All About Gas Credit Cards

All About Gas Credit Cards

Gas credit cards can be one option to earn a rebate on gas purchases, either in the form of cash back or other types of credit card rewards. This can make gas purchases help with your budgeting efforts.

There are many different types of gas credit cards, each with their own pros and cons. Some gas credit cards work only at one particular chain of gas stations, while others offer rewards no matter where you buy gas and may even give rewards on some non-fuel purchases. Understanding the different types of gas credit cards can help you choose the best gas credit card for your specific situation.

Key Points

•   Gas and gas station credit cards may help earn rewards on gas purchases to aid budgeting.

•   Options for these credit cards include general rewards and co-branded gas station cards.

•   Fleet cards are available for businesses with large vehicle fleets.

•   It’s wise to select cards based on spending habits to reap the most rewards.

•   Credit-building potential varies by card type and whether they report to the credit bureaus.

What Is a Gas Credit Card?

A gas credit card is a term that can refer to a number of different types of credit cards. One might be a standard credit card that earns bonus credit card points on all gas purchases. Another type of gas credit card is one that is co-branded with an actual gas station and gives rewards at that gas station. There are also gas credit cards that are designed more for companies with large fleets of vehicles.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score?

How Do Gas Credit Cards Work?

Gas credit cards work in much the same way that any other credit cards work. You are extended a line of credit which you can use to make purchases. If you don’t pay what you owe at the end of your billing cycle, you are assessed interest for the privilege of carrying a balance.

Most gas credit cards run on a major credit card processing network like Visa, Mastercard, or American Express. That means that even if you might think of it as a gas credit card, it can be used anywhere those types of cards are accepted.

Types of Gas Credit Cards

There are a few different types of gas credit cards put out by various credit card issuers. Here are a few of the most common types of cards to consider if you want to save money on gas.

Recommended: Can You Buy Crypto With a Credit Card?

General-Purpose Gas Credit Cards

General-purpose gas credit cards are credit cards that earn rewards on a variety of different purchases. They may have gas as one possible bonus category, or they may earn the same high rewards rate on all purchases.

Gas Station Co-Branded Credit Cards

A gas station co-branded credit card is generally marketed and primarily branded for one particular gas station (BP, Shell, Marathon, etc.). These types of cards are often referred to as “co-branded” because they are branded with both a gas station brand and the brand of the bank that issues it. While these are also usually part of a major credit card processing network like Visa or Mastercard, the rewards they earn are typically targeted to the main “branded” gas station chain.

Fleet Gas Cards

A fleet gas card or fleet fuel card is a different type of gas credit card entirely, and is targeted more toward businesses that have to manage a large fleet of vehicles. A transportation manager can give fleet cards to individual employees, allowing them to pay for things like fuel, repairs, and maintenance without having to pay out of pocket and get reimbursed. The transportation manager can then track and account for all of the disparate charges centrally.

Recommended: What is a Charge Card?

How Different Types of Gas Cards Compare

If you’re choosing a rewards credit card, there are a few questions that you’ll want to ask yourself:

•   Ease of use: Is this a gas card that can only be used at one particular gas station, or can it be used anywhere?

•   Rewards: Does the reward structure of the card match up with your spending patterns?

•   Fees: What kind of fees does the card have? Avoiding credit card fees is an important part of choosing the right card.

Recommended: Tips for Using a Credit Card Responsibly

Which Type of Gas Credit Card Is Right for You?

Trying to determine what’s the best credit card for gas for you? Here’s a look at two of the most popular options among the different types of credit cards for gas.

Who Gas Rewards Cards Are Best For

The following types of people might be best served by a general purpose credit card that happens to offer rewards on gas purchases:

•   Consumers who frequently shop at multiple different gas stations.

•   Infrequent travelers who spend much more in other categories than they do at gas stations.

•   People looking to maximize their credit card miles or cash back.

Who Gas Station Credit Cards Are Best For

These consumers might find that the best gas credit card for them is a gas station credit card:

•   Consumers who spend an above average amount at gas stations.

•   Travelers who frequently fill up at the same gas station chain every time.

•   Employees who are given a gas station credit card by their employer and are mandated to use it.

Are Gas Credit Cards Generally Worth It?

For many consumers, gas and fuel purchases are one of the biggest spending categories each month. Just like improving gas mileage, earning cash back or other credit card rewards can help offset some of your fuel cost each month. Just make sure to compare the different gas card options to find the best gas credit card for your situation.

🛈 SoFi does not currently offer gas credit cards but may have other credit cards available that will suit your needs.

