No. of Recommendations: 6
First, it is my understanding that being an authorized user does not impact her credit score (but I could be mistaken on that).

Sorry, you are incorrect. There was a short time frame when being an authorized user was pulled out of some of the credit scoring models, but there was significant pushback, and it was reinstated.

Second, and more importantly, I don't see how that does anything to help her learn how to actually use and manage a credit card.

Well, the immediate question was how to get the daughter some credit, which is probably most quickly accomplished by putting her on other cards as an authorized user, since new accounts can delay reporting to credit bureaus for up to 90 days. That said, even with an authorized user card, the daughter could be allowed to manage the card herself, especially if the owner(s) of the card don't use it.

I do agree that it's important to ensure that the daughter is responsible in her use of credit, and managing her own card will help with that. But co-signing accounts, especially for someone who doesn't have any credit history puts your own credit record at significant risk, so it's probably better to wait to co-sign until there is some history of responsible use of credit.

AJ
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.