Ways to Monitor Your Child’s Credit Score

Quick answer

• Children typically don’t have credit scores until they apply for credit themselves.
• You can monitor for fraudulent activity on their Social Security number.
• Consider a credit freeze or fraud alert on their Social Security number.
• Review their credit reports annually for any unexpected activity.
• Be aware of the risks of adding a child as an authorized user.
• Consult with a financial advisor or credit expert for personalized advice.

What to check first (before you act)

Credit report accuracy

Before taking any action, it’s crucial to understand that your child likely does not have a credit report or score in the traditional sense. A credit report is generated when an individual applies for credit and a lender reports their activity to credit bureaus. If you believe there might be an existing report due to identity theft, you’ll need to verify its existence.

Utilization and balances

If, hypothetically, a credit report exists for your child (due to fraud), you would look for any accounts that are open and have outstanding balances. High utilization (using a large percentage of available credit) and large balances are negative indicators. For a child’s report, any activity at all is a red flag.

Payment history

A consistent history of on-time payments is a cornerstone of a good credit score. If your child’s report shows any accounts, you would examine the payment history for late payments. For a child, any payment activity at all is unusual and warrants investigation.

Recent inquiries

Credit inquiries occur when a lender checks your credit report. Numerous recent inquiries can negatively impact a credit score. If you find inquiries on a child’s report, it suggests someone may be trying to open credit in their name.

Time horizon

For most children, the relevant time horizon for credit is far in the future, when they might apply for their first car loan, student loan, or credit card. Any activity occurring before they are of age to apply for credit themselves is a sign of potential identity theft.

Step-by-step (how to monitor for your child’s credit)

1. Understand the Basics of Credit Reports

What to do: Educate yourself on how credit reports and scores are generated. Understand that credit is typically built through responsible borrowing and repayment by an individual.
What “good” looks like: For a child, “good” means no credit report or score exists until they are old enough and choose to build credit themselves.
Common mistake: Assuming your child automatically has a credit score or report.
How to avoid it: Remember that credit is earned through financial activity, which children typically do not engage in.

2. Check for Identity Theft Early

What to do: Monitor official government communications and financial statements for any unusual activity related to your child’s Social Security number (SSN). This includes mail from financial institutions or government agencies.
What “good” looks like: Receiving no unexpected financial solicitations or official notices addressed to your child.
Common mistake: Waiting until your child applies for credit to check for issues.
How to avoid it: Be proactive and vigilant from a younger age, especially once they have an SSN.

3. Obtain a Copy of Your Child’s Credit Report (If Suspected Fraud)

What to do: If you suspect identity theft, you can request a free copy of your child’s credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion). You will need to prove your identity and your relationship to the child.
What “good” looks like: Receiving a report that shows no accounts or activity, or a report that clearly details fraudulent accounts that you can then dispute.
Common mistake: Not knowing how to request a report for a minor.
How to avoid it: Visit the credit bureaus’ websites or AnnualCreditReport.com for instructions specific to minors and suspected fraud.

4. Review the Report for Any Accounts or Activity

What to do: Carefully examine the credit report for any accounts that are listed, especially those opened recently or that you did not authorize. Look for any personal information that is incorrect.
What “good” looks like: The report is blank or shows only information you recognize as belonging to your child (e.g., a specific type of account opened for educational purposes with your co-signature, though this is rare for young children).
Common mistake: Skimming the report and missing subtle signs of fraud.
How to avoid it: Take your time and compare every detail on the report against your own records and knowledge of your child’s financial life.

5. Dispute Any Inaccurate or Fraudulent Information

What to do: If you find errors or fraudulent accounts, initiate a dispute with the credit bureau that issued the report. Provide all necessary documentation to support your claim.
What “good” looks like: The fraudulent information is removed from the report after investigation.
Common mistake: Not providing sufficient evidence during the dispute process.
How to avoid it: Gather all supporting documents, such as police reports (if applicable), letters, and any other proof that the activity is not yours or your child’s.