The Takeaway

There are a variety of different cards that can be considered gas credit cards. Some gas credit cards are more general rewards credit cards that happen to give a bonus on gas purchases. Other gas station cards have rewards targeted to one particular gas station brand. Still other gas cards are used by companies with large fleets to help manage their transportation expenses. Compare options, and see if one can suit your needs.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

Is there a credit card only for gas?

There are some gas credit cards that work only at specific gas stations and do not work for other purchases. Other gas cards are branded with a particular gas station’s color and branding (such as BP, Shell, or Marathon) but are still part of a major credit processing network (like Visa, Mastercard, or American Express). That means that you can use the card anywhere those networks are accepted.

What is the best fuel card to get?

The best fuel card to get is the one that maximizes the rewards based on your unique and specific spending patterns. If you always shop at the same gas station, you might be better off with a card that’s specific to that brand. If you shop at different gas stations or want to earn rewards on non-fuel purchases, you may want to consider a more generic rewards credit card that happens to also earn rewards on gas purchases.

Do gas cards help build credit?

Whether gas cards help build credit depends on specifically what kind of gas credit card it is. If it is a store-specific card that is not part of a major credit card processing network, it likely does not report purchases and credit history to the major credit bureaus. In that case, it likely will not help you build your credit history.


Photo credit: iStock/kckate16

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Guide to Paying Property Taxes With a Credit Card

Guide to Paying Property Taxes With a Credit Card

If you enjoy the benefits of earning rewards with your credit card, you may be interested in paying property taxes that way. After all, it can be one of the largest expenses for many homeowners and can yield a large amount of points or other perks. Also, some people may not have the cash available for taxes on the due date and want to use a credit card to pay their bill over time.

The good news is that many states, counties, and other local jurisdictions do allow you to pay your property taxes with a credit card. However, in many cases, there is a processing fee associated with a credit card payment. Depending on the fee that’s charged and the card that you use, paying your property taxes with a credit card may or may not be a good idea. Take a closer look.

Key Points

•   Many states and counties permit property tax payments via credit card, though a processing fee is often applied.

•   Credit card payments can earn rewards, but fees may negate these benefits.

•   Paying taxes with a credit card can assist in meeting spending requirements for bonuses.

•   Using a credit card for taxes might impact credit score and high-interest debt levels if not managed properly.

•   Local tax authority policies should be checked for accepted payment methods and associated fees.

Can You Pay Property Taxes With a Credit Card?

Many states and counties allow you to pay property taxes with a credit card. In some cases, they process any payments directly. Other jurisdictions may partner with a third-party processing company to handle payments.

In many cases, a processing fee will apply. This fee is generally around 2% of the payment or higher. For example, Hamilton County in Ohio charges a 2.35% fee for credit card payments, while Cook County in Illinois charges a fee of 2.10%.

Recommended: Does Applying for a Credit Card Hurt Your Credit Score?

Pros and Cons of Paying Property Taxes With a Credit Card

For many homeowners, property taxes and mortgage payments are some of the largest expenses in their budget. So it makes sense that you might try to offset some of the cost by earning credit card rewards on the purchase.

For instance, if you get cash back, this could allow you to recoup some money when you pay your taxes.

However, there are potential downsides to paying property taxes with a credit card to take into consideration as well. For one, you may pay a processing fee. You also could owe interest charges and experience effects to your credit score, depending on how you manage your credit card bill.

Here’s a closer look at the pros and cons of paying property taxes with a credit card:

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Pros:

•   Can earn credit card rewards

•   May help you meet requirements to earn a signup bonus on a new credit card

•   Could use a 0% introductory APR offer from a new card or by doing a balance transfer to pay your tax bill over time

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Cons:

•   Will likely owe a processing fee

•   Could raise credit utilization, which could negatively impact your credit score

•   Can face high interest rates if you don’t pay off your credit card bill in full

Recommended: How to Avoid Interest on a Credit Card

Paying Your Property Taxes With a Credit Card: 4 Steps

Just like paying your mortgage with a credit card, paying your property taxes with a credit card usually takes a few simple steps. While the exact steps will vary depending on your local tax authority, here is the basic flow.

1. Enter Your Property Tax Information

First, you will enter your property information. Many counties have assigned all property into specific parcel IDs. If you’re not sure about your parcel ID, you can usually look that up with your address or other identifying information.

2. Enter or Confirm Any Required Personal Information

Once you have entered in the required information pertaining to the parcel you’re paying property taxes on, you may be asked to enter or confirm some of your personal information. This helps to ensure that you are paying for the correct piece of real property.

3. Choose Your Payment Method and Amount

Next, you will choose the credit card you want to use. Because most jurisdictions charge a processing fee to pay your property taxes with a credit card, you’ll want to be careful about which card you use.

