2020-04-01 Real Simple

Q: Am I nuts to consider

adding my college-age

kids as authorized users

to my account?

Wasn’t it just yesterday that your

kids were hawking lemonade for

50 cents a cup? And now they want

access to a line of credit! Dry those

eyes, friend, and consider this:

Adding your children as authorized

users could help them build their

credit and learn good credit hab-

its. Then they’ll have an easier

time getting their own cards in

the future. Granted, you’ll want

to set spending caps and guidelines

(late-night Uber rides? Flights

home?) and discuss who chips

in for what on the monthly bill.

Your kids could also get their

own cards—but with training

wheels. A “secured credit card”

requires a deposit (usually about

$200) that will be drawn against

in the case of a missed payment.

Over time, your kids’ good habits

will raise their scores, so they can

qualify for traditional cards with

higher limits and more rewards

later. (You know, when their pre-

frontal cortices are fully developed.)

Q: I never max out my

cards. Should I care about

increasing my credit limit?

If you’re paying off your monthly

balances on time, your income

supports your spending, and your

account is in good standing, ask

for a limit increase if you regularly

use more than 30 percent of your

available credit, Palmer says (e.g.,

you have a $5,000 limit and your

balance is usually more than

$1,500). “You have a good chance

of getting approved,” she adds.

A high limit isn’t that unusual—the

U.S. average is $22,751, according

to Experian. With an increase,

you can charge more while staying

below that ever-important 30

percent utilization threshold.

THE CREDIT CARD

PERKS YOU’RE

PROBABLY NOT

USING

No two credit cards are

exactly alike (read the fine

print!), but almost all offer

benefits that can save you

money, spare you hassle,

or—hallelujah!—both. See

if you can use your card in

the following places.

AT THE AIRPORT: Free

checked luggage, lounge

access, priority boarding,

credit toward TSA PreCheck

for faster airport screening

AT HOTELS: Late checkout,

room upgrades, compli-

mentary breakfast

AROUND TOWN: Free

entrance to a variety of

museums and cultural cen-

ters, ride-share credits for

Uber or Lyft, presale access

and priority seating for some

concerts and sports events

AT HOME: Protection

against cellphone theft

or damage, free shipping

from certain retailers,

extended warranties

Q: What do I do if my

card is lost or stolen?

To protect your cards, snap photos

of the front and back and save

them in a folder on a password-

protected computer, Sherry says.

“Save them on your phone too,

so if your card goes missing, you

have those numbers and the

customer service hotline at your

fingertips.” The sooner you call

your card issuer and report the

loss, the less likely you are to

be on the hook for any fraudulent

charges. Your issuer will freeze

your card and send you a new

one, sometimes as quickly as

overnight.

If you’re feeling weighed down

by credit card bills, take a look at

experts’ get-out-of-debt advice at

realsimple.com/debtfree.

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