04-07-2009 09:27 AM
Hey gang, I am thinking about adding my semi-adopted daughter to a couple of my cards as an AU and was just curious it there were some cards out there that wouldn't show up on her credit report if I did this. Don't want to waste the time if it won't help her out.
Thanks in advance.
04-07-2009 09:38 AM
04-07-2009 12:18 PM
Authorized User's may not report on your credit, even if the issuing CCC normally does. If the AU has a different address than the account statement address, it is very probable that it will NOT reflect on the AU credit.
Why? Unless the CCC required the SS# of the AU, there is no way to link them to the account. If the AU lives at the same address, then the combination of name and address will likely report the AU on their credit because name and address combination can link it.
So, if you want the AU to be reported, the statement address will have to be added to the AU CR so that it links up.
04-07-2009 12:23 PM
04-07-2009 12:38 PM
The best way for her to establish credit is with a Credit Union and savings secured credit card. If she can't afford to save money, she can't afford credit. My opinion.
Credit Unions are member owned, so they focus on member benefits rather than shareholder returns. They are conservative, but they treat you as an individual more so than big banks.
If this person does not live with you, is not related and does not have use of the card, then you are in fact manipulating her credit. What I mean by this is your sole intention is to improve her credit score when in fact she had done nothing to be more credit worthy.
My advice: This is not the best way to start credit if this is not a daughter, grand daughter, relative and will not actually have any access. Good credit is not quickly established.
There are student cards, starter cards and what are known as "crap" cards that issue to no-credit or bad credit types, but they quickly outlive their usefullness because they don't grow, the fees are high and CL's are stuck submarine.
With the Credit Union, within 6 months to a year she can have her secured card unsecured and have a real financial/credit relationship that will help her in the future and she will be developing good credit habits. Never do for someone what they can do for themselves, just help them get there.
Of course, this is my opinion and many may disagree.
04-07-2009 12:44 PM
04-07-2009 12:51 PM
That would actually do more for her credit than an AU account.
Have her open a savings account with a student credit union or other credit union, then get the loan (you can co-sign) there. This will develop personal credit, establish a good banking relationship and put her on the road to great finances and credit.
You seem to be a great friend!
04-07-2009 12:54 PM
She will not actually be using the card. Are there any legalities I should be concerned with if I list her address as my own seeing as how she is there almost every day visiting my wife and daughter? I by no means want to step into a possibly "grey" area by doing this
Can you be absolutely positive that she won't use the card? I wouldn't list your address as hers. Just giver her social security number to the bank. The bank will end up reporting the tradeline to her credit files. Your address will more than likely get added to her credit reports once the tradeline is inserted in her files using the the SS# identifier.
Once your address is placed in her files, subsequent AU tradelines will probably find their way into her files without benefit of SS#.
04-07-2009 03:40 PM
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