There are, of course, many different types of credit cards. If you have a rewards credit card with a rewards rate that’s higher than the fee you’re being charged, that may be a good card to use. You might also consider a new card on which you’re attempting to meet the spending requirement to earn a signup bonus.

If your card has a high spending requirement, paying your taxes with a credit card can help you fulfill that requirement. If you need more time to pay your bill, you might also consider a card with an introductory 0% annual percentage rate (APR) offer.

Once you’ve decided on your card, you’ll enter it into the tax processing website. Similarly to if you were paying bills with a credit card, you’ll likely need to enter your name as it appears on the card, your full credit card number, the expiration date, and the CVV code.

Recommended: Can You Buy Crypto With a Credit Card?

4. Submit Your Payment

The final step in paying taxes with a credit card is to submit your payment. If a confirmation page is shown, you may want to print it for your records. That can help you in case there’s a dispute about whether your property taxes have been paid. You also may be able to select an email confirmation.

Types of Cards You Can Use to Pay Property Taxes

There are many credit cards that you can potentially use to pay property taxes. Visa and Mastercard are the two most prevalent, but many tax authorities accept American Express, Discover, or other types of credit cards. Check with your local tax authority to see what types of cards you can use in your area.

You may be able to use a debit card as well. While the benefits of credit cards include rewards and other perks, fees are often lower for debit cards than credit cards.

Recommended: What Is a Charge Card?

The Takeaway

It’s usually possible to pay property taxes with a credit card, though it depends on the policies and laws in your specific jurisdiction. However, many states and counties charge a processing fee to accept credit card payments for property taxes, and the fees may be higher than the value of any rewards that you may earn. Check with your local tax authority to see what options you have in your specific area.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

Which states allow you to pay property tax with a credit card?

Where you can pay property tax with a credit card varies widely depending on a property’s exact location. States, counties, cities, and school districts all may have different laws and policies. If you’re not sure if you are able to pay property tax with a credit card, check with your local taxing authority.

Can you get cash back by paying property tax with your credit card?

Yes, one benefit of credit cards is that you can often earn cash back or other rewards with each purchase. It’s likely possible to earn cash back (or other credit card rewards) by paying property taxes with your credit card. However, in many cases, you will be charged a processing fee by your local taxing authority. Make sure that the value of any rewards you earn exceeds the cost of the fees you may be charged.

Will paying property taxes with a credit card positively impact your credit score?

Paying property taxes will likely not have a huge impact on your credit score if you pay your statement on time and in full. However, if you pay your taxes with a credit card and then don’t pay the bill when it comes due, that could lead to negative impacts on your credit score.


Photo credit: iStock/xijian

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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Selling Your House to Pay Off Student Loans: A Comprehensive Guide

Almost 43 million Americans have student loan debt, and borrowers owe an average of $37,853, according to the Education Data Initiative. If you’re grappling with student loan payments and feeling overwhelmed, you may be wondering, “Should I sell my house to pay off debt?”

While the idea may be tempting, it has disadvantages and might negatively affect your financial situation. Read on to learn the benefits and drawbacks of selling your house to pay off student loans, and discover alternative options for repaying your debt.

Key Points

•   Weigh the pros and cons before selling a house to pay off student loans.

•   Selling a home eliminates a mortgage and could help you repay your loans, but it also means finding a new place to live that’s affordable.

•   Understand the financial implications of selling a home, including real estate commissions and other costs and potential taxes.

•   Reflect on the emotional and lifestyle impacts of selling your home, including potentially having to relocate.

•   Explore alternatives like student loan refinancing and loan forgiveness programs to manage student loan debt without selling your house.

Understanding the Benefits of Selling Your House to Pay Off Student Loans

A mortgage is the biggest debt most Americans have, and student loans are one of the next biggest. It’s understandable then that some borrowers might consider selling one to help pay off the other. Potential benefits of selling a home include:

•   Getting a lump sum. When you sell your home, you may end up with a decent chunk of money. Of course, you’ll have to pay off your mortgage first, but as long as you have more value in your house than what you owe on your mortgage, you can take the remaining proceeds of the sale and apply it to your student loans. Depending on how much you get from the sale of the property and how much you owe on your loans, you may be able to pay off your student loan debt completely. And if you can’t pay off your loans completely, you may be able to pay off some of them and consider student loan refinancing to help manage the rest.

•   Eliminating monthly payments. By selling your house and paying off your student loans, you get rid of two substantial monthly payments that may have fairly high interest rates. With student loans, some of that interest may have accrued over time. For instance, if you have federal Direct Unsubsidized loans, the interest begins to accrue immediately after the loan is disbursed, and can add up to a sizable amount over time.

