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Most parents don’t expect their child to have a credit score at all, let alone one that’s wrong. But in today’s world of digital records and data leaks, errors tied to your child’s credit profile are more common than you might think. Whether due to identity theft, misreported data, or faulty algorithms, a miscalculated credit score can affect your child’s financial future before they ever apply for a loan. That’s why it’s critical to know how your child’s credit score can be built incorrectly and what you can do to prevent long-term damage. Here are seven surprising ways your child’s credit score might be miscalculated—and how to catch the problem early.
1. Identity Theft Creates False Credit History
One of the most common reasons your child’s credit score appears—and is miscalculated—is due to identity theft. Fraudsters target children because their credit profiles are “clean slates” with no existing activity, making them ideal for opening unauthorized credit lines. If a criminal uses your child’s Social Security number to apply for loans or credit cards, the resulting data gets attached to your child’s profile. These accounts may go unpaid or default, severely damaging what should be a nonexistent or positive score. Regularly monitoring for credit activity linked to your child can help prevent this hidden form of fraud.
2. Mixed Credit Files with Someone Else
Credit bureaus sometimes mistakenly merge data from individuals with similar names, birthdates, or Social Security numbers. This is known as a “mixed file,” and it can create a credit history that doesn’t actually belong to your child. In some cases, a child’s credit report may show activity from an adult with similar identifying information, which can result in incorrect scores and negative marks. These mistakes are difficult to detect without reviewing the report directly. It’s a good idea to check if your child has a credit file by age 16, especially before major milestones like applying for student loans or scholarships.
3. Reporting Errors by Creditors
Even when accounts are legitimate, reporting mistakes by lenders can negatively affect your child’s credit score. This might include accounts listed as delinquent when they’re not, incorrect balances, or payment dates that don’t reflect reality. A common issue occurs when a parent opens a credit account in their child’s name—intending to help build credit—but fails to manage the account properly. These missteps can stay on the report for years, lowering your child’s score and affecting their eligibility for future credit. If you’ve opened an account for your child, review the statements and reports carefully.
4. Fraudulent Co-Signing or Family Misuse
Unfortunately, sometimes credit harm comes from within the family. A relative may use a child’s Social Security number to co-sign on a loan or open utility accounts—often without malicious intent, but the impact can be just as damaging. If the account is unpaid or sent to collections, your child’s credit score takes a hit. Because children typically don’t check their credit, these issues can go unnoticed until adulthood. One of the easiest ways to protect your child’s credit score is by placing a credit freeze until they are ready to use it.
5. Incorrect Personal Information on File
Inaccurate personal information, such as a wrong birthdate or misspelled name, can confuse credit systems and result in misattributed activity. For example, if a database lists your child’s birth year incorrectly, credit accounts tied to adults with similar information could get matched to your child. These errors affect not only your child’s credit score but also their ability to correct future records. Always verify your child’s legal documents and shred any paperwork with sensitive information to limit the chance of data entry errors or information leaks.
6. Credit Builder Accounts Gone Wrong
In an effort to build early credit, some parents open secured cards or credit-builder loans in their child’s name or as joint accounts. While the intention may be positive, any mismanagement—like missed payments or overuse—can lead to a low or inaccurate credit score. Even well-managed accounts may not work as expected if the credit bureaus do not properly link the account to the child’s credit profile. It’s important to understand how different lenders report activity and whether it’s being credited accurately to your child. Before opening any financial product tied to your child, research thoroughly and monitor results closely.
7. Unmonitored Credit Activity Over Time
Credit reports are not just snapshots—they evolve over time. If there is fraudulent or mistaken activity and no one is monitoring the credit report, these inaccuracies can grow unchecked. What starts as one account can turn into a pattern that drastically lowers your child’s score. Because young people often don’t apply for credit until they’re older, they may discover problems too late. A lack of proactive oversight is one of the biggest threats to your child’s credit score accuracy. Consider setting up alerts or periodic checks to ensure the data stays clean.
A Score Worth Protecting from Day One
Your child’s credit may not seem like a concern while they’re still in school, but it’s far easier to prevent damage than to repair it later. When credit issues strike early, they can delay everything from buying a first car to qualifying for student housing. By understanding how your child’s credit score can be miscalculated and checking for errors regularly, you’re giving them a stronger financial foundation. Even if no report exists yet, placing a credit freeze and monitoring their Social Security use can stop problems before they start. A clean credit history is one of the best gifts you can give your child, right alongside good advice and support.
Have you ever checked your child’s credit score? What surprised you most? Share your thoughts or tips in the comments below.
Read More:
3 Reasons to Teach Your Children The Importance of Good Credit
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Catherine is a tech-savvy writer who has focused on the personal finance space for more than eight years. She has a Bachelor’s in Information Technology and enjoys showcasing how tech can simplify everyday personal finance tasks like budgeting, spending tracking, and planning for the future. Additionally, she’s explored the ins and outs of the world of side hustles and loves to share what she’s learned along the way. When she’s not working, you can find her relaxing at home in the Pacific Northwest with her two cats or enjoying a cup of coffee at her neighborhood cafe.
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