This one comes straight from Financial Zen Member, Davis Pemstein.
On behalf of the Financial Zen community, we thank you!
LENGTH OF CREDIT HISTORY
Davis responded to my FZ Daily about increasing your credit line twice a year with this little nugget.
Adding your kids as authorized users on your credit cards will start THEIR credit history.
According to myFICO, length of credit history makes up 15% of your credit score.
So you’ll want to add them as soon as they’re born.
PAYMENT HISTORY
As we rolled this out to our FZ Members last month, I got a smart question (no surprise), so I dug a little deeper.
35% of your credit score is based on your payment history.
With every on-time payment YOU make, your baby will also get credit for it.
That means you want to add your kids to ALL of your credit cards, not just one.
Most credit card companies will let you add authorized users online.
So take 3 minutes to log in, add your kids and voila!
By the time your kid’s a college freshman, they’ll have 18 years of credit history AND on-time payments under their belt.