•   A financial fresh start. Selling a house can also be a new beginning financially. It could help you get out from under a costly mortgage. You can look for a less expensive place to live, and create a new budget accordingly. Repaying student loans will further dial down the debt you owe. You may also be able to direct more money to your child’s college fund or save more for retirement.

Recommended: Guide to Student Loan Refinancing

Factors to Consider When Selling Your House to Pay Off Student Loans

Along with the potential upsides, however, there are a number of disadvantages to selling your house. It’s important to understand the drawbacks before making such a big decision.

How much you can get for your house is one of the most important factors when determining whether it makes sense to sell. The price you can ask for your home depends on market conditions, supply and demand, and mortgage rates, among other things. Do some research to figure out the current market value of your home. Look at what comparable homes in your area are selling for. Think about whether you could make enough from the sale of your house to pay off what you owe on your mortgage and repay your student loans.

Next, since you’ll need to find a new place to live, explore the different housing options available. You might need to downsize to a more affordable home, move to a less expensive area, or rent instead of buying.

Finally, think about how selling your home could affect your lifestyle. You might end up in a smaller space with less living space, which means you may have to sell some of your furniture. If you have to relocate to a different area, your commute to work might get longer. Think through the various scenarios and make sure you’re comfortable with them.

Navigating the Process of Selling Your House to Pay Off Student Loans

If you decide to move ahead with selling your house, finding the right real estate agent can be critical. Hiring a professional who knows the market can help you price your home for a sale and take some of the stress out of what can be a complex process. Just be aware that there will be costs involved, including a commission to the agent.

You’ll also need to prepare your house for a sale. Clean and declutter your home to make it look bigger and more appealing. Outdoors, mow the lawn, trim the bushes, and generally tidy up so that your house has curb appeal.

Familiarize yourself with the legal and financial aspects of a home sale. For instance, once you have an offer on the house, a potential buyer might ask you to make repairs before they purchase the home. There are also closing costs to consider, as well as the real estate agent’s commission. And if you sell your house for more than you paid for it, you may have to pay capital gains tax (see more on that below). Make sure you understand what’s involved in selling your home and what you are responsible for legally and financially.

Mitigating Challenges and Risks When Selling Your House to Pay Off Student Loans

Talking about selling your home to pay off student loans is one thing. Actually doing it is another. You may feel sentimental about your house, especially if you’ve lived there for a while. As much as you can, try to emotionally detach yourself from your home. Focus instead on the positive, such as getting out of debt and the fresh start ahead of you.

On a more practical level, there may be a capital gains tax on the profit you make from the sale of your home if you sell it for more than you paid for it. Capital gains tax generally depends on your taxable income, your filing status, and how long you owned the home before you sold it. There is an IRS exemption rule, often referred to as a primary residence exclusion, that may help you avoid paying some or all of the capital gains tax. Do some research and check with a financial professional to see if you might qualify for the exclusion.

Exploring Alternatives to Selling Your House to Pay Off Student Loans

Rather than selling your house to pay off student loans, there are some other ways to help manage, and potentially even reduce, your student loan payments. Here are some options to consider.

Student Loan Refinancing

If you have private student loans, or a combination of federal and private loans, student loan refinancing lets you combine them into one private loan with a new interest rate and loan terms. Ideally, you might be able to secure a new loan with a lower rate and more favorable terms. If you’re looking for smaller monthly payments, you may be able to get a longer loan term. However, a longer term means you will likely pay more in interest overall since you are extending the life of the loan.

On the other hand, if your goal is to refinance student loans to save money, you might be able to get a shorter term and pay off the loan faster, helping to save on interest payments. Just be aware that if you refinance federal loans, they will no longer be eligible for federal benefits like federal forgiveness programs.

A student loan refinancing calculator can help you determine if refinancing makes sense for you.

Student Loan Consolidation

If you have federal student loans, a federal Direct Consolidation loan allows you to combine all your loans into one new loan, which can lower your monthly payments by lengthening your loan term. The interest rate on the loan will not be lower — it will be a weighted average of the combined interest rates of all of your consolidated loans. Consolidation can streamline your loan payments, and your loans will still have access to federal benefits and protections. However, a longer loan term means you’ll pay more in interest over the life of the loan.

Income-driven Repayment Plans

With an income-driven repayment (IDR) plan, your monthly student loan payments are based on your income and family size. Your monthly payments are a percentage of your discretionary income, which usually means they’ll be lower. At the end of the 20- or 25-year repayment period, depending on the IDR plan, your remaining loan balance will be forgiven.

Loan Forgiveness Programs

You might be able to qualify for student loan forgiveness through a state or federal program. For instance, with Public Service Loan Forgiveness (PSLF) program, borrowers with federal student loans who work for a qualifying employer such as a not-for-profit organization or the government may have the remaining balance on their eligible Direct loans forgiven after 120 qualifying payments under an IDR plan or the standard 10 year repayment plan.

