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Additional Cardholder on Account

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Anonymous
Not applicable

Additional Cardholder on Account

If my relative makes me an additional cardholder on his Visa or Mastercard account (NOT Joint),
 
and anything I charge on the card is still the financial responsibility of only my relative, and not me,
 
does this affect my credit rating in any way if I have this card, as the additional cardholder?
 
I was once told that having too many credit cards can possibly affect my ability to secure a loan or a mortgage.
 
Does being an additional cardholder count, on a credit card account?
 
Or does it count only if you are actually the account holder, responsible for all charges on the account?
 
Thank you.
Message 1 of 10
9 REPLIES 9
Creditaddict
Legendary Contributor

Re: Additional Cardholder on Account

they don't count authorized users anymore or atleast they won't for sure starting in 2008, but I believe TU already tossed out authorized users... so you would be fine to have the card and charge away... all on them!
Message 2 of 10
haulingthescoreup
Moderator Emerita

Re: Additional Cardholder on Account

TU still has my AU card on it, and it's still counting its history (which is why I went on it.)

BTW, I noticed on the BofA website that if you are AU, you "might" be held responsible for the charges that you make. (Usually an AU card has a slightly different number from that of the main card.) You might want to check this out on whichever card you AU on.

There is generally no score benefit in closing cards. You might close cards because they have fees, or you have so many that you're in danger of forgetting payments or something, but generally you do better to toss most of them in the sock drawer and rotate through periodically.

When it comes to mortgage apps, it is true that some lenders get nervous if you have a lot of revolving credit floating around out there, and they might ask you to close some. If this ever happens to you, I would call my CCC's, explain the situation, and ask if you can close the cards during the mortgage app process and re-open them afterwards. If they say yes, you would want to ask:

--will you do a hard inq to re-open?
--how long can the card stay closed? (sometimes mortgage apps drag on)
--will you re-open it with the original history intact? (this is important to your scores!)
--would there be any other positive or negative impact on my account status?

I have seen posts saying that this was done. I would just want to be really, really sure that something wouldn't blow up. Maybe just close the newer cards, so that if magically the CCC won't re-open them after all, at least you don't lose your history.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 3 of 10
Anonymous
Not applicable

Re: Additional Cardholder on Account

The previous answers are of course is assuming that you are indeed an AU. 
 
Many cards will allow you to add a cardholder without actually adding that person as an AU. 
 
So to answer the question as it was phrased no it won't report on your credit report unless you actually are an AU and they have your SS#.  If it is just a card on the account with your name on it and they didn't ask for your SS# then this is the case.
 
If they have your name SS# etc and you were added as an AU then yes it will appear as a tradeline on your CR until FICO08 starts, or the one of the CB's win the FICO wars and banks begin using their own propriatary scoring systems.
 
Van
 
Message 4 of 10
Anonymous
Not applicable

Re: Additional Cardholder on Account



Vanyel wrote:
If it is just a card on the account with your name on it and they didn't ask for your SS# then this is the case.
 


This is a common misconception, but not true.  A SS# is not required for reporting purposes.
 
I am AU on 3 CCs.  Only one of those CCCs asked for my SS# before issuing my card, yet all 3 report.

 
ETA: I have read that reporting can be done with only name and address, but I know that wasn't the case in my situation.  When STBDW apped for a new card, she entered my name as AU.  Nothing else.  Just my name.  My CRs all listed a previous address as my current address.  My address was actually updated on my CR once the new AU CC started reporting.  How did the CCC and/or CRA know they were reporting to the right person's CR?  I have no idea.
 


Message Edited by cheddar on 11-30-2007 10:18 PM
Message 5 of 10
Anonymous
Not applicable

Re: Additional Cardholder on Account

Chase needs nothing but the person's name to add as AU. Also, in my experience most banks will issue the AU the same number as the primary account holder. The only exception I've come across is Amex.
Message 6 of 10
Anonymous
Not applicable

Re: Additional Cardholder on Account



ChaoticKinesis wrote:
Chase needs nothing but the person's name to add as AU. Also, in my experience most banks will issue the AU the same number as the primary account holder. The only exception I've come across is Amex.

Yep.  As a matter of fact, Chase and WaMu are the two CCCs that are reporting my AU status, even though they never got my SS#.
Message 7 of 10
haulingthescoreup
Moderator Emerita

Re: Additional Cardholder on Account

Yes, I'd forgotten--Disc never asked DH for my SSN, either. I wonder if they do a search in credit land on someone with the same name as on the AU app with the same address as the card holder? That would have pulled my info in, although it doesn't explain cheddar's updated address. Maybe from insurance company info? a little spooky, there...
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 8 of 10
Anonymous
Not applicable

Re: Additional Cardholder on Account

hauling,
 
Perhaps insurance information, as you said, as we do have a joint policy.  We also have a joint bank account, and we have named each other as beneficiaries on all of our individually held retirement assets.  In addition, all the utilities at the cardholder's address are in my name, etc etc.
 
It's not difficult to establish a financial relationship between STBDW and myself.  But you would have to know where to look to find that relationship.
 
I was shocked that the CCC apparently knew where to look.
 
Message 9 of 10
haulingthescoreup
Moderator Emerita

Re: Additional Cardholder on Account

Yep, it's pretty obvious that they have a LOT more resources that what is listed on our weenie little credit reports. I'm guessing insurance and banking, like you said. And they would have known of the relationship (or assumed) as you were going as an AU on her card, I suppose.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 10 of 10
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