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Frequent Contributor
brother7
Posts: 380
Registered: ‎02-06-2009
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Adding my brother as AU: good idea?

[ Edited ]

My credit score is in the 680s, not that bad. My brother's score is worse, in the low 600s. In the next 1-2 months, I expect to be in the 700s due to <10% util. Once I break into the 700s, I'm going to apply for the Costco TrueEarnings card.

 

I want to help my brother out and get him on track to an improved credit score. He shops at Costco all the time, always paying by company check (his own company). When I get my TrueEarnings card, I'm thinking of adding him as AU. Then whenever he shops at Costco, he'll use the card and write a check to me instead.

 

The advantage I see to this is that 1) he gets to rebuild his credit and 2) someone earns cashback for his purchases. :smileywink:

 

Questions

  1. Under what circumstances would my score be negatively impacted?
  2. Are there any circumstances in which his score would be negatively impacted by my actions? For example, what if he used the card, paid me by check but I never used the check to pay off the card. Who's score would be hurt, mine, his or both?
  3. Will anything I do with my own cards, either the TrueEarnings card or my other cards, affect his score?
  4. Regarding cashback rewards, who gets credited, him or me?  I'm guessing him.
  5. In the case of AU, do we get 2 separate cards with 2 different cc numbers and 2 different statements, or is everything lumped into a single statement under a single cc number?
I guess I really don't understand how actions of the primary user and the AU can affect the other. Help me understand.

 

Message Edited by brother7 on 03-18-2009 07:50 AM

11/02/2012 Peak - EQ 790 (ScoreWatch EQ FICO)
12/08/2014 Current - TU 823 (Walmart MasterCard TU FICO 08 Classic)
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Senior Contributor
score_building
Posts: 3,577
Registered: ‎01-10-2008

Re: brother7 adds brother


brother7 wrote:

My credit score is in the 680s, not that bad. My brother's score is worse, in the low 600s. In the next 1-2 months, I expect to be in the 700s due to <10% util. Once I break into the 700s, I'm going to apply for the Costco TrueEarnings card.

 

I want to help my brother out and get him on track to an improved credit score. He shops at Costco all the time, always paying by company check (his own company). When I get my TrueEarnings card, I'm thinking of adding him as AU. Then whenever he shops at Costco, he'll use the card and write a check to me instead.

 

The advantage I see to this is that 1) he gets to rebuild his credit and 2) someone earns cashback for his purchases. :smileywink:

 

Questions

  1. Under what circumstances would my score be negatively impacted? if either of you charge and pay late or don't pay.  ultimately you are still responsible to pay the ccc if he charges and doesn't pay you (not him).
  2. Are there any circumstances in which his score would be negatively impacted by my actions? For example, what if he used the card, paid me by check but I never used the check to pay off the card. Who's score would be hurt, mine, his or both? Both.  but he can be removed as an AU and his score will recover.
  3. Will anything I do with my own cards, either the TrueEarnings card or my other cards, affect his score? anything bad that is reported from a card of yours which he is an AU on is bad for him too.
  4. Regarding cashback rewards, who gets credited, him or me?  I'm guessing him. your account is credited as the primary account holder, he has no account to credit.  it is your acct and card.  he is just AU.
  5. In the case of AU, do we get 2 separate cards with 2 different cc numbers and 2 different statements, or is everything lumped into a single statement under a single cc number?  2 separate cards same acct number and statement.

it is an honorable thing to do just be aware of the potential pitfalls and make sure he is too.

FICOS:
06/13 EX 765 (PSECU) EQ 771 (DCU) TU 779 (Barclays)
Established Contributor
Pappy214
Posts: 794
Registered: ‎08-05-2008
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Re: Adding my brother as AU: good idea?


brother7 wrote:

 

Questions

  1. Under what circumstances would my score be negatively impacted?
  2. Are there any circumstances in which his score would be negatively impacted by my actions? For example, what if he used the card, paid me by check but I never used the check to pay off the card. Who's score would be hurt, mine, his or both?
  3. Will anything I do with my own cards, either the TrueEarnings card or my other cards, affect his score?
  4. Regarding cashback rewards, who gets credited, him or me?  I'm guessing him.
  5. In the case of AU, do we get 2 separate cards with 2 different cc numbers and 2 different statements, or is everything lumped into a single statement under a single cc number?
I guess I really don't understand how actions of the primary user and the AU can affect the other. Help me understand.

 

Message Edited by brother7 on 03-18-2009 07:50 AM

1. High utilization, late payments, the initial INQ and the initial AAoA being reduced by opening a new card are all ways you can be negatively impacted.

2. If you don't pay then both scores go down. The AU is not responsible in a court of law, but everything effects them just as it effects you.

3. Not unless he is also an AU on those cards.

4. You get the rewards I believe.

5. Two seperate cards yes, but they have the same number, only one statement goes to you.

 

Hope this helps.

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