Children can have credit scores if their name is on a debt-related account. This can happen through shared accounts, mistaken identity, or even identity theft. Parents can help build their children’s credit early by adding them as authorized users on their credit cards.

To ensure the best outcome, parents should choose a credit card wisely, with a good payment history, low balance, and long account history. Reducing credit utilization ratio before adding a child can also be beneficial. Checking for credit reports and disputing errors or fraud is crucial.

Placing a credit freeze on a child’s credit reports can prevent fraud. Educating children about credit and finances is important to avoid misuse of good credit. Role-playing scenarios, visiting credit report sites, and using debt payoff calculators are effective ways to teach financial literacy to children. Champlain College Center for Financial Literacy suggests starting financial education early.

Read more at Yahoo Finance: How to build your kid’s credit before they turn 18