6. Consider a Credit Freeze

What to do: Place a credit freeze (also known as a security freeze) on your child’s Social Security number with each of the three major credit bureaus. This restricts access to their credit file, making it harder for identity thieves to open new accounts.
What “good” looks like: The freeze is successfully placed, and you receive confirmation from each bureau.
Common mistake: Forgetting to freeze with all three bureaus.
How to avoid it: Follow the specific instructions for placing a freeze with Equifax, Experian, and TransUnion individually.

7. Place a Fraud Alert

What to do: You can also place a fraud alert on your child’s SSN. This requires lenders to take extra steps to verify the identity of anyone applying for credit in your child’s name.
What “good” looks like: The fraud alert is active and documented by the credit bureaus.
Common mistake: Believing a fraud alert is as strong as a credit freeze.
How to avoid it: Understand that a fraud alert is a warning, while a freeze is a block. A freeze is generally considered more robust for preventing new accounts.

8. Monitor Annually Through AnnualCreditReport.com

What to do: Even with a freeze, it’s wise to periodically check for any unexpected activity. You are entitled to one free credit report from each bureau annually through AnnualCreditReport.com.
What “good” looks like: The reports you obtain show no unauthorized activity.
Common mistake: Not taking advantage of the free annual reports.
How to avoid it: Set a reminder to request these reports each year, perhaps staggering them (e.g., one bureau every four months).

9. Educate Your Child About Credit

What to do: As your child gets older, have age-appropriate conversations about credit, debt, and responsible financial behavior.
What “good” looks like: Your child understands the importance of financial responsibility and the implications of credit.
Common mistake: Waiting too long to discuss financial matters.
How to avoid it: Start early with basic concepts and gradually introduce more complex ideas as they mature.

10. Be Cautious About Authorized User Status

What to do: If you add your child as an authorized user on your credit card, understand that their credit report will reflect the activity on that account. Ensure your own credit habits are impeccable if you choose this route.
What “good” looks like: The authorized user status is managed responsibly, and your child’s report reflects positive payment history if they are building credit.
Common mistake: Adding a child as an authorized user without having excellent credit yourself.
How to avoid it: Only consider this if you have a perfect payment history and low credit utilization on the card.

What affects your score (plain language)

• Payment History: Paying bills on time is the biggest factor. Late payments hurt.
• Amounts Owed (Credit Utilization): How much credit you’re using compared to your limits. Keeping balances low is good.
• Length of Credit History: How long you’ve had credit accounts open. Older accounts are generally better.
• Credit Mix: Having a variety of credit types (like credit cards and installment loans) can be beneficial, but isn’t a primary driver.
• New Credit: Opening many new accounts in a short period can temporarily lower your score.
• Inquiries: When you apply for credit, lenders check your report. Too many “hard” inquiries can signal risk.
• Public Records: Bankruptcies or liens can significantly damage your score.

What NOT to do while improving credit: Do not close old credit card accounts, as this can reduce your average account age and increase your credit utilization ratio. Avoid applying for multiple credit cards or loans at once, as this can lead to numerous hard inquiries. Never miss a payment, even on small debts, as this is heavily weighted in score calculations.

Common mistakes (and what happens if you ignore them)

Mistake	What it causes	Fix
Not checking for identity theft early	Fraudulent accounts opened in child’s name, damaging their future credit	Regularly monitor mail and financial statements for unusual activity related to your child’s SSN.
Assuming a child automatically has a score	Misunderstanding the credit system, leading to complacency about fraud	Understand that credit is built through financial activity and is not automatic.
Failing to freeze credit with all bureaus	Identity thieves can still open accounts with bureaus that weren’t frozen	Place a credit freeze with Equifax, Experian, and TransUnion individually.
Not disputing fraudulent activity promptly	Fraudulent accounts remain, negatively impacting future credit possibilities	Act quickly to dispute any errors or unauthorized accounts with the credit bureaus.
Adding a child as an authorized user without good credit	Passing negative payment history to the child’s report, harming their score	Ensure your own credit is in excellent standing before adding anyone as an authorized user.
Relying solely on a fraud alert	A fraud alert is a warning; a freeze is a stronger preventative measure	Use a credit freeze as the primary protection, and a fraud alert as a secondary layer.
Not educating older children about credit	Child may make poor financial decisions when they start building credit	Have age-appropriate conversations about credit, debt, and responsible financial management.
Forgetting to unfreeze credit when needed	Child unable to open legitimate accounts (e.g., student loan) when they need to	Keep track of when and why you froze credit, and remember to temporarily lift the freeze if necessary.
Not checking annual credit reports	Unnoticed fraudulent activity can accumulate and cause more damage	Utilize AnnualCreditReport.com to get free reports and review them annually.

