Credit Cards
Greenlight Family Cash Cardholders Can Help Teens Build Credit
A popular platform for teaching children and young adults about managing their finances is now offering a way for them to also built credit via their parents.
What’s new:
Adults with the Greenlight Family Cash Card can now help their teens build credit even before they turn 18. As Greenlight has announced, cardholders can add their children as authorized users. This will then allow teens to establish credit history while also helping their parents earn up to 3% cashback on card purchases. Parents will still be able to set monthly spending limits and get purchase alerts to ensure they aren’t surprised by their teen’s usage.
As Greenlight notes, 84% of 18 and 19 year olds have zero credit history. This can then impact their ability to get a card of their own, obtain financing, or even rent an apartment. While Greenlight is aiming this new ability at teenage customers, their FAQ does state that there’s currently no minimum age requirement for authorized users.
About the Greenlight Family Cash Card:
With the Greenlight Family Cash Card, parents can earn up to 3% back on their purchases. In a unique twist, the percentage of cashback earned will vary depending on a cardholder’s spending in a given billing cycle. Those who spend less than $1,000 in purchases on the card over the course of a month will earn 1% back on those purchases. However, those who spend between $1,000 and $4,000 in a month will earn 2% back and those who purchase more than $4,000 a month with the card can earn the 3% maximum. Furthermore, there’s currently no cap on how much cashback cardholders can earn.
In order to apply for the Greenlight Family Cash Card, an active Greenlight membership is required. These plans start at $4.99 a month for Greenlight Core. Other options include Greenlight Max for $9.98 per month and Greenlight Infinity at $14.98 per month.
What they’re saying:
Commenting on the updated feature, Greenlight co-founder and CEO Tim Sheehan said, “At Greenlight, we’re committed to helping families build healthy financial futures, and we know credit is a big part of financial wellbeing.” Sheehan added, “With Greenlight’s new credit builder, teens can easily build credit before they turn 18, setting them up with a strong financial foundation and better opportunities.”
My thoughts:
Adding a teenager as an authorized user can be a great way to give them a leg-up on building credit of their own. Thus, it’s great to see that Greenlight has added this as an option and created tools to help give parents peace of mind when it comes to putting a credit card in their teen’s hands. That said, while the Greenlight Family Cash Card may be built for the job, adults may be able to add their children to credit cards they already have from other issuers. Whether adults look into that option or consider adding the Greenlight Family Cash Card to their wallet in hopes of earning up to 3% cashback, this is a great reminder that it’s worth reviewing how you can help your teen learn and build credit ASAP.
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