Helping your young adult build a strong credit score – and earn credit card points

Here’s the strategy to help your young adult/older teen build a strong financial future with credit – and earn points along the way!

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With the right supervision, your teen can begin adulthood with:

• An established credit history
• Responsible financial habits
• Experience managing a credit card
• A growing balance of travel points
• A head start toward future travel (study abroad, grad trips, and more!)

✈️ HOW MY 19 Y.O. BUILT 130,000 POINTS AND GOT $400 FREE TOO ALONG THE WAY

1. She opened a Chase Bank Account and got the $400 bonus
2. She opened a Chase Freedom Unlimited during a 30,000 point offer.
3. We used normal expenses to reach the spending requirement.
4. She later opened a Chase Sapphire card during a 100,000 point offer.
5. We used planned expenses, including car insurance and school fees.
6. We paid every statement balance in full.

She now has approximately 130,000 points ready for future travel. 

*Offers change, so always check current terms before applying.

The goal is NEVER to create debt. The goal is to build credit responsibly while earning points from normal spending.

🟢 HOW TO START:  AT AGE 18 or later: Open a Chase Bank Account

Goal: Establish a banking relationship before applying for a first card.

Help your teen open a small checking account at the bank where they eventually apply for a credit card – I suggest CHASE as they have the best travel cards. If you already have a Chase bank account, skip to the next step and apply for a card. 

Chase Checking link: APPLY HERE

Current Chase checking offer: If your teen is employed, have them move their paycheck direct deposit into the new account. Right now, if they open the Chase account above as a new Chase customer and make direct deposits totalling $1000 or more within 90 days they get a FREE $400 added directly to their account.  Easy free money!  

*Always check the monthly fee, direct deposit requirement, minimum balance, and offer deadline.

🔷 APPLY FOR A STARTER CREDIT CARD

Goal: 4 weeks or later after you start your banking relationship with Chase, open a simple first card that helps establish credit and is connected to the bank!

*My top choice: Chase Freedom Unlimited or Freedom Flex: APPLY HERE

This usually has a great OFFER! A teen with some credit history and a Chase banking relationship may qualify. This is why you set up a bank account first. 

Current offer: $200 sign-up bonus after spending $500 in three months (can keep this as cash BUT I advise to hold on as it will equal 20,000 flexible points for travel (Example: I booked airfare recently from LAX to Honolulu round trip = 18,000 points!!) 

* If you did not qualify for the Chase Freedom Unlimited above, you need stronger credit, so you need to start with a starter card. Wait a few days and apply for Chase Freedom Rise card below.  It currently has no annual fee and earns rewards on purchases, but it is easier to apply for and will help with your long-term credit plan.

*These points cannot be transferred to airline or hotel partners until they are combined with points from an eligible premium Chase card – what I recommended you do after 9-12 months (playing the long game).

Chase Freedom Rise: APPLY HERE

Designed for people who are new to credit. This will still help you build credit AND your relationship with Chase for your next card, but does not earn bonuses. 

🟠 WHEN THE CARD ARRIVES: SET UP SAFE SYSTEMS

Immediately:

• Set autopay for the full statement balance
• Turn on purchase alerts
• Add payment reminders
• Review the account together each month

If your teen is paying for their own expenses, you can connect the card to their checking account. If you are helping with approved school or household expenses to help them build credit/earn points, you can pay those charges while still teaching them how the account works.

🔵 AFTER 9 to 12 MONTHS: APPLY FOR THE STARTER TRAVEL CARD

After your young adult has established responsible credit habits, consider whether they may be ready for a travel card such as the best starter card – the Chase Sapphire Preferred. Applying for this one can earn 75,000-100,000 points in a sign-up bonus towards free travel (and offset your family travel budget)! If they may not be ready, you can apply and use on their behalf to meet the spend to help build their credit AND help them earn points to help with their own travel or family travel.

Chase Sapphire Preferred: APPLY HERE

THIS CARD ABOVE is the one you want to have as it earns points you can transfer to other travel providers to get the most value – learn how to start using points here! If you already have an eligible Chase card, you may be able to refer your teen and earn referral points if they are approved. If you don’t have it yet, apply now to get your own stash of points – and then when your young adult is ready, you get referral points from referring them too!

*Approval depends on income, credit history, credit score, recent applications, and bank requirements.

🟣 USE NORMAL EXPENSES TO EARN BONUS

Use expenses you were already planning to pay, such as:

• School fees
• Books and supplies
• Gas
• Groceries
• Car insurance
• Planned travel

With my daughter’s cards, I used normal household and school expenses to help her reach the bonus. You can even look into using it for tuition or room and board for some schools (you may have a % fee for using a credit card, but it could be worth it to earn free points, especially on the Chase Sapphire). *Never spend extra money just to earn points. A bonus is not worth paying interest or creating debt.

🔶BONUS: BEFORE AGE 18: Add Them as an Authorized User

Goal: Start before the age of 18 to help your child begin establishing credit history.

Add your teen as an authorized user on one of your oldest, responsibly managed credit cards. Choose a card that:Has a long history, has no late payments, has a low balance, does not charge an authorized user fee

*You do not have to give your teen the physical card. You can keep it securely stored.  You can use it for your expenses to add some credit use. It is hard to know, as not every bank reports authorized users the same way, but being added to a well-managed account may help establish credit.

MORE TIPS

• TRACK YOUR CARDS: I use the free Travel Freely app to track card opening, bonus requirements, and annual fees.
• RULES TO TEACH: A credit card is not free money. Pay the full statement balance every month. Never carry a balance to build credit. Do not apply for several cards at once. Never spend extra just to earn points. Always report income honestly

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This guide may contain referral links. I may receive a benefit if you apply through one of my links and are approved. You are never required to use my links. Credit card and bank offers change frequently, so always review the current terms directly with the issuer before applying. 

This guide is based on personal experience and is for educational purposes only.