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My 2-year-old son has $95,000 in available credit. this is why

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It could help you in the long run.

Key points

  • To help my two-year-old son build credit, I made him an authorized user of my card.
  • I have a credit limit of $95,000 because I regularly request credit line increases.
  • The result is that my 2-year-old already has almost $100,000 in credit available to him.

My son turned 2 in September, but he already has more credit available than most people. Although he doesn’t go shopping with her, he has an incredible $95,000 line of credit on a rewards credit card.

This may seem strange, but there is a very simple reason why I have given a small child access to a large amount of credit.

This is why my son has a large line of credit

The simple reason my son has $95,000 credit available to him is because I made him an authorized user on my credit card.

An authorized user is a person who has the authority to use the card, but is not legally required to make payments with it. Credit card companies generally allow you to add anyone you want as an authorized user on a card.

An authorized user does not have to be 18 years old, have income, or have good credit. You can simply provide the Social Security number and contact details of someone you want to make an authorized user and they will be added to the account and provided with a credit card.

I chose to add my son to my card and make him an authorized user because doing so allows him to start building credit. My account will show up on his credit report from now on, when he’s very young. And as long as you keep it in the account, which I plan to do, it will stay on your credit history.

Since I only have a few credit cards and each one has a large line of credit, since I regularly ask for credit line increases, it just so happens that the card my son is registered on has a credit line of $95,000.

How being an authorized user will help my child

Being an authorized user will help my son build a good credit score even before he turns 18 and can start borrowing.

Look, since my account has been open for a long time and I don’t plan to close it anytime soon, my son will have an extremely long average credit age. That’s what lenders prefer and it will help your score. I also paid my card on time every time, so you will have a very strong positive payment history.

And because my credit limit is so high, even when I charge things to my card, I can keep my credit utilization ratio low, which will also help my son’s score. Credit utilization ratio is one of the main reasons I always request credit line increases. Keeping your used credit versus available credit fairly low can help improve your score. With such a large credit limit, I’d be unlikely to use more than 30% of my available credit, which is the level you typically don’t want to exceed.

I want to give my son these advantages and help him get good credit early so he can easily borrow when he’s older. As it happens, that means he could theoretically cash in up to $95,000 if he wanted to, and if we let him, which of course we won’t.

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