Well, you have finally tossed that ridiculous hat in the air and earned your diploma. Congratulations. Now you are entering the world of adults where credit scores are everything. It might be a little scary but you got it. Your parents would definitely want to assist you with establishing credit as soon as possible.
Becoming an authorized user of their credit card may be the smartest move to make at this moment. In general, you will depend on the financial performance of your parents. You will have the credit card under your name connected to their account. No need to worry because this doesn’t mean that you already have your very own card. By the way, you don’t even need to use it. Just having the account may be enough for improving your credit score gradually.
It is very simple to add an authorized user to the existing credit account. All your parent needs to do is visit his or her credit account page in Chase, Capital One or any other bank. After that, he/she should choose the “Add a User” button and enter your name, date of birth and, possibly, your Social Security number. Finally, click “Submit”. A week later, you will have your very own credit card sent to you by mail.
One thing that you should take into consideration and it is significant. You are currently using someone else’s money. For example, if you use this card to pay $500 worth of sneakers, your parents will need to pay this amount back. Otherwise, both their credit and yours will be badly affected. This is team work now and do not be that bad of a teammate.
Discuss the terms before using the card. Ask your parents whether you have to notify them about your purchase plans. Make a budget for yourself to avoid any unpleasant discussions during family dinners. Nothing but truth can help you here.
Think of this as a cheat code of adulting. You get the chance to establish credit score without all those monthly bills. But do not get carried away in spending. Use it only to pay for your gas and Netflix account and repay immediately. Discipline will be very useful for you in the future.