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DVH1980
Posts: 246
Registered: ‎08-24-2011
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Negative affects of adding an AU?

[ Edited ]

Im curious if there is a downside to adding my wife as an AU on my newly aquired Amex card. Her credit is pretty dismal but will be clean in 2 years. My main question is, when I request a CLI in the future, will having someone with less than stellar credit as an AU affect their decision to grant my CLI? Or worst case senario, woud AMex possibly consider closing my account because of the derogs on my AU's report?

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***Amex BCE 3k***USAA Platinum Visa 12k***Barclays Apple 7500k***Veridian CU 10k***Discover It 10k***Bank of America 8k***Amex Zync***USAA Patinum MC 12k***Navy Federal 20k
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Revelate
Posts: 9,472
Registered: ‎12-30-2011
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Re: Negative affects of adding an AU?


DVH1980 wrote:

Im curious if there is a downside to adding my wife as an AU on my newly aquired Amex card. Her credit is pretty dismal but will be clean in 2 years. My main question is, when I request a CLI in the future, will having someone with less than stellar credit as an AU affect their decision to grant my CLI? Or worst case senario, woud AMex possibly consider closing my account because of the derogs on my AU's report?


Your wife being an AU doesn't show up at all on your credit report.  It's irrelevant to the approval process assuming you're applying as an individual rather than for a joint account.

 

I don't think Amex particularly cares regarding AU's (AC's in their terminology): AC's are liable for at least some of the charges accrued as well, so it increases their odds of getting paid.  If they really don't like your wife's credit report, I think anecdotally they've refused to issue the AC, but I wouldn't sweat it as the primary cardholder.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
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nicholasyud
Posts: 1,734
Registered: ‎08-13-2012
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Re: Negative affects of adding an AU?

+1 


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DVH1980
Posts: 246
Registered: ‎08-24-2011
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Re: Negative affects of adding an AU?

Thanks for the reply, I assumed as much but thought I would ask. I wasnt worried about my credit or eport as much as I was about how Amex might veiw it by adding someone with a slew of derogs on their report.

My wallet:
***Amex BCE 3k***USAA Platinum Visa 12k***Barclays Apple 7500k***Veridian CU 10k***Discover It 10k***Bank of America 8k***Amex Zync***USAA Patinum MC 12k***Navy Federal 20k
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MrGoat
Posts: 158
Registered: ‎06-04-2011
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Re: Negative affects of adding an AU?


DVH1980 wrote:

Im curious if there is a downside to adding my wife as an AU on my newly aquired Amex card. Her credit is pretty dismal but will be clean in 2 years. My main question is, when I request a CLI in the future, will having someone with less than stellar credit as an AU affect their decision to grant my CLI? Or worst case senario, woud AMex possibly consider closing my account because of the derogs on my AU's report?


My credit was horrible. Being an AU on my wifes cards actually shows up on my own CR and was a huge help in establishing my credit again. It hasnt affected her credit in any negative way we've been able to discern.

 

EQ FICO 735 as of June 17, 2011
EX FAKO 767 as of April 3rd, 2012
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Established Contributor
Jlu
Posts: 785
Registered: ‎06-12-2012
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Re: Negative affects of adding an AU?

The negative effects of adding an AU goes well beyond possible AA from creditors.

 

Read over in the Relationships and Money forums. Women are strange creatures. Would you give unlimited spending power to a strange creature? lol.

JP Morgan Select $10k | CSP $10k | Citi TY Premier $15k | BofA 3-2-1 $15k | Chase Freedom $10k | Discover IT $10k | Barclaycard $10k | AMEX SPG $5k | AMEX PRG NPSL | NASA Platinum-Advantage $10k | CapOne Quicksilver $3k | Walmart Card $5k | Amazon Card $10k | Chase Auto 1.49% | Joined myFICO 6/12 with a 540 FICO & today I'm over 750!
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djrez4
Posts: 504
Registered: ‎08-28-2012
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Re: Negative affects of adding an AU?


Jlu wrote:

The negative effects of adding an AU goes well beyond possible AA from creditors.

 

Read over in the Relationships and Money forums. Women are strange creatures. Would you give unlimited spending power to a strange creature? lol.


Ah - but Amex lets you put a hard limit on the AC's card.  So, regardless of how strange you think women are, you can be a real man and control her.  :smileytongue:

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MrGoat
Posts: 158
Registered: ‎06-04-2011
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Re: Negative affects of adding an AU?


djrez4 wrote:

Jlu wrote:

The negative effects of adding an AU goes well beyond possible AA from creditors.

 

Read over in the Relationships and Money forums. Women are strange creatures. Would you give unlimited spending power to a strange creature? lol.


Ah - but Amex lets you put a hard limit on the AC's card.  So, regardless of how strange you think women are, you can be a real man and control her.  :smileytongue:


Quitely walks away..... :smileyvery-happy:

 

EQ FICO 735 as of June 17, 2011
EX FAKO 767 as of April 3rd, 2012
Citibank($10,000@10.74%) Discover($5000) CapitolOne($4500)
USBank($3000) AMEX($2000) BOA($2000) NRAVISA($4000)
ChaseVisa($500)
Established Contributor
Jlu
Posts: 785
Registered: ‎06-12-2012
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Re: Negative affects of adding an AU?

Ah I did not know about that feature! I just remember reading the thread where the wife filed for divorce and charged her lawyer fee to the husbands CC. LOL.

JP Morgan Select $10k | CSP $10k | Citi TY Premier $15k | BofA 3-2-1 $15k | Chase Freedom $10k | Discover IT $10k | Barclaycard $10k | AMEX SPG $5k | AMEX PRG NPSL | NASA Platinum-Advantage $10k | CapOne Quicksilver $3k | Walmart Card $5k | Amazon Card $10k | Chase Auto 1.49% | Joined myFICO 6/12 with a 540 FICO & today I'm over 750!
Established Contributor
cashnocredit
Posts: 1,025
Registered: ‎07-18-2009
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Re: Negative affects of adding an AU?


DVH1980 wrote:

Thanks for the reply, I assumed as much but thought I would ask. I wasnt worried about my credit or eport as much as I was about how Amex might veiw it by adding someone with a slew of derogs on their report.


Amex is rather unique in that they check an AU's (aka AC) credit. Amex has, primarily, a spend centric, pif, customer base that is exceptionally large and long. Most other AU issuers just issue a new card with the same account number. When the card is used they have no idea whether it was the AU or primary. Amex OTOH, knows. I think it is a certainty that IF there is a correlation between the account risk and the credit profile/spending of AUs that it will be factored into their decisions. It's also a certainty that if Amex does this they will not disclose it if they can avoid it.  If AU's spending becomes a large part of the overall spend and if the AU's cr's deteriorate it's increasingly likely AMex will do a FR or place a hard limit if not cancel outright.

What is clear is that it doesn't impact the primary card holder's CRA credit files in any way.

 

 

I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

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