By Mike Senecal
August 29, 2023
In a Nutshell: Starting adult life with a meager credit history or a low credit score is never an advantage. But there are financial pitfalls when parents try to get the ball rolling for their children ages 14-25 by adding them to their accounts as authorized users. FreeKick is a secured savings product from Austin Capital Bank that replaces the complexities of credit authorization with a structured deposit account that can build a lasting credit history for children without financial complications. FreeKick helps young people emerge into adulthood with a clean credit profile and a strong credit score.
A catch built into the credit industry puts children and young adults of the Gen Z generation at a disadvantage over more well-established consumers: you need credit to get credit. Lack of significant credit history or a credit score on the higher end of the scale can mean substantially elevated costs for millions of Gen Z consumers moving into financial independence and poised to make milestone credit purchases like homes and cars.
Many parents want to help their children get a healthy financial start to adulthood. The best-known approach to assisting children in building credit is for parents to add them to their accounts as authorized users.
Unfortunately, that comes with several pitfalls that can adversely impact family finances and even put children further behind at a crucial time in their financial life. And that makes the authorized user tradition ripe for disruption.
FreeKick, a secured savings product from Austin Capital Bank, is doing just that by replacing credit authorization with a set-it-and-forget-it deposit account that automatically builds a lasting credit history and a higher credit score for children without risking anyone’s finances.
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