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Assigning "sub-limit" to authorized user?

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Dw4250
Valued Contributor

Assigning "sub-limit" to authorized user?

Hypothetical question:  If I were to add my younger brother as an authorized user to one of my cards, could I ask the bank to put a limit on his card?  For example, say I have a card that had a $10K limit...could I ask that he be allowed a spending limit up to $1K?

 

My younger brother is currently in college, and I wouldn' mind helping him to both improve his credit with some of his minor expenses (i.e, books; pizza; occasional grocery run; etc).  But he's also a dumb college kid who already has horrible credit, and quite frankly I don't really trust him with access to a large credit limit.  But if I could limit what he could put onto the card, it might be a good way for me to earn reward points while also helping him build his credit as an AU (without putting my own credit in jeopordy).

 

Does anyone know if this is possible?

 

Message 1 of 6
5 REPLIES 5
credit-hunter
Frequent Contributor

Re: Assigning "sub-limit" to authorized user?

AMEX has AU program that has that feature.

Message 2 of 6
eagle2013
Established Contributor

Re: Assigning "sub-limit" to authorized user?

Only for AMEX - I think.

I know, I would do the same for my little sister in college - but only if it was a capped limit.

Message 3 of 6
WNA888
New Contributor

Re: Assigning "sub-limit" to authorized user?

It is only possible with AMEX since each AU is assigned a different card number, so they can tracked exactly which AU purchased what.    It cannot be done with issuers who use VISA and Mastercard because the magnetic strip is encoded with the same card number as the main account holder.  You can set a limit online at AMEX.  

Barclaycard TU FICO Score : 826 [1/12/15]
Message 4 of 6
Dw4250
Valued Contributor

Re: Assigning "sub-limit" to authorized user?


@eagle2013 wrote:

Only for AMEX - I think.

I know, I would do the same for my little sister in college - but only if it was a capped limit.


Sounds like AMEX will do it.  I would definitely prefer this method to co-sign/joint account (as I said I love him to death, but he has shown himself to be highly irresponsible with credit, and I don't want to mingle our finances/credit).  

 

I can give him a $500 limit (or whatever), and if he maxes that out, it won't kill MY credit in the process.  I have been depositing money into his account, but this seems like a much better solution.  Plus it allows me to make sure the money I give him for books isn't being spent at the bar or on new sneakers...Smiley Wink )

 

Thanks everyone!

Message 5 of 6
Built2last
New Contributor

Re: Assigning "sub-limit" to authorized user?

The Huntington Voice MC has this option as well. You can set a CL for an AU starting at $25 up to your full CL.
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