Also, be sure to check with your state to find out what loan forgiveness programs they might offer.

The Takeaway

Student loan debt can be a major financial burden for borrowers, and selling your home to get out from under that obligation may sound appealing. But selling your house is a major decision. You may be eliminating a mortgage, but you’ll have to find a new affordable place to live. Plus, there are costs involved with the sale of a home and there may be tax implications to deal with as well. Weigh all the pros and cons carefully before selling your home to pay off student loans.

And remember, there are other ways to manage student loan debt, including loan forgiveness, income-driven repayment, and student loan refinancing. Explore all the different options to decide what works best for you. You may be able to reduce your loan payments and keep your home.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.


With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.


Photo credit: iStock/Quils

SoFi Student Loan Refinance
SoFi Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891. (www.nmlsconsumeraccess.org). SoFi Student Loan Refinance Loans are private loans and do not have the same repayment options that the federal loan program offers, or may become available, such as Public Service Loan Forgiveness, Income-Based Repayment, Income-Contingent Repayment, PAYE or SAVE. Additional terms and conditions apply. Lowest rates reserved for the most creditworthy borrowers. For additional product-specific legal and licensing information, see SoFi.com/legal.


SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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What Is the Minimum Age to Be an Authorized User on a Credit Card?

What Is the Minimum Age to Be an Authorized User on a Credit Card?

How old an authorized user has to be really depends on the credit card issuer. Some set the minimum age for an authorized user on a credit card at 13, while others require that an authorized user is 15 or even 16. Many issuers don’t specify a minimum age requirement at all.

In other words, it’s largely up to the adult’s discretion whether a minor seems old enough to become an authorized user. While it can serve as an educational tool and help build their credit, it also can lead to racking up debt and impacting both parties’ credit. You’ll want to make sure you know what you’re getting into in order to determine if it’s the right arrangement for you.

Key Points

•   The minimum age for an authorized user on a credit card varies by issuer, typically ranging from 13 to 16, with some issuers having no minimum age requirement.

•   Adding a minor as an authorized user can help them build credit early, but it also carries risks like increased debt and potential negative impacts on both parties’ credit scores.

•   Educating minors on credit card basics, setting spending limits, and monitoring their usage is important to ensure responsible behavior.

•   Some credit cards may charge a fee for adding authorized users, especially premium cards, so it’s crucial to check with the issuer.

•   Removing a minor as an authorized user is straightforward, usually requiring a call to the credit card company to request the change.

How Old Does an Authorized User Have to Be?

While the minimum age to get a credit card of your own is 18, an authorized user on a credit card can be as young as 13.

That being said, the minimum age for an authorized user on a credit card ultimately depends on the credit card company, as each issuer has its own age requirements. Some set the minimum age to 13 years old, while others may make authorized users wait to get a credit card at 16 or 15 (SoFi requires an authorized user to be age 15 or older). Some credit card issuers don’t specify a minimum age for authorized users on credit cards.

Factors to Consider Before Adding a Minor as an Authorized User

Before you add a minor as a credit card authorized user, consider the following factors.

Whether You’ll Have to Pay a Fee

Depending on the particular type of credit card and issuer, you might have to pay an additional annual fee to add an authorized user. For example, the Chase Sapphire Reserve card currently charges a $75 fee to add an authorized user.

Check with your card card issuer to see if you might get hit with a fee for adding authorized users to your account.

If They’re Old Enough to Handle the Responsibility

Even if you can add an authorized user as young as 13 to your card, doing so might not be in your best interest — or theirs. For instance, a child in their early teens might not have a basic grasp of managing finances, or they might not be mature enough to handle the financial responsibility and abide by basic credit card rules.

If you’re adding your minor as an authorized user to help them establish credit, a few years is enough time for them to be on their way. Plus, should you slip on your credit, it could also impact your child’s credit.

Recommended: How to Avoid Interest on a Credit Card

How You’ll Track the User’s Purchases

Most credit cards don’t issue unique card numbers to each authorized user. That means if you have multiple authorized users on an account, you won’t be able to easily figure out who made which purchases. Before you go ahead with adding an authorized user, make sure you have a system worked out so you’re not stuck covering their spending (unless you want to).

Whether You’ll Give Access to the Card

While you can give an authorized user their own card, you don’t have to, especially if you’re worried about how they’ll spend with it. If you’re strictly adding a child to your card to help them build credit, there’s no need to hand them a card. They don’t need to have access to your credit card number, either.

Steps to Add a Minor as an Authorized User

First and foremost, you’ll want to carefully weigh the pros and cons of adding someone under the age of 18 as an authorized user. If you have decided that you want to proceed, you’ll need to do the following.

