Financial management is a crucial skill that every parent should teach their child. Having open conversations about money is a great first step, but no theoretical knowledge can replace the value of hands-on experience. If you want to give your child an opportunity to learn about lending and the banking system in general, you may ask, “How to get a credit card for my kid?”

Children and credit cards don’t typically go hand-in-hand, so you may find that your young one’s options are quite limited. To help you overcome these obstacles, this guide will show you how to support your child by giving them access to their first credit card. You’ll also learn the pros and cons of doing so alongside other ways to invest in your child’s financial future.

Can Children Get Credit Cards?

To understand whether your child is eligible for a credit card, you must look at two factors:

1. Age
2. Financial independence

Minors can’t legally own a credit card in their name. Neither your child nor you can obtain a credit card that they can own independently. Your child must be at least 18 (or older in states with a higher legal age) to qualify for a credit card.

While the law allows young adults to own credit cards, they must meet additional conditions to get one. The Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 prohibits banks from issuing credit cards to anyone under 21 unless they can demonstrate an independent ability to make payments.

If your child doesn’t meet this criterion, you can co-sign the account to get them a credit card. In this case, the child would be the primary owner, but you’d share all responsibility for the debt. 

Despite the CARD Act’s approval of co-signed credit cards, most major banks no longer support them. Those that do often impose stringent requirements, such as the co-signer having a high credit score. 

Considering all of the above, it’s easy to conclude that getting a regular credit card for your child is no easy feat. Luckily, this isn’t the only way to give them access to credit funds.

How Can a Child Get a Credit Card—Two Alternatives To Explore

Source: Mikhail Nilov

If your child isn’t eligible for a traditional credit card, there are two ways to support them:

1. Help your child get a secured credit card
2. Add them to your card as an authorized user

Can I Open a Secured Credit Card With My Child?

A secured card can be a smart, low-risk way to introduce your child to credit products. It’s another option reserved for legal adults, though it’s easier to obtain than a regular credit card.

This is because your child would have to put down a cash deposit to open the account, minimizing the lender’s risk. Secured cards also don’t require an extensive credit history or a high score, making them more easily accessible to young adults without one.

While you can’t open a secured card in your child’s name (they must do it themselves when they become eligible), you can help them save up for a deposit. You’ll typically need $200–$500, and the collateral will serve as the card’s limit to reduce the risk of overspending and excessive debt.

Despite their benefits, secured cards come with a few shortcomings:

• They’re not available to minors
• They often have high annual fees
• They usually come with a high annual percentage rate (APR)

How To Add a Credit Card in a Kid’s Name to Your Account

If your child is a minor, the only way for them to get access to a credit card is if you add them as an authorized user of yours. They’ll most likely get a new card with their name connected to your account.

Each bank has specific age requirements for authorized users, with some letting you add a child regardless of their age. The following table provides information on some of the biggest banks’ thresholds:

Bank	Minimum Age for Authorized Users
Bank of America	None
American Express	13
Capital One	None
Chase	None
Discover	15
U.S. Bank	16

This option can help your child learn about credit early on and give them access to additional funds. It can also help them get a credit file earlier than they could independently if your bank reports authorized users’ activity. 

While these benefits seem compelling, authorizing a child to use your card is a risky move you should consider carefully. Authorized users aren’t held responsible for the debt, so you retain the full obligation to repay it. There’s a high chance you won’t be able to dispute any unauthorized purchases because you willingly gave your child access to the card.

Besides, your child’s credit card activity will directly impact your credit score. If they max out the card, fail to make a payment, or show any irresponsible behavior, they could significantly damage your credit profile.

If you’re unsure about your child’s financial awareness and responsibility, you may want to hold off on adding them to your card until they’ve gotten the necessary education.

Can Parents Get Credit Cards for Children To Build Their Credit Scores?

Source: Mark OFlynn

If credit building is the main reason you want your child to have a credit card, you should beware of a few important caveats.

Young adults can build credit with a secured card in their name or a regular one you co-sign if you find a bank allowing it. Note that both options come with certain risks.

While a deposit guarantees a secured card, your child must still make timely payments. Making late payments can appear on their credit report for up to seven years, harming their credit score. If you co-sign a credit card with them, both your credit profiles are exposed to such risks.

As mentioned, adding a child to your card as an authorized user puts your credit in similar danger. Worse yet, it doesn’t help your child build their profile independently—your credit history will only be reported while they’re registered as an authorized user. When you remove them, all that activity will be deleted from their report, so they will have to start again from scratch.

Having all of the above in mind, a credit card isn’t the safest way to help your child build credit. If you need a low-risk and reliable method of setting your child up for an easier future, check out FreeKick.

Use FreeKick To Build Your Child’s Credit and Protect Their Identity

With so many restrictions on minors obtaining credit cards, a service like FreeKick that provides credit building features is the workaround you need. Offered by Austin Capital Bank, FreeKick is an FDIC-insured deposit account that helps you build credit for your child while also protecting the identities of your whole family.

Three Steps for Using FreeKick’s Credit Building Service

FreeKick’s credit building service is available for children aged 13 to 25. Take the following three simple steps to help your child establish a credit history early on in life:

1. Create an Account—Go to FreeKick.bank, sign up for an account, and choose a deposit that suits your budget
2. Set It and Forget It—FreeKick will start building 12 months’ worth of credit history for your child
3. Keep Growing—After 12 months, you can either close the account without any fees or choose to continue building credit for your child for another year

This service gives your child a credit head start of up to five years when they turn 18, which will help them save $200,000 during their lifetime through favorable loan terms and other financial perks.

How FreeKick Protects Your Child’s Identity

Child identity theft happens every 30 seconds, and without a secure identity, your child’s credit profile will be standing on a shaky foundation. This is why it’s important to invest in identity protection when you’re trying to give your children a bright financial future. FreeKick’s identity protection services include:

Services for Minors	Services for Adult Children and Parents
Credit profile monitoring Social Security number (SSN) monitoring Dark web monitoring for children’s personal information Up to $1 million identity theft insurance Full-service white-glove concierge credit restoration Sex offender monitoring—based on sponsor parent’s address	Credit profile monitoring SSN monitoring Dark web monitoring for personal information Up to $1 million identity theft insurance Full-service white-glove concierge credit restoration Lost wallet protection Court records monitoring Change of address monitoring Non-credit (Payday) loan monitoring Free FICO® Score monthly FICO® Score factors Experian credit report monthly

What FreeKick Costs

FreeKick offers two pricing plans:

FDIC-Insured Deposit	Annual Fee
$3,000	$0 (Free)
No deposit	$149

With both plans, you get:

1. Credit building for six children aged 13 to 25
2. Identity protection for two parents and six children aged 0 to 25

Say goodbye to credit card hassle and help your child establish a good credit profile—sign up for FreeKick today.

Featured image source: Pavel Danilyuk