If your child has recently graduated from college and is having trouble securing housing, a limited or nonexistent credit history could be the obstacle. Strong credit opens doors to apartments, mortgages, credit cards, and loans. If you and your adult child are unsure where to start, here are a few practical steps to help them establish and grow their credit profile.
Open a Secured Credit Card
Helping your child open a secured credit card is a reliable way to start building credit. With a secured card, your child provides a cash deposit that sets the card’s credit limit. They can use the card for everyday purchases just like any other card, and as long as payments are made on time, those positive actions are reported to the credit bureaus—helping to build a strong credit score.
Consider Adding Them as an Authorized User
If your child has little or no credit history, consider making them an authorized user on your existing credit card. This step helps them benefit from your established credit and rewards timely payments. However, it’s important to have an honest conversation about financial responsibility, as you’ll be accountable for any balance they carry.
Invite Them to Move Home Temporarily
Allowing your recent graduate to live at home for a while can relieve some immediate financial pressure, giving them space to build better credit habits. You might also consider putting a bill, such as a utility account, in their name. Making on-time payments on this account can add to their credit history. Be sure to encourage prompt student loan payments and take the time to discuss credit basics and long-term management skills during their stay.
By supporting your child through these foundational steps, you’ll help set them up for financial independence and success well into the future.
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