Should You Add Your Grandson as an Authorized User on Your Credit Card?

Q: I’m thinking about making my 24-year-old grandson an authorized user on my credit card to help him build credit. I won’t give him a card, but if he makes mistakes, will it impact my credit score?

A: In short, no. Your grandson's future actions won’t affect your credit score, as it’s calculated solely based on your accounts.

However, your grandson could be at risk. “If the card he’s associated with has issues, like high balances or missed payments, that negative activity will show up on both your credit report and his,” explains Michael Lofley, a CFP. “So, the main credit risk in this setup primarily lies with your grandson.”

Alternatively, a “secured credit card” may be a smarter choice. “This functions as a credit line backed by a deposit in a bank account, typically starting at a few hundred dollars, which a grandparent could provide,” suggests Michael Pumphrey, a CFP. “It allows the grandson to learn responsible credit usage, with the safety net that he won’t exceed what he has saved.”