# Building a credit score **URL:** \ **Category:** In My Humble Opinion\ **Created:** [September 6, 2018, 3:32pm UTC](https://boards.straightdope.com/t/building-a-credit-score/820883 "2018-09-06T15:32:03Z")\ **Posts on this page:** 11\ **Page:** 2
**Author:** ![Slash1972](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/slash1972/32/6461_2.png) [@Slash1972](https://boards.straightdope.com/u/Slash1972)\ **Post date:** [September 7, 2018, 5:33pm UTC](https://boards.straightdope.com/t/building-a-credit-score/820883/21 "2018-09-07T17:33:24Z")
> [@Musicat](#): > > If that’s true, then it can go both ways. Black marks will show on both. You can’t have the good without the bad, which is why I don’t advise this method of handling credit. Why would her credit affect mine? ---
**Author:** ![steronz](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/steronz/32/11765_2.png) [@steronz](https://boards.straightdope.com/u/steronz)\ **Post date:** [September 7, 2018, 5:49pm UTC](https://boards.straightdope.com/t/building-a-credit-score/820883/22 "2018-09-07T17:49:09Z")
Important things: 1. Low credit utilization (e.g., having a card with a $500 limit that always has $100-200 in gas/food charges on it, even if you pay it off every month, is much, much worse than having a $20,000 limit with $1000 sitting on it every month, paying interest) 2. Age of credit history (this is why adding your daughter to your account is better than creating a new one, although a few years goes a long way) Recently used accounts “count” for more on both of the above points. I have a high limit card that I only use once every 3 years, just to reset the “last used” date. ---
**Author:** ![ZipperJJ](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/zipperjj/32/211_2.png) [@ZipperJJ](https://boards.straightdope.com/u/ZipperJJ)\ **Post date:** [September 7, 2018, 5:57pm UTC](https://boards.straightdope.com/t/building-a-credit-score/820883/23 "2018-09-07T17:57:21Z")
> [@Slash1972](#): > > Why would her credit affect mine? A black mark on the card (say no payment is made for 90 days) would affect both the primary card user’s and the authorized user’s credit. So, when you make someone an authorized user on your card you do need to look over their shoulder to make sure they’re handling the account properly, lest you get bad marks on your own credit. ---
**Author:** ![filmore](https://avatars.discourse-cdn.com/v4/letter/f/7993a0/32.png) [@filmore](https://boards.straightdope.com/u/filmore)\ **Post date:** [September 7, 2018, 6:21pm UTC](https://boards.straightdope.com/t/building-a-credit-score/820883/24 "2018-09-07T18:21:14Z")
Has your daughter ever been a user on your credit card for expenses you pay for like gas, books, etc? If so, then the co-signed credit card would be a great option. Tell her that the card can only be used for the kinds of expenses that you were already paying for anyway. Have the bill come to you and you pay it so you can look it over. Many cards have the ability for notifications if the balance reaches a certain value. Do that so you know if the spending ever gets excessive. [Just a general FYI to everyone] One risk of letting your kid use the card only for certain expenses is that they may charge other stuff at that location. If you just look at the statement, you might just assume all the gas station charges were for gas, but they could be buying a lot of other stuff in the convenience store. If that’s a concern, make sure the charges look appropriate ($100 at 7-11 to fill up your Honda?!?) or make sure you get receipts. ---
**Author:** ![Slash1972](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/slash1972/32/6461_2.png) [@Slash1972](https://boards.straightdope.com/u/Slash1972)\ **Post date:** [September 7, 2018, 7:13pm UTC](https://boards.straightdope.com/t/building-a-credit-score/820883/25 "2018-09-07T19:13:04Z")
> [@ZipperJJ](#): > > A black mark on the card (say no payment is made for 90 days) would affect both the primary card user’s and the authorized user’s credit. > > So, when you make someone an authorized user on your card you do need to look over their shoulder to make sure they’re handling the account properly, lest you get bad marks on your own credit. She didn’t get her own account, just her own card on my account. I’m not sure why it appeared on her credit report, but it did. ---
**Author:** ![control-z](https://avatars.discourse-cdn.com/v4/letter/c/eada6e/32.png) [@control-z](https://boards.straightdope.com/u/control-z)\ **Post date:** [September 7, 2018, 8:08pm UTC](https://boards.straightdope.com/t/building-a-credit-score/820883/26 "2018-09-07T20:08:54Z")
My advice for people with no credit is to get a credit card (secured or otherwise) and use it just for gas. It’s hard to overspend on gas. Pay it mostly off each month, but leave a little balance, I have the feeling that credit reporting agencies like to see you paying at least some interest. My daughter did this and her credit score rose pretty rapidly to 650 or so. ---
