Monday Money Tips (10/20/25)
Last week, we shared 4 quick tips to help boost your credit score. This week, we’re diving into a strategy that could set your children up with a credit score of 750 or higher before they even turn 18. __________________________________________________________________________ Quiz Question: What part of your credit score takes the longest to build up? Answer: Credit History Why does this take the longest? Because to create "history" takes time. And lots of it. What if there was a "cheat code" to giving your kids a jumpstart to their credit history? Fortunately it's simple, and really just requires one step. See below: 1.) Add them as an authorized user on whichever 1-3 credit cards you have had the longest (Minimum of at least 5 years old). *Make sure the card(s) you are adding them to don’t charge an additional fee for authorized users - this is a very important point. __________________________________________________________________________ By the time they are an adult they’ll likely have: 1. 750+ credit score 2. Over 20 years of credit history 3. Access to any loan they may need __________________________________________________________________________ Remember from last week, the the 3 things that carry the most weight in determining your credit score are: 1. Payment History: How consistently you pay your bills 2. Credit Utilization: What percentage of your available credit you’re using 3. Credit History: How long your accounts has been open Numbers 1 & 2 are easy to improve, but number 3 takes time. By adding them as an authorized user they get to piggyback off of your credit history. *Only consider doing this if you yourself have a great credit score, otherwise they will be piggybacking off of your bad score which could negatively impact them.