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How can I convince my parents to add me as an AU?

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CenturyChild
Frequent Contributor

Re: How can I convince my parents to add me as an AU?

Au can be a good thing or a bad thing.

 

Consider this.

 

if they miss a payment for some reason, it will hurt you as well.

 

If they have very high utilization it will hurt you.

 

For example, lets say you have 0 balances on your cards and apply for a new credit card. If the AU card has a 90% utilization rate, it may hurt you depending how much available credit you have by yourself top compensate and if the lender considers that account or not.

 

Ideally, 10% or lower when seeking credit. And try to stay below 30% the rest of the time.

Message 11 of 19
FixMyCredit1992
Established Contributor

Re: How can I convince my parents to add me as an AU?

What I mean is...

 

If their CS is really good, will adding me as an AU make a large improvement?

Farm and Fleet $3,000 (AU) Paypal Extras MC $1,500
Barclay's Apple Visa $1,200 QVC Qcard $800
Amazon Store Card $600 Discover $500
Walmart MC $400 Victoria's Secret $350
Credit One $300 Fingerhut $200
TU Fico 626



Message 12 of 19
CenturyChild
Frequent Contributor

Re: How can I convince my parents to add me as an AU?

Thier credit score means absolutly nothing in regards to yours.

 

The account will help by adding longer postive history, and a higher avaialable total credit to your own report. thats all it will do.

Message 13 of 19
09Lexie
Moderator Emerita

Re: How can I convince my parents to add me as an AU?


@CenturyChild wrote:

Thier credit score means absolutly nothing in regards to yours.

 

The account will help by adding longer postive history, and a higher avaialable total credit to your own report. thats all it will do.


+1

 

Your credit profile will still be the contibuting factor for FICO scoring.  being added as an AUs in the best situations is for a person with little to no credit. In the case of helping a rebuilder, the effect is lessened because of any negative items still appearing on their CR's will be weighed in -derogs effect the score more than AAOA 

Message 14 of 19
compassion101
Established Contributor

Re: How can I convince my parents to add me as an AU?

To answer one of your earlier questions, you would not be responsible for their debts if they pass away because of being an AU.

 

You will not inherit any credit score from them, only the trade line (payment history, utilization) of the credit card that you are AU on. I would pick 2 cards to be AU on.

 

Their credit can never be affected by anything you do. Of course, if you run up money as the AU they will have to pay it off. But if you only want the credit history then they don't even need to give you the card, just sock drawer it. Your credit won't be affected by anything they do unless it is something with the account you are AU on.

Message 15 of 19
drkaje
Senior Contributor

Re: How can I convince my parents to add me as an AU?

AU can be pretty bad if someone has no experience with better limits and new credit.


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Message 16 of 19
ksantangelo23
Frequent Contributor

Re: How can I convince my parents to add me as an AU?

I posted this on your Cardmatch.com thread yesterday. Although slightly out of context in this thread, it should still answer all your questions: Smiley Happy

 

" FixMyCredit1992, assuming the 1992 is your DOB, we are the same age and I understand the frustration you're having. What I'd recommend is, if possible, piggy back on a close family members' credit card or store credit card account by being an authorized user. The accounts will be reported on your CR, your FICO score will adjust according to the entire history of the account, and all future reports. But if you do this, make sure you trust whomever you become authorized with, the account has always been in good standing, and will always carry a low balance. Your score is fragile with a collection, and adding in another negative factor could be crippling. You can gain a negative history just as easily as a good one with this method. Cherry-pick your best options.

 

Also, you'll never be held liable for debts on accounts you're authorized on. And if whoever you ask to be authorized on is worried about you having a copy of their card, cut it up in front of them when it comes in the mail - you just want the account on your report.

 

Things that will immediatly be affected are:

- Your credit birthday (Mine is when I was 13 years old, 2006.)

- AAoA

- Credit Utilization, Total Credit Limit

- Payment History (Good, and bad)

- Total number of credit accounts

- Your true FICO score (some lenders disregard AU accounts, more below)

 

Three CC companies I can personally say will factor AU accounts into applying for a new individual account are: AMEX, Discover, and CapOneChase does not, so avoid wasting HP's with them. (I learned that from another poster here on the forum.) Do your research if you decide to go with other lenders based on applying expecting AU consideration. I'm personally unfamiliar with any other lenders, but any one of the three that I am with now are more than enough for now.

 

This is how I started my credit life and it allowed me to get a couple prime cards, and and a so-so card under my name.

 

But, because there are already 6 HP's on your report, you'll have to wait for some time.

 

I know it can be difficult to resist the "Apply" button, but it needs to be done.

 

Also, head to annualcreditreport.com and at least grab your free yearly Experien credit report. It does not include your FICO score, or any calculated data, just all the information that is used for those calculations. Write down the report number it generates and you can check it an unlimited amount of times with the link below if you check it atleast once every 30 days (learned this from another member on the forums here, too.) I've been checking mine weekly since I got my first card under my name in August.

 

https://www.experian.com/consumer/cac/InvalidateSession.do?code=DISPUTE&channel=8342  "

 

 

AMEX Hilton Ascend: $55,000 | Chase Sapphire Reserve: $30,000 | PNC Points: $17,500 | AMEX BCE (AU): $18,000 | AMEX BCP: $15,000 | US Bank Cash+ $15,000 | AMEX Business Prime: $14,000 | AMEX SimplyCash: $12,000 | Capital One QS: $13,500 | Chase Business Ink: $12,000 | PNC Everyday (AU): $12,000 | JCPenny Store Card: $10,500 | Chase Slate: $9,400 | Capital One QS: $6,500 | (2nd) US Bank Cash+ (2nd): $7,500 | Discover IT: $6,000 | Chase Freedom: $3,500 | Auto Lease: $0/$21,000 | Auto Loan: $0/$18,000 |

TU: 818 EX: 809 EQ: 801

Message 17 of 19
Shinoga
Regular Contributor

Re: How can I convince my parents to add me as an AU?

+1


MY FICO = 690 CK=660 GOAL = 750 and my own house!..Back in the garden

Message 18 of 19
takeshi74
Senior Contributor

Re: How can I convince my parents to add me as an AU?


@FixMyCredit1992 wrote:

 

 

What's a compelling argument to have them add me as an AU? 


There's no such thing as a one-size-fits-all compelling argument.  What compels one may not compel the next.  You can't force your parents to add you.  It's ultimately their decision.  If you want to effectively argue with them then you need to use arguments that are specfically effective for them and we can't tell you what those would be since we don't know them.  You might want to first get a better understanding of all their concerns and address those concerns.

 


@FixMyCredit1992 wrote:

What I mean is...

 

If their CS is really good, will adding me as an AU make a large improvement?


While really good scores on their side can be a positive indicator, their scores aren't relevant to your score.  Becoming an AU doesn't mean that you inherit their scores.  Keep in mind that scores are based on the information in the credit report.  You're not inheriting all of each of their credit reports.  You're just adding the tradeline(s) where you are an AU to your own report.  The tradeline(s) then factor into your own score.  The effect of adding the tradelines all depends on the tradelines and your credit.

 


@compassion101 wrote:

 

Their credit can never be affected by anything you do. 


That's not entirely true.  An AU can run up charges.  Increasing balances increases utilization.  Increased utlilization does affect credit.  If this is one of their concerns then I'd also suggest having them keep the card(s) if they add you as an AU so you can't rack up charges on their tradelines.  Probably not a bad idea anyway since you'll only want to add tradelines with low utilization (and long and positive history).

Message 19 of 19
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