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Contributor
bobvette
Posts: 78
Registered: ‎02-04-2012
0

Re: Add my son to Amex account

[ Edited ]

Walt_K wrote:

Bay_Area_Joe wrote:

My son is 18, and has no credit to date. I have been trying to get him convinced that credit is a vital tool for future use.  He has opinion that all banks are bad, and that they have destroyed the American economy. 

 

I did get him a checking and saving account when he was 16 at Wells Fargo.  Maybe a secured Wells card with 5k starting deposit. 

 

He just does not understand the importance of a long established excellent credit history for buying a car or getting a home in 5 to 10 or so years.

 

I am thinking of getting him on my Amex account, have the card sent to me, and he never gets to use it, I would use every once in awhile for gas or something like that.

 

My account was established in 1991.  If I add him, will he get benefit of my 21 years of history ?

 

Any input would be appreciated.

 

Thank you



Aside from backdating, there is the benefit of simply having a solid tradeline on his report.  Adding him as an AU on any account will provide a benefit (assuming that the lender reports AUs, which most of the big banks do).  The AU account will report to his CRAs and he will inherit all the history of that account good and bad.  A person gets the most benefit when they are added as an AU to an account with a long history and where the person keeps their utilization low on that account.

 

Yes, some lenders can provide less weight to AU accounts, but a lot of decisions are still made automatically and having those AU accounts can push up his FICO score and help him start to establish his own tradelines.


I could be wrong, but I think with AMEX, AU's will show up with the date they were added to the account, not the original account holders information?  If you are correct, my son and daughter will have a credit history longer than their lives, that would be great for them!

AMEX BCP $26,600 CSP $12,000 Pen Fed Plat Rewards $12,000 Citi Thank You Preferred $10,500 Chase Freedom $10,000
Delta CU $10,000 Cap 1 X 2 $7,500 AMEX TE $2,000
HSN $1,700 Kohls $1,000 BBRZ $700

Starting Score: EQ-592 TU-606
Current Score: EQ-728 TU-730
Goal Score: 725

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Valued Contributor
thom02099
Posts: 1,348
Registered: ‎08-30-2011
0

Re: Add my son to Amex account


youngandcreditwrthy wrote:
This is funny...
I've always wanted to have great credit, even before 18... Bc I saw how my parents' unwise financial decisions affected their ability to obtain credit....
Just be sure your child understands how credi can be great or horrible and what it means...

You should put it in terms of something like getting an Iphone 5.

For example, AT&T wanted a friend of mine to pay a $1000 deposit bc she had bad credit.
But they opened my account with no hassle or deposit because I have pretty good credit :-)

Bad credit makes everything cost more just about!

That's a GREAT analogy!  As you said, put it in terms that they can relate to!  BRAVO!

Diners Club Premier MasterCard $50K / AMEX Gold NPSL / AMEX Zync NPSL / AMEX Blue Cash Preferred $14K / Bank of America Cash Rewards Signature Visa $15K / Merrill Lynch Plus Signature Visa $15K / Wells Fargo Propel 365 $15K / Chase Sapphire Preferred Signature Visa $10K / J P Morgan Select Signature Visa $10K / Chase Slate Visa $6K / CITI Diamond Preferred MasterCard $13.2K / Discover IT $10.5K / IberiaBank Select Visa $8K / 1st Command Bank Platinum Visa $7.5K // Home Depot $9.7K / Lowes $10K

EX = 799 EQ = 812 TU = 811 - 11/2014
Valued Contributor
daybreakgonesXe
Posts: 1,864
Registered: ‎11-17-2012
0

Re: Add my son to Amex account

Youngandcreditwrthy. SAME EXACT REASON FOR ME!! My mom ruined not only her own but my dad and grandfathers credit. Bankruptcy 1, maybe 2 times...theyre getting better, but my mother really needs to limit her shopping sprees...luckily im an inspiration for her now. She brags to her accountant that i have a better handle on my finances than she does XD
Capital One Quicksilver World Mastercard $10k | JCPenney Platinum $7.5k | Shell Drive for Five $800 | Chase Freedom Visa Signature $9.8k | TD Bank Easy Rewards Visa Signature $5k | Chase Sapphire Visa Signature $10k | American Express Blue Sky $25k | Discover IT $9.5k | SavingStar American Express $14.8k

FICOS: EX 744 EQ 718 TU 733 Credit Karma (TU) 785 Transrisk 809/990 Credit Sesame (EX) 766 Credit.com (EX) 764 VantageScore 3.0 719 Quizzle (EQ) 721
Moderator
Revelate
Posts: 9,735
Registered: ‎12-30-2011
0

Re: Add my son to Amex account


bobvette wrote:

Walt_K wrote:

Bay_Area_Joe wrote:

My son is 18, and has no credit to date. I have been trying to get him convinced that credit is a vital tool for future use.  He has opinion that all banks are bad, and that they have destroyed the American economy. 

