TikTok Credit Hacks To Avoid
Apr 26, 2025
TikTok has a new “credit hack” aimed at parents. Parents open a credit card, slap their kids name on it and call it “building credit early.” Is this a good idea or the worst idea ever? I think you can guess what side of the fence I land on.
This credit hack sounds good on paper.
Boost your kid’s credit score early.
Give them a head start when they’re old enough for a car, apartment or house.
Teach them about responsibility.
Sounds good but let’s continue and talk about the things they fail to mention in the TikTok.
- Parents aren’t perfect.
If you rack up debt, miss a payment, or carry a big balance, you’ve screwed your kids credit score before they graduate high school.
Unfortunately, some parents don’t care about that. A friends ex did that with the children. During the divorce, the one parent had horrible credit, so they used the child’s info to get cable and gas and electric.
They also opened credit cards in the kid’s name.
- Life happens. Emergencies come up, mom loses her job. Medical bills because we’re the only nation where people go bankrupt due to medical bills. Suddenly that credit building card can become a problem for your kid.
Your child is not guaranteed full legal protect if there is fraud on the card. Or even an error. Because they’re not the primary account holder, it becomes harder for them to fix.
- It can create a lifetime of financial trauma.
Your child now starts adulthood with bad credit.
That credit that was supposed to help them with get an apartment, has set them back.
Some companies require a credit check for a job.
Now your child is resentful, feels betrayed, has shame and is now reading every Brene Brown book ever written.
Money trauma is real and often starts at home.
Good intentions don’t erase bad outcomes. What is it – the road to hell is paved with good intentions.
What to do instead.
Teach your kids about money. Don’t just co-sign or add them to debt. These are life lessons they need. A lot aren’t taught this.
Teach them saving and spending wisely. Good credit is a byproduct of good money habits, not hacks.
Let’s talk about credit cards.
Many of the “experts” say you shouldn’t have a credit card or even a credit score. If that works for them, great. Those types of people are making a lot of money. I don’t begrudge them. I do think they’re irresponsible giving that advice to people not making large sums of money.
You need a credit card. You cannot make a large purchase with a debit card. A credit card gives you protection that a debit card doesn’t. You can charge the new dishwasher and pay the bill before you even get the statement.
I love to travel. I can’t rent a car without a credit card.
As a parent myself, I know we want the best for our kids. But real talk here – No TikTok hack is a substitute for teaching them real financial skills.
Let’s set up our kids for success the right way. No short cuts, no disasters hiding in the fine print.
The bottom line is – good credit isn’t built in a day or in a TikTok. That credit hack sounds all cool and sexy until it blows up your child’s financial future.
If you’ve heard of any other ridiculous hacks, please let me know in the comments.
