DO NOT get a credit card for your minor child.
In the last 5 days I can not begin to tell you how many people contacted about the legitimacy of an online social network post that spread like wildfire within days. It appeared as if someone made it up in their head that if you add your child as an authorized user to your credit card, that this is a huge benefit to your child and they will be building a credit rating before they turn the age of majority.
This is incorrect in Canada. They’re are many regulations and laws, such as the consumer protection act; which protect minors from the responsibility of managing debt.
Yes, it is accurate that you can add your child to your credit card as an Authorized User, but that is it! You are simply giving your child control of your financial responsibility. Any payment history and management of the credit will have no benefit or result to your child’s future credit rating.
The question still remains: Well then how do I train you minor to manage debt better? Get them a pre-paid credit card, and make them pay the bill! This will set them up for strong financial responsibility for when they turn the age of majority and can apply for credit as an adult.
What’s the take away from this:
- Don’t believe everything you read.
- Find websites that are authentic and reliable sources of information for financial decisions. (like canada.ca for example and articles on credit card management)
3) Don’t read things out of context and interpret it incorrectly
Reach out to us today and tell us about your unique property you have interest in. We will tell you right away which bank or credit union could be a fit!