Adding AU

[Gibran]

I wanted to add my daughter as an AU on one of my cc's, she's about to go to college so I wanted her to have something in case of emergencies and also help her get some type of credit showing early, but I thought I read somewhere that adding users to your CC will no longer appear on their CR, is this true or no? I'm still going to add her just so she can something, I don't want her app'ing for an CC's right now, but I'm still hoping that it will also build her a credit history. I have a CapOne and HSBC Plat. card...Thanks

[Cleanmachine]

I have added my Son as an Authorized User on several of my credit cards when he was 16-years old. As of this writing the credit bureaus have reported this information on his credit reports.

I have two cards from Chase that he uses for himself and so far has shown responsibility for their use. He will turn 18-years in January. The credit limits of these cards are under $1000.00 each. He has personal use of these cards.

He is also on several other cards but does not have access to these cards. Once he is eligible for his own cards he will be removed as an Authorized User.

[MarineVietVet]

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@Gibran wrote:

I wanted to add my daughter as an AU on one of my cc's, she's about to go to college so I wanted her to have something in case of emergencies and also help her get some type of credit showing early, but I thought I read somewhere that adding users to your CC will no longer appear on their CR, is this true or no? I'm still going to add her just so she can something, I don't want her app'ing for an CC's right now, but I'm still hoping that it will also build her a credit history. I have a CapOne and HSBC Plat. card...Thanks

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Not every CC issuer will add an AU. I know that Cap 1 does. I don't know about HSBC.

Remember to monitor this closely. She will have charging rights as an AU but no legal responsiblity to pay back those charges. But of course none of our kids would ever do such a thing correct? 

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

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[Gibran]

Oh no they would never do such a thing I believe you're right about HSBC, I was logged into my account and I didn't see anything about adding an AU, I did see a link on my CapOne site so I may add her to that card, I'll also check with my CU...My CapOne card only has a $500 CL so that would be just enough for certain emergencies for her.

[debtfree09]

I was just coming to post a similar question...I called to add my son as an AU on my Target card and was told that this will show on his credit report but not affect his credit score but I could add him as a joint cardholder.  I told him to put him on as AU and then we will look at his credit report in a couple months.  If it did nothing for his score then I would change it.  Also I am AU on my husband's HSBC and I recently disputed that they did not report and my 3 HSBC all updated and the one I'm AU on disappeared from TU. When I called TU they said HSBC told them to take it off as I was disputing an AU acct and since it didn't help my credit score to just take it off.  I know that's not right because when I see my total credit limits my husband's card was included and it is also included in my utilization.  Anyone have any insight?  Thanks.

[haulingthescoreup]

FICO 08 was originally going to drop AU cards for scoring purposes, but this has been changed. AU cards continue to be factored into scoring, but there is some unnamed (= secret) attempt to verify that there really is some sort of connection between the cardholder and AU: same last name, same address, etc.

The trick is whether (1) the card issuer even allows AU's and then (2) whether the card issuer reports the AU account to the AU's credit reports. If the account is reported, it should help.

Remember that for a card to be helpful to the AU, it should be:

• older than the AU's average age of accounts, the older the better
• absolutely squeaky clean; maybe something like one 30-day late 5+ years ago, but ideally perfectly clean
• a reasonably healthy credit limit
• reporting $0 or very little each month: don't use it a lot and wait for the statement to post before paying, or the AU (and you) can get dinged for high util

Giving a teenager or college freshman an AU card is a great idea for exactly the reasons that OP mentioned, especially now that the new Credit CARD Act requires a co-signer for those under 21 who want to apply for a credit card but can't prove adequate income. Getting stuck on one of my kids' cards for the rest of their lives sounds like no kind of fun to me.

[Cleanmachine]

Since the new Credit Card Act requires those less than 21 years of age to prove income to justify the issuance of a card or have a co-signer, the best course of action would be to have the child added as an authorized user in lieu of opening a separate account.

My opinion is based on the fact when the child turns 21 years of age the co-signer will not be able to remove his or her name without closing the credit card.

However, each their own as to how to help their children to establish credit.