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Greenlight Family Cash Card Lets Authorized Users Build Credit

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When fintech Greenlight released its Family Cash Mastercard to the public in October 2022, the card stood out for its better-than-average cashback rewards and auto-investing feature. Now the company has announced it will allow account holders to add their children as authorized users on the account, which helps give the kids a head start in building a credit history.

Below, CNBC Select breaks down everything you need to know about Greenlight’s latest offering. 

What’s different about Greenlight’s approach to authorized users

While most other credit cards allow you to add an authorized user, Greenlight has put together a suite of features that make its card particularly helpful for parents wanting to teach their children responsible credit management.  

  • Rewards

    Earn 3% when you spend at least $4,000 in a billing cycle, 2% when you spend at least $1,000 but less than $4,000 in a billing cycle, 1% when you spend more than $1,000 in a billing cycle

  • Welcome bonus

  • Annual fee

    $0 (with Greenlight subscription)

  • Intro APR

  • Regular APR

    20.24 % variable to 28.24 % variable

  • Balance transfer fee

  • Foreign transaction fee

  • Credit needed

Pros

  • Earn up to 3% cash back on all purchases
  • No annual fee
  • Redeem rewards for cash back or investing

Cons

  • No welcome bonus
  • Requires Greenlight membership subscription which starts at $4.99 per month

Set spending limits 

Like many (but not all) cards that allow for authorized users, lets you set a separate spending limit for the authorized user. Account holders can simply enter through Greenlight’s mobile app a monthly limit for the authorized user. This custom limit lets parents give their children some responsibility to manage spending without having to worry that the authorized user will charge too much to the card.

Track spending 

In addition to the spending limit feature, you can also track your child’s spending history. Beyond keeping tabs on what they’re charging to the card, this feature lets you sit down with your child and review together how they’re spending their money. It’s a great way to have a conversation about spending habits and values.

Financial literacy tools 

One way to get your child into a habit is by making it a fun experience. Greenlight’s mobile app offers a Level Up money game for children in grades K-12 to teach them the fundamentals of personal finance, such as budgeting and investing.

Alternatives to the Family Cash Mastercard

If you decide Greenlight’s Family Cash Mastercard isn’t right for you, there are still plenty of other cards that can help build a credit history. CNBC Select’s ranked the Blue Cash Preferred® Card from American Express as the best cash-back card pick for authorized users as it offers various cash-back rewards options, like 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%) and select U.S. streaming subscriptions. Terms apply.

If you’re not looking to add an authorized user and just need a good card that can help increase your credit score, the Chase Freedom Rise℠ is a credit builder card designed for users with limited or no credit history. You can earn 1.5% cash back on all purchases with the card, and could be eligible for a credit limit increase a mere six months after opening your account (pending approval from the lender).

Blue Cash Preferred® Card from American Express

On the American Express secure site

  • Rewards

    6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations, 3% cash back on transit including taxis/rideshare, parking, tolls, trains, buses and more and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit.

  • Welcome bonus

    Earn a $250 statement credit after you spend $3,000 in purchases on your new card within the first 6 months. 

  • Annual fee

    $0 intro annual fee for the first year, then $95.

  • Intro APR

    0% for 12 months on purchases from the date of account opening

  • Regular APR

    19.24% – 29.99% variable. Variable APRs will not exceed 29.99%.

  • Balance transfer fee

    Either $5 or 3% of the amount of each transfer, whichever is greater.

  • Foreign transaction fee

  • Credit needed

Chase Freedom Rise℠ Credit Card

  • Rewards

    Earn unlimited 1.5% cash back on every purchase

  • Welcome bonus

    Earn a $25 statement credit after signing up for automatic payments within the first three months of opening your account.

  • Annual fee

  • Intro APR

  • Regular APR

  • Balance transfer fee

  • Foreign transaction fee

  • Credit needed

Terms apply. Information about the Chase Freedom Rise℠ Credit Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.

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Bottom line

If you’re a parent or guardian looking to boost both your child’s financial literacy and credit history, the Greenlight Family Cash Card could be a great opportunity to achieve that goal. Unlike most credit-builder cards, it offers various educational opportunities that help you walk through the difficulties that come with dealing with finances.

Catch up on CNBC Select’s in-depth coverage of credit cardsbanking and money, and follow us on TikTokFacebookInstagram and Twitter to stay up to date.

For rates and fees of the Blue Cash Preferred® Card from American Express, click here.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.





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