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Building Kids Credit Warning:


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I've been looking at some of the reasons for low credit scores and one seems to be " you haven't haad credit long enough". I was wondering if I was to get a credit card in my sons name and SS#, he's only 7 months old, would that help him when it gets old enough to start establishing his own credit. Just a thought.

There are a few reasons why this might not be a good idea.

For one, the creditors who use fraud alert products would know from the social security number - that he was not old enough to be getting credit. May for others that don't check against the social security administration data base.

Another reason - would be how long to you expect this account to be open he is 7 months old now but should not have credit until 18. Which gives 17 years to maintain this account open and with charges made so that the creditor would not shut down the account due to inactivity.

And the final reason is purely for the protection of the child himself. Even with the best of intentions - there is still the what if side of things should something happen that delinquecies showed up on the account.

From my point of view - from time to time a divorced or seperated parent has called me specifically wanting to know how to check their childrens credit reports due to supsision of id theft on the other parents part.

This is so delicate a subject, have to be so careful with what you do - when making such a decision.

Yes, with the trouble of fraud you can obtain copy of a childs credit report if you write in the request, with proof of your gardinanship over the child to review what damage has been done.

Also Authorized User is the best and right way to go, you don't have to do this until the child is old enough to apply for credit themselves since, the history is reflected on your part and will still be there when the child needs it.

Recommend that you just don't give the child the Authorized Users card - hold on to that yourself and just let them ride with no spending rights. Believe me you will be saving yourself a lot of headaches in case they decide to go on a spending spree. Have already had a few of these calls from parents - that simply did not want to press charges against the child and ended up living with the bad credit resulting.

Would leave Co-Signer / Joint accounts alone. Only Authorized User and take the credit card away. Otherwise you invite trouble, since they can so easily drag your credit rating down with them.

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  • 2 weeks later...

KB, do you know how to actually handle something that a child trys to get on their own? Like my son sent in for the music club stuff, I got a letter in his name in the mail this weekend. How in the world can they allow a 12 year old to open these types of things? The same little man switched my long distance for me one day to sprint, through an offer online. And sprint really did switch it. I called them and got that all worked out, but how do you handle things like this? He has no job, will they try and make me pay for things he does like this? FYI, he is so not allowed at the computer anymore.

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Thats just what happend here. When I got the bill, I called right away. They tried to tell me that because I had used my ld during this time, that I knew and therefore agreed to their service. Yea, like I call and ask who my ld is for each phone call. They voided the debt out and refunded the charges on the phone bill. Sorry kb, we just hijacked your thread.

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Oh, I have had experience with this problem for sure; over 6 years with various step kids in the house to do damage!

One called a toll free adult number; got kicked out international call to south America for almost $500. The phone company called me to notify me & make sure I actually made the call. They dismissed a portion of the bill.

The phone company did not provide a sufficient password system for long distance, so I paid $5.00 per month for a long distance block. The reason I say the password is not sufficient is because a kid can easily break this block. Here you come up with a password say like 12345 ok 5 characters to complete the password. When the child tries breaking these things they don't have to type 12345 to get out, all they have to do is hit 5 numbers in a row!!! so it could be 54321 and they just got out.

The $5.00 long distance block did work, but someone eventually at the phone company dropped the ball later, cause one of the kids used 10-10-20 or something of the sort to get out! I called 1st time and they said that I had to pay for $300 worth in calls. I thought about it some more and called them back asking why the $5.00 service did not work. Heck it took a 3rd call to get someone who knew anything to realize my service was turned off on their end. I was pretty mad about paying $5.00 per month for better then 6 months for them to let the kids get by on long distance. Once they realized the problem they ate the bill!.

You just call your local phone company and ask them about these services and you will see the only way to go is the second option to turn off long distance all together. Or completely turn off the phone at the house and get a cell phone like me and the husband finally did. I know it is mean; but if the kids really have an emergency; then my mom was next door and they could make a local phone call only through her phone; since she had the block on too!

Sorry, I don't trust kids, don't much like them, and finally have them ALL out of the house, they would steal everything - by time we where done I had over the years had locks on about everything depending which kid was living with us at the time.

One kept getting into the frig eating everything that was bought for meals! so I put a lock on the frig!

Our bedroom; computer room; basement got locks and all the windows around the house got locks since one was breaking in ALL the time!

Yup don't miss the kids; mad about all the money we had to pay for hind sight, that is for sure. You have to be one step ahead of them!!! They are hackers these days of every sort when it comes to getting by anything.

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On the music club deal the best I can think of is to catch the mail and return to sender; and call the company to notify them the person purchasing was under 18 years old, and you want them to black list this child not to sell to him again!

I forgot one other thing; get yourself a PO Box and transfer ALL mail there, so the kids can't victimize you any further with ID Theft of this sort. That is what I did 6 month prior to moving to our new home; cause the kids kepts taking our mail. I was missing payments being made cause of this problem.

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