to be 18 to get any kind of credit

  6. Reply
    collectquote
    June 20, 2011 at 10:43 pm

    A minor can NOT establish credit. Any of the gimics about cards or loans for minors is guaranteed by the parent or guardian anyway and does not help or hurt the minor’s future credit. The thought behind this is great, I would recommend educating the child about money and credit as he grows up. Take care and good luck.

  7. Reply
    nittygritty
    June 20, 2011 at 11:06 pm

    as for a baby with a credit card probably not necessary. maybe when he/she are closer to the teen years.
    I have to disagree with some of the answers to this one. Minors can get credit cards with their parents as co-signers. someone said it cant help or hurt them well it can. My husband got a card when he was 15 he was pretty responsible paying his payments because he was working part time while in highschool. Something came up and his mother took the credit card payment money and didnt pay his card ( she had other issues) regardless when he turned 18 they came after my husband not his mother. so dont be so sure they wont come after the minor. i mean they shouldnt be able to but they do and they will. Just fair warning to ppl who think minors are in the clear.

  8. Reply
    Dixie M
    June 20, 2011 at 11:08 pm

    Maybe you can try below website to get the information you need. It’s about a unique credit cards solution for your second opinion.

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