Should I Add My Child as an Authorized User on My Credit Card?

Should I Add My Child as an Authorized User on My Credit Card?

Each year, countless young adults find themselves in the same Catch-22 style conundrum: They want credit cards so they can build credit, but they can't get approved because they've yet to build credit. It's a tough situation to be in, and while there are ways around it (like opening a secured credit card, which is a good credit-building option for those out in the real world for the first time), many of those who get denied are forced to resort to a tactic that's proved successful over time: getting added to their parents' account.

From an authorized user perspective, this is actually the best of both worlds. Get added to your parents' account, and you'll have access to their line of credit without having to earn that privilege yourself. You'll also get a separate card issued in your name, which means you'll have some autonomy plus the opportunity to build credit yourself. And if you come up short on the things you charge, your parents will ultimately be responsible for the bill.

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Source: Fool.com