1. Educate the Child About Credit Card Basics

Before adding a minor as an authorized user and giving them the privilege to spend on your card, sit them down and walk them through how credit cards work. For instance, you’ll want to explain what a credit limit is, how interest rates work, what one’s financial responsibility is when putting purchases on a card, and why it’s beneficial to build credit.

Recommended: What Is the Average Credit Card Limit?

2. Reach Out to the Credit Card Company

Next, you’ll need to contact the credit card company to let them know you’d like to add an authorized user to your card. You can do so by calling the number on the back of the card or by logging onto your account online.

You usually need to provide the following information about the individual you’re adding as an authorized user:

•   Name

•   Date of birth

•   Social Security number

•   Address (for them to receive the card)

•   Additionally, you may be able to set spending limits or restrictions for the authorized user at this point in the process.

3. Check Your Account

To make sure the authorized user was correctly added, log on to your account on the issuer’s website or through the app. Double-check to make sure the minor’s name and details are all correct. You might also receive an email notification informing you of this change.

The Cost of Adding an Authorized User

Many credit card issuers do not charge a fee to add an authorized user to an account. However, premium credit cards or cards that already charge annual fees, may charge an annual fee for adding authorized users. This fee may apply per authorized user, or you may pay a flat cost for up to a certain number of users.

Beyond this potential fee, there are other costs you could incur by adding an authorized user. For instance, additional purchases made by the authorized user could cause you to rack up a balance. Plus, their activity can impact your credit utilization, which could hurt your credit score.

Recommended: What Is a Charge Card?

Pros and Cons of Adding a Minor as an Authorized User

Here’s an overview of the advantages and downsides of adding a minor as an authorized user to your credit card:

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Pros:

•   Can help build credit

•   May allow you to earn more rewards

•   Serves as an educational tool

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Cons:

•   May cause you to rack up debt

•   Can’t easily track who’s making purchases

•   Can impact credit of both primary cardholder and authorized user

Pros

Adding an authorized user can have the following benefits:

•   Can help build credit: A major upside of adding a minor as an authorized user is that it can help them establish credit at a young age. They’ll have a more firm financial footing as a result.

•   May allow you to earn more rewards: Another person making purchases on your card means there’s greater potential to earn more rewards. You can gain rewards more quickly than if you would if you were the sole user.

•   Serves as an educational tool: You may find that adding a minor as an authorized user to your card can help them learn credit basics and how to manage credit card debt, especially if you coach them through the process.

Recommended: Can You Buy Crypto With a Credit Card?

Cons

Beware of the potential downsides of having an authorized as well:

•   May cause you to rack up debt: It can be easy to rack up debt and overspend on the credit card with an authorized user. This is especially possible if you’re giving a child access to your card who is still wrapping their head around financial basics.

•   Can’t easily track who is making the purchases: Because purchases aren’t tracked by the authorized user, it might be tough to figure out which person was responsible for which transaction with your card. This is particularly tricky when you have, say, a joint account user and several authorized users.

•   Can impact credit of both primary cardholder and authorized user: If having additional users on your card equates to carrying a higher balance, that can up your credit utilization ratio. As credit usage makes up 30% of your credit score, you’ll want to keep that ratio under 30%, preferably closer to 10%. Beyond potentially hurting your credit, also know that any irresponsible credit behavior on your card can hurt your authorized user’s credit. For instance, if you are late on a credit card payment, both your credit and the credit of the minor you added to your card can suffer.

Recommended: When Are Credit Card Payments Due?

Tips for Managing a Minor as an Authorized User

If those possible downsides are making you nervous, here are a few things you can do to ensure your minor uses their privileges responsibly:

•   Set limits. Talk to your child and give them an amount they can spend on the card each billing cycle. Also, determine if they’ll be responsible for helping you pay off their share. Or perhaps you might consider an alternative arrangement, such as doing chores around the house to cover purchases they made on their credit card. Hash this out beforehand.

•   Treat the card as a teaching tool. Sit down with your child and go over basics of a credit card, such as how interest fees work, how to read a billing statement, and what can happen if you’re late or miss a payment. You’ll also want to teach them how repayment works.

•   Set alerts. To keep an eye on your child’s spending, consider setting alerts on your credit card. You can set it up so you get notifications for transactions over a certain amount, or any transactions made online, in person, or over the phone.

Recommended: Tips for Using a Credit Card Responsibly

Removing a Minor as an Authorized User

Removing a minor as an authorized user from a credit card is a relatively simple and painless process. To do so, you call the number on the back of the card and let them know the name of the person you’d like taken off. If you have several authorized users on a card, be sure to specify which card user you’re removing.