 

I did get him a checking and saving account when he was 16 at Wells Fargo.  Maybe a secured Wells card with 5k starting deposit. 

 

He just does not understand the importance of a long established excellent credit history for buying a car or getting a home in 5 to 10 or so years.

 

I am thinking of getting him on my Amex account, have the card sent to me, and he never gets to use it, I would use every once in awhile for gas or something like that.

 

My account was established in 1991.  If I add him, will he get benefit of my 21 years of history ?

 

Any input would be appreciated.

 

Thank you



Aside from backdating, there is the benefit of simply having a solid tradeline on his report.  Adding him as an AU on any account will provide a benefit (assuming that the lender reports AUs, which most of the big banks do).  The AU account will report to his CRAs and he will inherit all the history of that account good and bad.  A person gets the most benefit when they are added as an AU to an account with a long history and where the person keeps their utilization low on that account.

 

Yes, some lenders can provide less weight to AU accounts, but a lot of decisions are still made automatically and having those AU accounts can push up his FICO score and help him start to establish his own tradelines.


I could be wrong, but I think with AMEX, AU's will show up with the date they were added to the account, not the original account holders information?  If you are correct, my son and daughter will have a credit history longer than their lives, that would be great for them!


You are correct Bob, Amex changed that sometime in the past few years to the addition of an ACM (Amexese for a AU) the date associated with the tradeline will be the date they were added, and they won't inherit prior history.

 

Amex is a one-off on this, every other lender I'm aware of is as Walt describes.

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
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Valued Contributor
Dustink
Posts: 3,097
Registered: ‎10-02-2012
0

Re: Add my son to Amex account

[ Edited ]

Bay_Area_Joe wrote:

My son is 18, and has no credit to date. I have been trying to get him convinced that credit is a vital tool for future use.  He has opinion that all banks are bad, and that they have destroyed the American economy. 

 

I did get him a checking and saving account when he was 16 at Wells Fargo.  Maybe a secured Wells card with 5k starting deposit. 

 

He just does not understand the importance of a long established excellent credit history for buying a car or getting a home in 5 to 10 or so years.

 

I am thinking of getting him on my Amex account, have the card sent to me, and he never gets to use it, I would use every once in awhile for gas or something like that.

 

My account was established in 1991.  If I add him, will he get benefit of my 21 years of history ?

 

Any input would be appreciated.

 

Thank you


I would say, do not help him unless he asks for help.

 

Giving him credit history may cause problems. He needs to understand the credit system and have a desire to build a good credit score. If he just ends up with good credit; he may mess it up later on, not understanding how hard it is to obtain.

 

Usually it is best to let somebody build on their own.

Too many INQs & low AAoA so I'm off to tend the Garden.     Age:23    


     $17k       $8.5K          Closed          $19k      $6.5k        $24.2k        Closed         $5k       Closed     $8.5k        Closed      @2.49%
Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009
0

Re: Add my son to Amex account


Revelate wrote:

bobvette wrote:

Walt_K wrote:

Bay_Area_Joe wrote:

My son is 18, and has no credit to date. I have been trying to get him convinced that credit is a vital tool for future use.  He has opinion that all banks are bad, and that they have destroyed the American economy. 

 

I did get him a checking and saving account when he was 16 at Wells Fargo.  Maybe a secured Wells card with 5k starting deposit. 

 

He just does not understand the importance of a long established excellent credit history for buying a car or getting a home in 5 to 10 or so years.

 

I am thinking of getting him on my Amex account, have the card sent to me, and he never gets to use it, I would use every once in awhile for gas or something like that.

 

My account was established in 1991.  If I add him, will he get benefit of my 21 years of history ?

 

Any input would be appreciated.

 

Thank you



Aside from backdating, there is the benefit of simply having a solid tradeline on his report.  Adding him as an AU on any account will provide a benefit (assuming that the lender reports AUs, which most of the big banks do).  The AU account will report to his CRAs and he will inherit all the history of that account good and bad.  A person gets the most benefit when they are added as an AU to an account with a long history and where the person keeps their utilization low on that account.