Decision rules (simple if/then)

• If your child has an SSN and is under 18, then you can place a credit freeze on their file because it’s a proactive measure against identity theft.
• If you discover an account on your child’s credit report that you did not authorize, then dispute it immediately with the credit bureau because it’s likely fraudulent.
• If you are considering adding your child as an authorized user on your credit card, then first ensure your credit utilization is very low because their credit will reflect your account’s activity.
• If you are adding your child as an authorized user, then check your own credit report regularly to ensure the account is managed perfectly because any negative marks will appear on their report.
• If your child is approaching college age, then consider a fraud alert in addition to a freeze because it adds an extra layer of verification for lenders.
• If you receive any unexpected mail addressed to your child from a financial institution, then investigate it promptly because it could be a sign of identity theft.
• If you wish to obtain your child’s credit report due to suspected fraud, then be prepared to provide proof of identity and your relationship to the child because bureaus require verification.
• If you place a credit freeze, then remember to keep the PIN or password safe because you will need it to temporarily lift the freeze when your child is ready to build credit.
• If your child is over 16 and wants to start building credit responsibly, then consider co-signing a secured credit card with them because it allows them to learn with your oversight.
• If you are unsure about the process of disputing fraudulent activity, then consult resources from the Federal Trade Commission (FTC) or Consumer Financial Protection Bureau (CFPB) because they offer guidance.

FAQ

Q: Can I check my child’s credit score without their permission?

A: Generally, no. Credit scores are tied to individuals’ SSNs and require their consent or your legal authority (like guardianship) to access. For minors, you’re typically monitoring for fraud, not their active score.

Q: How can my child build credit responsibly when they are young?

A: As they get older, consider adding them as an authorized user on a well-managed credit card, or helping them open a secured credit card. This allows them to learn with your guidance.

Q: What is the difference between a credit freeze and a fraud alert?

A: A credit freeze blocks access to your child’s credit file, preventing new accounts from being opened. A fraud alert is a warning to lenders to take extra steps to verify identity, but doesn’t block applications.

Q: At what age can a child have a credit score?

A: A child typically won’t have a credit score until they are old enough to apply for credit themselves and a lender reports their activity to the credit bureaus. This is usually in their late teens or early twenties.

Q: What if my child’s identity is stolen?

A: If you suspect identity theft, file a report with the FTC, dispute fraudulent accounts with the credit bureaus, and consider placing a fraud alert or credit freeze on their SSN.

Q: Is it safe to add my child as an authorized user on my credit card?

A: It can be, but only if you have excellent credit habits. Your payment history and credit utilization on that card will appear on your child’s credit report, so responsible management is crucial.

Q: How often should I check my child’s credit report?

A: If you’ve placed a freeze or alert, checking annually via AnnualCreditReport.com is a good practice. If you suspect fraud, you may need to check more frequently.

Q: Do I need a lawyer to place a credit freeze for my child?

A: No, you do not need a lawyer. You can typically place a credit freeze directly with each of the three major credit bureaus online, by phone, or by mail.

What this page does NOT cover (and where to go next)

• Specific legal requirements for guardianship or power of attorney related to financial matters. Consult a legal professional.
• Detailed instructions for disputing credit report errors with each specific credit bureau. Visit the bureaus’ websites for their processes.
• Investment strategies for children’s savings. Explore resources on custodial investment accounts.
• Guidance on obtaining credit in your child’s name for specific purposes like student loans. Consult with educational financial aid offices or lenders.
• Tax implications of adding a child as an authorized user or gifting funds. Consult a tax advisor.