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Helping brother with credit

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b1gr3dmachin3
Contributor

Helping brother with credit

Hey all, what's the best way to help my brother start his credit journey? He has no credit history at all, completely starting from scratch. Obviously his only option would be to get a secured card, but I was thinking of putting him as an AU on one or two of my cards. If I do that, does that affect me at all? And how does that affect his score, would he be able to apply for cards right away on his own? Thanks!

BoA 123 $2.5k (11/12) // Discover It $3.9k (7/13) // Citi Forward Student $3.8k (7/13) // Chase Freedom 5k (12/13) // Amex Blue Cash 6k (1/15)

Starting Score: No Credit History (11/12)
Current Score: MyFico 761
Goal Score: 800+


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Message 1 of 21
20 REPLIES 20
Cloudlb
Regular Contributor

Re: Helping brother with credit

Invite him to the FICO forums  so he can learn. Your brother's credit and financial life are his to manage. 

 

I'd never, ever, ever put a family member (or anyone else) on a card as a AU--have heard too many horror stories about that one, but just my opinion. 

Message 2 of 21
Anonymous
Not applicable

Re: Helping brother with credit


@b1gr3dmachin3 wrote:

Hey all, what's the best way to help my brother start his credit journey? He has no credit history at all, completely starting from scratch. Obviously his only option would be to get a secured card, but I was thinking of putting him as an AU on one or two of my cards. If I do that, does that affect me at all? And how does that affect his score, would he be able to apply for cards right away on his own? Thanks!


If you put him on your card as an AU, its possible but not guaranteed that it will help him.  If you want to be safe put him as an AU but don't give hm the card.  That way he can't hurt your score by running up charges.  Just by adding him as an AU won't enable him to apply for a card on his own right away.  Maybe couple months down the road he could try with Cap One.  His best bet is get a secured card or two..

Message 3 of 21
Anonymous
Not applicable

Re: Helping brother with credit

You *can* make him an AU, but you're on the hook if he goes crazy. The better option is to open an account with a credit union, and then apply for a card through them. CUs have been known to give unsecured cards to people who have savings accounts with them, even when they really don't have a credit history. 

Message 4 of 21
Anonymous
Not applicable

Re: Helping brother with credit

Any mistakes he makes as an AU will become your problem. I think the both of you would be better off if he got a secured card.

Message 5 of 21
CreditCuriosity
Moderator Emeritus

Re: Helping brother with credit

First card to add him to is AMEX.. MSD date is set.. Be his biggest help to start... Wouldn't give him the card though

Message 6 of 21
b1gr3dmachin3
Contributor

Re: Helping brother with credit

Thanks all for the replies. I trust my brother and I know he wouldn't do anything like that, he's a smart kid. But it sounds like adding him as AU won't do much for him anyway? Best route would be a secured card and then try for a CU?

BoA 123 $2.5k (11/12) // Discover It $3.9k (7/13) // Citi Forward Student $3.8k (7/13) // Chase Freedom 5k (12/13) // Amex Blue Cash 6k (1/15)

Starting Score: No Credit History (11/12)
Current Score: MyFico 761
Goal Score: 800+


Take the myFICO Fitness Challenge
Message 7 of 21
Dw4250
Valued Contributor

Re: Helping brother with credit

As creditcuriousity said, add him to your AMEX. Locks in date as a "member". The other benefit is AMEX allows you to set spending limits on AU cards. So start him with say...a $500 limit and see how he does. If he screws up, it won't mess up your credit or put you in massive debt.

I added my college age brother to my BCE and it's worked great.
Message 8 of 21
onstar
Established Contributor

Re: Helping brother with credit


@CreditCuriousity wrote:

First card to add him to is AMEX.. MSD date is set.. Be his biggest help to start... Wouldn't give him the card though


Yup. And yup. Especially the bolded part.

BK DC 4/9/2018
FICO 08 (4/9/2018): EQ 647 EX 609 TU 620
FICO 08 (10/16/2020): EQ 676 EX 659 TU 653
Message 9 of 21
JSS3
Valued Contributor

Re: Helping brother with credit

Try Capital One. A Platinum card with an annual fee. That's how I and some family members/friends got started. Granted, we all have incomes too.
Message 10 of 21
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