 

Yes, some lenders can provide less weight to AU accounts, but a lot of decisions are still made automatically and having those AU accounts can push up his FICO score and help him start to establish his own tradelines.


I could be wrong, but I think with AMEX, AU's will show up with the date they were added to the account, not the original account holders information?  If you are correct, my son and daughter will have a credit history longer than their lives, that would be great for them!


You are correct Bob, Amex changed that sometime in the past few years to the addition of an ACM (Amexese for a AU) the date associated with the tradeline will be the date they were added, and they won't inherit prior history.

 

Amex is a one-off on this, every other lender I'm aware of is as Walt describes.


Didn't realize this.  It's hard to keep up with all this stuff.  Thanks for the correction.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Valued Contributor
bs6054
Posts: 1,673
Registered: ‎11-11-2012
0

Re: Add my son to Amex account


Dustink wrote:

Bay_Area_Joe wrote:

My son is 18, and has no credit to date. I have been trying to get him convinced that credit is a vital tool for future use.  He has opinion that all banks are bad, and that they have destroyed the American economy. 

 

I did get him a checking and saving account when he was 16 at Wells Fargo.  Maybe a secured Wells card with 5k starting deposit. 

 

He just does not understand the importance of a long established excellent credit history for buying a car or getting a home in 5 to 10 or so years.

 

I am thinking of getting him on my Amex account, have the card sent to me, and he never gets to use it, I would use every once in awhile for gas or something like that.

 

My account was established in 1991.  If I add him, will he get benefit of my 21 years of history ?

 

Any input would be appreciated.

 

Thank you


I would say, do not help him unless he asks for help.

 

Giving him credit history may cause problems. He needs to understand the credit system and have a desire to build a good credit score. If he just ends up with good credit; he may mess it up later on, not understanding how hard it is to obtain.

 

Usually it is best to let somebody build on their own.


A lot of financial writers would agree with Dustink, generally the advice is don't co-sign or make ANYONE an AU without being fully aware of the risks to your score, your relationship etc.   That said, presumably you know your son well enough to decide that this is sensible.

 

To be, a big red flag is: He has opinion that all banks are bad, and that they have destroyed the American economy.   Now that is a viewpoint held by many, and may well be right, but to me it doesn't suggest that keeping credit pristine to keep the banks happy would be his first priority

Frequent Contributor
jake619
Posts: 496
Registered: ‎11-13-2012
0

Re: Add my son to Amex account

Of all the things a parent can contribute to their childs future, as it relates to this board, incubating positive credit is up there.  And for what cost?  The time it takes to AU them?  I know I would have appreciated it.

 

 


GangnamFICO wrote:

Because the chicks dig it when I throw down the card to the waiter and...it comes in handy if I'm short on cash until payday and need a short spot. AMEX gets the booty, and that's important when you're a Pirate.


Minor vulgarity edit --Rev



Senior Contributor
BearsAndTurtlesRtheBest
Posts: 3,694
Registered: ‎10-02-2012
0

Re: Add my son to Amex account

there will come a point in life where we will have to get credit cards if he wants to succeed in this world. tell him then how is he gonna get a car? or even a house? IM GLAD THAT IM INTERESTED IN CREDIT AT MY AGE(18 YRS OLD) beacuse not everyone sees the importance. But yeah It will hit him someday :smileyhappy: Better late than never!!

Valued Contributor
bs6054
Posts: 1,673
Registered: ‎11-11-2012
0

Re: Add my son to Amex account


BearsAndTurtlesRtheBest wrote:

there will come a point in life where we will have to get credit cards if he wants to succeed in this world. tell him then how is he gonna get a car? or even a house? IM GLAD THAT IM INTERESTED IN CREDIT AT MY AGE(18 YRS OLD) beacuse not everyone sees the importance. But yeah It will hit him someday :smileyhappy: Better late than never!!


 

Well, depending on the political/philosophical mindset, that may not be true.   He may never want a house (property ties you down and limits options, rent/squat etc), save and buy a cheap used car, or of course, earn huge amounts of money so it doesn't matter.

 

In the US (from 2010): Some 29 percent of poll respondents reported that they do not have a credit card. That was a more than 10 percent jump from the number of respondents who reported having no credit cards in June 2009. http://www.creditcards.com/credit-card-news/credit-card-industry-facts-personal-debt-statistics-1276...

 

Again, myfico isn't the representative universe.


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