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A14 BUSINESS
Tuesday 9 april 2024
Millennial Money: Why adding a child as an authorized user might

not help their credit

By LAUREN SCHWAHN or and financial educator in
of NerdWallet the Boston area. You don’t
As parents, we want the need to give your kid the
best for our children: credit card. As long as the
health, happiness — and primary cardholder keeps
hardy credit. Having a their account open and
strong credit profile can active, the authorized us-
determine whether your kid er’s credit will share the ef-
gets approved for a loan or fects. If you give your child
how much they’ll pay for the card, set some ground
car insurance when they’re rules. Talk about when it’s
grown. But establishing OK to use the card, how
credit for someone with no much they’re allowed to
credit history is challenging. spend and who will make
A common workaround is the payments. Some credit
for parents to add their chil- card companies let you
dren as authorized users on place spending limits for
their credit card accounts. authorized users. Removing
Credit checks aren’t re- your kid as an authorized
quired, and the user can user can undo damage to
quickly piggyback on the their credit if the arrange-
primary cardholder’s credit ment goes wrong.
history. But this arrange- AUTHORIZED USER STATUS
ment isn’t always the right MIGHT NOT BE ENOUGH
move. Here’s what to know Several VISA and MASTER credit cards are shown in Buffalo Grove, Ill., Thursday, Feb. 8, 2024. FOR FUTURE LENDERS
Associated Press
about the potential limita- Some lenders don’t take
tions of adding your kid as older. Even if you can add doesn’t guarantee im- kid’s credit score. But your authorized user accounts
an authorized user and al- your child, the issuer may proved credit. “Same as credit and your child’s can into consideration when re-
ternative ways they can not report their account the primary account hold- suffer if either person uses viewing credit applications
build credit. details to the credit bu- er, it can affect your credit the account unfavorably. or give them much weight.
THEY MIGHT BE TOO YOUNG reaus. Some issuers allow positively or negatively, Ultimately, it’s up to the par- “If you’re a lender and
TO REAP THE BENEFITS kids as young as 13 to be- depending on how the ent to keep the account in you’re looking at someone
If you’re hoping to boost come authorized users but card is used,” says Bruce good standing. and you see the designa-
your child’s credit before only report credit informa- McClary, senior vice presi- “When you add someone tion that they’re an autho-
they even learn to tell time, tion for those age 18 and dent of membership and as an authorized user, that’s rized user rather than the
you could face roadblocks. older. It’s wise to ask your communications at the Na- what they are. They’re au- primary account holder,
For one, your kid may not credit card company how tional Foundation for Credit thorized to use the card but it’s just telling you that this
qualify for authorized user authorized user arrange- Counseling.If you have they are not legally bound person did not have to go
status. While some card is- ments work. a record of on-time pay- to pay the bill. You are le- through a credit approval
suers don’t have age re- MISUSE CAN LEAD TO DAM- ments and don’t use too gally bound to pay the bill,” process to have access to
strictions, others require AGED CREDIT much available credit, that says Julie Beckham, an ac- that account,” McClary
a minimum age of 13 or Being an authorized user can generate or help your credited financial counsel- says.q

Toyota will oversee model certification at subsidiary Daihatsu after

safety testing scandal

By YURI KAGEYAMA TOKYO (AP) — Japanese see model certification at its resigned after the allegations tion with the cheating, but
AP Business Writer automaker Toyota will over- subsidiary Daihatsu to regain of widespread cheating on the news has raised ques-
trust among dealers, custom- safety testing surfaced last tions about oversight at Dai-
ers and workers after a safety year. A third-party review hatsu, which is wholly owned
testing scandal, Daihatsu’s found violations, such as test- by Toyota.
new president said Monday. ing just one side of a car in- Inoue apologized and said
Toyota Motor Corp. will take stead of both, had persisted he has visited plants, deal-
a leadership role in various for decades. ers and suppliers, trying to
areas, including product Production at Daihatsu Mo- encourage better commu-
development and procure- tor Co was halted by a gov- nication among the ranks.
ment, said Masahiro Inoue, ernment order until proper Dealers have complained
who took the helm of Dai- tests can be done and a customers are waiting, but
hatsu in March. system set up to prevent a safety comes first before
“I have been spending each recurrence. chasing market share, he
and every day, vowing to re- Only some production has added.
vive Daihatsu,” said Inoue, since resumed. Daihatsu is He acknowledged trying
who previously oversaw known for smaller “kei” cars to deliver products quickly
Daihatsu President Masahiro Inoue speaks during a press Toyota’s business in South and off-road vehicles. to keep up with demand
conference in Tokyo Monday, April 8, 2024. America. No major accidents have was one reason for the
Associated Press His predecessor at Daihatsu been reported in connec- misconduct.q