Does the Greenlight card help kids build credit?

Key takeaways

• While the Greenlight debit card does not build credit or report to credit bureaus, Greenlight does help kids learn budgeting, saving, and smart spending habits.

• Teens can start building credit by becoming authorized users on a parent’s credit card, among other methods.

Greenlight is a powerful, all-in-one family financial management tool that offers a debit card for kids, savings, family safety, and investing for beginners – all with parental control and monitoring. Unlike a credit card, Greenlight’s debit card is a prepaid card that parents can load money onto, so kids aren’t directly building their credit score by using Greenlight. They are, however, building the essential financial habits that can foster healthy long-term credit. 

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Can the Greenlight debit card help my child build credit?

No, Greenlight’s debit card doesn’t help your child build credit. Since it’s a prepaid debit card vs. a credit card, it’s not tied to any form of credit reporting. Greenlight doesn’t report credit activity to credit bureaus Equifax, Experian, or TransUnion. 

This means using Greenlight’s debit card alone will not affect your child’s credit score, either positively or negatively. 

Learn more about how to build your child’s credit and why it’s so important. 

How Greenlight uses financial literacy as a stepping stone to stronger credit

Even though using Greenlight’s debit card alone won’t build your kids’ credit scores, credit is a component of healthy financial habits. A strong credit score is a signal to financial institutions that you are fiscally responsible, and it helps you access financial products and services, such as a mortgage, credit card, or car loan. 

With a strong understanding of money and how to use it, you can build and maintain a strong credit score. That’s where Greenlight can help, with tools that build strong financial foundations:

• Budgeting and spending tools, including instant money transfers and spending controls 

• Chores and allowance management to help kids build discipline and start learning how to earn and manage their own money

• Savings tools, including parent-paid interest, round-up savings, savings goals, and interest up to 6%*

• Fun, kid-focused financial literacy game Level Up™

Developing these skills helps prepare kids and teens to handle things like their first paycheck, student loans, and eventually buying a home and saving for retirement.

What are other ways kids and teens can start building credit?

As your child or teen builds these financial skills, here are a few ways they can start building their credit:

• Authorized user: Parents can add their teenagers as authorized users on their credit card. While your child isn’t legally responsible for the debt, any positive payment history will show on their credit report.

• Secured credit card: Requires a cash security deposit, which also serves as the credit limit. This gives teens a safety net as they learn to manage money. Paying on time and keeping balances low can help them build good credit.

• Credit builder loan: This small loan is designed to help people build credit by making regular payments, which establishes a positive credit history with credit bureaus.

• Co-signing a loan: Minors typically cannot take out a loan on their own, but parents can co-sign to help them acquire the loan and build their credit. Remember that co-signing means the parent is also responsible for the debt, so discuss it up front and set clear expectations.

The bottom line

Using the Greenlight debit card can’t help build credit directly, but it can set kids and families up for success. By teaching smart money habits, offering real-time experience with safety nets, and the chance to earn savings rewards* that help grow your money, Greenlight puts families on the right path to build a strong credit history and score. 

Want credit-savvy kids? Help teens learn about credit responsibly with Greenlight, the award-winning educational money app. Try Greenlight, one month, risk-free.^†

Learn to earn, save, and invest together.

With a debit card of their own, kids and teens learn to spend wisely, keep an eye on balances, and track their spending. Big money dreams? Set savings goals and start investing with as little as $1 — with your approval on every trade.

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