ADDITIONAL CREDIT CARD HOLDER

martynbrice

I want to apply for a credit card, that allows my 16 year old daughter to become an additional cardholder. I am sure that Martin Lewis recently stated there were some companies that allowed it, but not all reported it to Experian etc. The reason is to build up a credit score for her.  I have found old posts relating to it, but I would like up to date information. 

DullGreyGuy

martynbrice said:

I want to apply for a credit card, that allows my 16 year old daughter to become an additional cardholder. I am sure that Martin Lewis recently stated there were some companies that allowed it, but not all reported it to Experian etc. The reason is to build up a credit score for her.  I have found old posts relating to it, but I would like up to date information. 

As a secondary cardholder she won't get any credit history from the card because the debt is solely in the primary cardholders name. 

martynbrice

Perhaps I am mistaken, I am sure Martin Lewis mentioned very recently, that SOME credit card companies reported details of the additional card holder to Experian etc; and that was a way of starting a credit history for a 16 year old.

TheSpectator

martynbrice said:

Perhaps I am mistaken, I am sure Martin Lewis mentioned very recently, that SOME credit card companies reported details of the additional card holder to Experian etc; and that was a way of starting a credit history for a 16 year old.

I think you are mistaken.

How would a credit card company report it, there is only one statement to the primary cardholder who is the only one who has signed a credit agreement.

And I believe you need to be over 18 to be a secondary card holder.

Jami74

Why does a 16 year old need a credit history?
If she's going to be working instead of staying in education then she'll start to have income and outgoings and over time get history. 

Nasqueron

martynbrice said:

I want to apply for a credit card, that allows my 16 year old daughter to become an additional cardholder. I am sure that Martin Lewis recently stated there were some companies that allowed it, but not all reported it to Experian etc. The reason is to build up a credit score for her.  I have found old posts relating to it, but I would like up to date information. 

Ignore the fake credit score

You do not build up a credit history as a secondary card holder, all the debt / spending is just for the primary card holder

A 16 year old is not going to get that card anyway as credit debts again under 18s are essentially unenforceable in most cases.

Wait until she's 18, get a mobile phone contract / SIM only deal in her name, go on the electoral register, get a job and then apply for a credit builder card 

lr1277

Should your daughter go to college/university, there are at the moment 2 banks that have credit cards for students. The applicant will need to a student current account at the same bank.

MEM62

martynbrice said:

The reason is to build up a credit score for her.  

The first part of this is easy to deal with as she doesn't have a credit score.  You can ignore the randomly generated number that the CRA's present to you as such as it is meaningless. What is important is you daughter's credit history.  That she will not have until she is 18 as, before that age, she cannot enter into a credit agreement because she is not an adult.  Irrespective of that, any borrowing on your credit card would not be reported on her history anyway.  

Rather than concentrating on her building up her ability to borrow money, why not teach her to handle money responsibly and live debt free?   

DullGreyGuy

martynbrice said:

Perhaps I am mistaken, I am sure Martin Lewis mentioned very recently, that SOME credit card companies reported details of the additional card holder to Experian etc; and that was a way of starting a credit history for a 16 year old.

AmEx corporate card has at some times report but its setup was weird at those times as you paid the card bill but the corporation provided a backstop if you had failed to but card fees for having the card were charged centrally and not to individual cards. I am fairly sure you had to be 18 to get one.

Maybe you were reading some articles on Experian? Their US website do recommend adding kids as authorised users and talk about it adding to their credit score but how these matters work in the US and the UK are very different. There you actually do have an official "score" unlike here. 

surreysaver

An under 18 year old cannot enter into a legal agreement, so therefore cannot have a credit history.
Just get them a bank account, and when they're 18 they can apply for an overdraft to go with it, and their own credit card if they want one

DullGreyGuy

surreysaver said:

An under 18 year old cannot enter into a legal agreement, so therefore cannot have a credit history.
Just get them a bank account, and when they're 18 they can apply for an overdraft to go with it, and their own credit card if they want one

An under 18 can enter into legal agreements, else how do kids spend their pocket money in a shop? Or use the bus as a teenager? 

A Minor is not bound by a contract, unless it's a contract of necessity (food, education, employment, accommodation etc). As such most businesses won't enter into longer term contracts with a minor because it's binding on the business but not the minor. Most are willing to enter into contracts with minors for the provision of goods given payment is made up front and so little risk of needing enforcement action against the minor at a later date. 

Note that in Scotland you can also enter into the contract of marriage at 16