**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\ **Post date:** [September 10, 2018, 1:51am UTC](https://boards.straightdope.com/t/building-a-credit-score/820883/27 "2018-09-10T01:51:02Z")
> [@Loach](#): > > Does authorized user really have an effect on credit scores? I piggybacked on my ex-gfs Lowe’s card and we made some big purchases and it never seemed to even show up on my reports. It should - but perhaps Lowe’s did not report it. A regular Visa or MasterCard should. I’m in the process of adding my daughter to one of my cards to a) help her get a basic credit score, and b) let her have access to it for emergencies. I’ll have her check her score at some point to make sure it shows up. Loach could also cosign on a card for his daughter; we did that for my son. As a result, he began building a score. Of course, if the kid doesn’t pay, the parent’s score gets dinged - I’ve got a mark on my report from 3 years back when my son forgot to pay 2 months in a row. ---
**Author:** ![robby](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/robby/32/11048_2.png) [@robby](https://boards.straightdope.com/u/robby)\ **Post date:** [September 10, 2018, 2:22am UTC](https://boards.straightdope.com/t/building-a-credit-score/820883/28 "2018-09-10T02:22:27Z")
My son is in college, and I had him apply for a credit card with me as a co-signer. He uses it for his routine expenses, and pays it off every month. His credit score is now around 750. My understanding is that credit card companies don’t hand out cards to students like they used to (i.e. without a co-signer). I still have an American Express (later converted to an Optima Platinum) that I first got in my freshman year in college, along with a Discover card that I got in my junior year. Neither account ever had a co-signer. (These accounts are now about 30 years old.) ---
**Author:** ![Doctor\_Jackson](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/doctor_jackson/32/32_2.png) [@Doctor\_Jackson](https://boards.straightdope.com/u/Doctor_Jackson)\ **Post date:** [September 10, 2018, 4:22pm UTC](https://boards.straightdope.com/t/building-a-credit-score/820883/29 "2018-09-10T16:22:33Z")
> [@control-z](#): > > Pay it mostly off each month, but leave a little balance, I have the feeling that credit reporting agencies like to see you paying at least some interest. My daughter did this and her credit score rose pretty rapidly to 650 or so. This is a common misconception. Using a credit card can help your to a point but carrying a balance/paying interest has [no beneficial affect](https://www.creditkarma.com/credit-cards/i/carrying-a-balance-good-or-bad/)on your credit rating. Paying off your balance in full every month is always the wisest choice. ---
**Author:** ![pkbites](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/pkbites/32/204_2.png) [@pkbites](https://boards.straightdope.com/u/pkbites)\ **Post date:** [September 10, 2018, 11:59pm UTC](https://boards.straightdope.com/t/building-a-credit-score/820883/30 "2018-09-10T23:59:04Z")
Can you loan her or can she come up with $1000 in cash? Put $1000 in cash into a new passbook savings account. Next day apply for a loan for $1000 from the same bank, using the account as collateral. They will freeze the account because it is security for the loan. Take the $1000 they loan her to another bank and do the same thing. Do this 10 times. On paper it will look like she has $10K even though those accounts are frozen. Pay off the loans within 3 months. As loans are paid down funds will become unfrozen in those accounts. Yes it will cost a bit of money for interest. But in 3 months she will have credit reports that shows a 19 year old paying off $10K in loans. I did this in the late 70’s, my kids did it in the late 90’s/early aughts and it worked well. If you can come up with more than $1000 to start with so much the better. * * * As mentioned, get a low limit store card. Buy a few things and pay it off quickly. Credit scores are about consistency in payments. ---
**Author:** ![needscoffee](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/needscoffee/32/1076_2.png) [@needscoffee](https://boards.straightdope.com/u/needscoffee)\ **Post date:** [September 11, 2018, 12:30am UTC](https://boards.straightdope.com/t/building-a-credit-score/820883/31 "2018-09-11T00:30:55Z")
I would never be a co-signer on a card or loan for my kids - too much chance of temptation taking over their better judgment. Let your daughter get a secured, low-limit credit card. No risk for you or her. Both of my banks offer them. [Previous page](https://boards.straightdope.com/t/building-a-credit-score/820883.md?page=1)