It’s not a bad idea to leave a paper trail and send a letter to the credit card company reiterating that you’ve requested the change over the phone.

The Takeaway

The minimum age for an authorized user on a credit card varies depending on the credit card issuer. Some require an authorized user to be 13, while others set the age limit at 15 or 16 or even have no formal limit at all. Before adding a minor as an authorized user on a credit card, you’ll want to carefully weigh the pros and cons before doing so. If you decide to add a child as a user, set some ground rules and teach them credit and financial basics beforehand.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

Do some issuers allow authorized users with no minimum age?

Usually the minimum age requirement to add an authorized user to a credit card is at least 13. However, there are several credit card issuers that don’t note a specific minimum age.

How many authorized users can I add to my account?

It depends on the credit card issuer. Some allow, say, between four and seven, while others have no limit as to how many authorized users you can add to a credit card. The number of authorized users might also depend on what type of card it is, such as a rewards or travel credit card.

Is an authorized user relationship or a joint account holder better?

It depends on what kind of privileges you want the additional card user to have and the reason you’d like to add them. If you want to help build someone’s credit and not have them responsible for making payments, then an authorized user could be the better route. If you’d like the user to be equally responsible for making payments and have access to make changes on the account, a joint account holder might make sense.


Photo credit: iStock/Manuel Tauber-Romieri

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

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What To Do if Someone Opened a Credit Card in Your Name

What To Do if Someone Opened a Credit Card in Your Name

If someone has opened a credit card in your name, it’s important to act fast. There are clear steps you can take to stop the fraudster in their tracks and avoid any harm to your credit score and bank account.

Read on to learn what is likely happening and how to protect yourself.

Key Points

•   Act quickly by filing reports with the credit card issuer, FTC, police, and credit bureaus if someone opens a credit card in your name.

•   Consider placing fraud alerts or freezing your credit to prevent further unauthorized activity.

•   Regularly monitor your credit report and bank activity to detect any signs of identity theft early.

•   Family members can also commit identity theft; it can be important to address the issue even if it involves a relative.

•   Taking swift action can help avoid long-term financial damage and protect your credit score.

Finding Out That Someone Opened a Credit Card in Your Name

You won’t always immediately know that someone has stolen your identity. However, there are several ways to stay on top of potential identity theft and keep it from getting out of control.

Watch out for some of these common signs of credit card fraud:

•   Bills in the mail for an unfamiliar account in your name

•   Email or text notifications for a new account opening that you did not initiate

•   Notification that an account in your name has gone to a debt collections agency

•   Notification from an identity monitoring service or free credit monitoring service that a new account has been opened

•   Unfamiliar activity while reviewing your free credit report

•   An unexplained drop in your credit score

•   Credit application rejection because of a drop in your score

These signals can indicate that a form of bank fraud is underway.

Recommended: Credit Card Scams You Should Know About

7 Steps to Take When Someone Opens a Credit Card in Your Name

If someone opens a credit card in your name, know that it can happen to anyone. In 2023, the Federal Trade Commission (FTC) received 2.6 million fraud reports from consumers, though it’s likely that many more cases of fraud went unreported.

If your identity has been stolen, it’s important to take a breath but remain focused. Knowing what to do if someone applies for a credit card in your name allows you to act quickly. That’s why we’ve put together seven steps to take as soon as you realize someone has opened a credit card in your name.

1. Contact the Bank or Card Issuer

You may not be a customer of the specific financial institution where the credit card was opened, but that doesn’t mean you can’t call them. In fact, the first thing you should do is contact the credit card issuer’s fraud department and file a report. You can usually find the bank’s customer service information online.

The credit card issuer should be able to close the account during the fraud investigation. But if they won’t, you can ask them to freeze the account until the investigation is complete.

Just in case, it’s a good idea to change the username and password of major online accounts, including your email and online bank logins.

2. Report the Identity Theft to the FTC

The report you file with the credit card issuer is the first of many. Next, file an identity theft report with the FTC at IdentityTheft.gov . The FTC will create a recovery plan and issue you an Identity Theft Report, which you may need when working with the credit card issuer and credit bureaus. When you file the report online, you’ll even be able to access form letters to send to creditors about the fraud.

3. File a Police Report

The FTC also recommends filing a police report any time your identity is stolen. The police can provide you with a copy of the report, which may be helpful in closing new accounts, disputing fraudulent charges, and working with credit bureaus to repair your credit report.

Recommended: What Is a Charge Card?

4. Consider a Fraud Alert or Credit Freeze

To further protect your identity, the FTC recommends that you place a free, one-year fraud alert on your credit report or a credit freeze. You should only have to contact one of the three credit bureaus — Equifax®, Experian®, and TransUnion® — and that bureau must coordinate with the other two. Such alerts ensure that lenders are more thorough in verifying your identity before awarding a line of credit in your name.

