A woman on TikTok spilled the tea on how wealthy people help give their children great credit scores before they’re even old enough to use a credit card.
“It’s not even that complicated … As soon as that kid is born, I am going to set them up as an authorized user on my credit card,” self-described “ex-Wall Streeter” Vivian, a.k.a. @yourrichbff, shared on TikTok.
“Instead of giving the card to them, I’m either going cut it or put it in a safe location. I will then proceed to make on-time payments on my credit card bill every single month. By doing so, I will start building good credit for my kid, allowing them to leech onto my good credit,” Vivian continued.
Fun fact about credit card companies: Aside from Discover and American Express, many major credit card companies don’t enforce a minimum age requirement. This information can be found quickly by reviewing your credit card’s “rewards and benefits.”
“By the time they finish high school, they will have built a credit history of 18 years and will have a score in the high seven hundreds or even eight hundreds. This will help them rent their first apartment or apply for a great credit card of their own,” Vivian added.
Watch @yourrichbff explain the tactic on TikTok below:
Many TikTok users were stunned in the comments. However, some shared that their own parents used similar tactics to help set them up for success.
“My parents accidentally did this and so grateful for it in my 30s,” one user wrote.
“My parents did this when I was in high school, and it made buying my first house at 26 such a breeze,” another viewer commented.
“We did this for our teens, and it’s been a great budgeting tool for them as well,” someone else shared.
“Add your child to the credit card you’ve had the longest. Then, when your child turns 18, their credit will be retroactive back to the date the cc was opened,” another parent advised.
However, another TikTok user issued a warning.
“This is also a way of ruining their credit. Not saying this shouldn’t be done, but life happens… So be careful,” they wrote.