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URL:  https://boards.fool.com/again-we-disagree-i-felt-it-was-part-of-my-job-34105671.aspx

Subject:  Re: Credit for College Date:  1/11/2019  3:54 PM
Author:  aj485 Number:  312334 of 312722

Again, we disagree. I felt it was part of my job as a parent to teach my kids about finances, and that included how to handle a credit card.

I don't disagree with that. I also believe that it is a parent's job to teach their kids about finances, including how to responsibly use credit. But the issue in this case is that there is no credit history, which is causing the kid to get turned down for jobs. The secondary issue is that, if one has a credit history that presents as a low score (new accounts with low limits don't present as high scores, even without any derogatory history), there may still be an issue with getting a job.

The fastest way to get a decent looking credit history is to be added as an authorized user to a card with a good history. The parents can then monitor the use of that card, like Frugalicious does with their daughter.

After the initial problem of having not having any credit history is solved, then I agree that the kid should seek their own credit card, hopefully being able to get it on their own, without having to have a co-signer, since they will hopefully now have a job.

If the kid can't get a credit card account on their own, and the kid has been responsible with their authorized user card, then the parent may choose to take on the risk of co-signing. But they should ensure that they are able to monitor the use of that card, and understand what it takes to get their name disassociated with the account, up to and including, being able to get the account closed down, BEFORE they co-sign.

AJ
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