Victims of identity fraud can choose between two fraud alerts: initial and extended.

•   Initial fraud alerts last one year but don’t require evidence of identity theft; these alert periods are renewable.

•   Extended fraud alerts require the FTC Identity Theft Report and last for seven years. They also remove you from any credit card and insurance offers for the next five years.

You may also want to freeze your credit report with each of the three credit bureaus. To do so, you’ll need to contact each bureau independently. When you freeze your credit report, creditors won’t be able to access it unless you temporarily unfreeze it. This prevents fraudsters from opening credit in your name.

5. Check Your Credit Reports in Detail

As a consumer, you have access to a free credit report every year from AnnualCreditReport.com , and that increases to two a year if you have an extended fraud alert. Creating accounts with individual credit bureaus may also get you access to free credit reports.

It’s important to comb through your credit report upon becoming a victim of credit card fraud. Doing so allows you to identify any other fraudulent accounts or activity you may not yet be aware of.

6. Dispute Fraud with Credit Bureaus

To protect your credit score and remove fraudulent activity found in your report, you’ll need to contact the credit bureaus. You can dispute the fraud online with all three bureaus:

•   Dispute fraud at Experian

•   Dispute fraud at Equifax

•   Dispute fraud at TransUnion

You’ll need a valid copy of your FTC Identity Theft Report for this process, as well as proof of identity and a letter that details which information on the report is fraudulent. Credit bureaus can then work with creditors on any fraudulent account and block them from sending your information to debt collectors.

Recommended: Does Applying for a Credit Card Hurt Your Credit Score?

7. Remove Charges and Close the Account

Some credit card issuers and banks will immediately remove false charges and close the fraudulent account when you contact them in step one. However, if they could not do that when you first filed, it’s a good idea to get back in touch with them now that you have reports from the FTC and local police.

At this point, you should be able to close the fraudulent account and remove any fraudulent charges.

Recommended: Understanding Purchase Interest Charges on Credit Cards

What If a Relative Opens the Card in Your Name?

Because of their close proximity to personal information, family members can more easily commit identity fraud. While it may be hard to believe, family members do occasionally steal relatives’ identity, especially those of children and seniors.

In fact, around 75% of child identity fraud is committed by a friend or family member with access to the child’s information. Identity theft is also a form of elder abuse. Overall, about 72% of the funds lost by those over age 60 involves a person known to the elder, whether a family member, friend, or caregiver.

You now know what to do when someone opens a credit card in your name. But what about when it’s a family member you care about? While it’s ultimately your decision, you risk significant damage to your financial future by not taking action.

Not only will you be on the hook for any expenses in your name and damage done to your credit score, but you’ll also face other future barriers:

•   Your lower credit score may make it more difficult to rent an apartment, get utilities turned on, or find discounts on auto insurance.

•   You may have issues with government support, student loans, and even tax returns if the family member is using your identity in more than one way.

•   You could obtain a criminal record if the family member uses your identity when/if arrested. You also risk being complicit in a crime if you do not report the family member who is committing identity theft.

Ultimately, the steps are the same when reporting a friend or family member, whether it’s a spouse (or an ex), sibling, parent, child, or another relative. You may face one additional task — and that’s confronting the family member before filing your reports.

The Takeaway

When someone opens a credit card in your name, that can indicate identity theft. It’s crucial that you stay calm and act quickly by filing reports with the credit card issuer, FTC, police, and credit bureaus. You may also want to add alerts to or freeze your credit. By taking swift action, you may be able to avoid long-term damage to your finances.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

What happens if someone applies for a credit card in your name?

If someone applies for a credit card in your name, it’s important to remain calm and act fast. You’ll need to file reports with the credit card issuer, FTC, local police, and credit bureaus. You may want to put fraud alerts and/or freezes on your credit report and work closely with the credit card issuer to remove any fraudulent charges and close the account.

How do I stop someone from opening a credit card in my name?

While identity theft can happen to anyone, you can make it more difficult for fraudsters to open a credit card in your name by freezing your credit report. You can also put a fraud alert on your account and use credit and identity monitoring services to get notifications about any suspicious activity. Reviewing your bills, bank activity, credit score, and credit report regularly are all helpful ways to detect fraud.

Can someone open a credit card with my Social Security number?

It is possible for a person to use your Social Security number to open a credit card in your name. Thus, keeping your Social Security number private and secure is important for protecting your identity.


Photo credit: iStock/Prostock-Studio
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

This content is provided for informational and educational purposes only and should not be construed as financial advice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

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