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Question About Adding Authorized User

Established Member

Question About Adding Authorized User

Hey everyone, I tried to do some research on this topic, but most articles seem to discuss the dangers of the AU running up dept, which inevitably hurts you (the person who is responsible to pay that off). Assuming that the AU I would add is going to be responsible (not spend like crazy), are there any negative impacts to my credit score or credit report that could result from adding an AU with no credit history or an AU with a bad credit history? Also, it would presumably help the AU's credit...is this correct?

 

As always, thanks for any help/input!

Message 1 of 5
4 REPLIES
Moderator Emeritus

Re: Question About Adding Authorized User

 


burgh wrote:

Hey everyone, I tried to do some research on this topic, but most articles seem to discuss the dangers of the AU running up dept, which inevitably hurts you (the person who is responsible to pay that off). Assuming that the AU I would add is going to be responsible (not spend like crazy), are there any negative impacts to my credit score or credit report that could result from adding an AU with no credit history or an AU with a bad credit history? Also, it would presumably help the AU's credit...is this correct?

 

As always, thanks for any help/input!


 

You are correct that the only way an AU could hurt your credit it to abuse the privilege of having the card. That's why I never gave my sons the cards I added them to as AU's.

 

Adding someone to one of your accounts as an AU can help them IF the account is older than any of theirs, IF the payment history is long and clean, IF the utilization is very low, and IF it will report to the CRA's. Not all cards will do this. You need to ask the company first. They will inherit the entire history of this account. One caveat however; if this account starts to go south your credit will be affected as well. Keep that in mind.

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work


Message 2 of 5
Senior Contributor

Re: Question About Adding Authorized User

No there is neg impact on your CS or CR's by adding an AU.

 

For the AU to benifit ...1st you need to find out whether the Card issuer will allow AU's and will they report to the CRA's.

 

For the CC to be helpful to the AU, the needs to be older then the AU's AAoA (average age of accounts) the older the better.

Also reporting in a positive way...no late payments..at least no lates in the 5years or more. 

And a good healthy available credit limit.

 

Be safe and keep an eye on the monthly statements.Smiley Wink

 

Edit to add...Wow marinevietvet....I guess great minds think alike....we were both typing at the same time LOL.

FICO's May 2015 EQ764 ~~Live below your means and always keep an emergency fund -Love Everybody ~ Big Kenny ~ Big and Rich ~~~~~Credit Scoring 101 - Common Abbreviations - Freq Req Threads - Free Credit Reports - What Steps Do I Take?DV? PFD?
Message 3 of 5
Established Contributor

Re: Question About Adding Authorized User

FWIW -- Amex allows you to set a spending limit for each AU card, so you could -- for example -- hand a Centurion card to your college kid with a spending limit of $200. If they abused that, you could then freeze the card, or if they got in a bind -- and you approved of the spending -- you could increase the spending limit to any amount you want.

Message 4 of 5
Established Contributor

Re: Question About Adding Authorized User

If you're not going to feel comfortable adding an AU account, then dont. it's your account, your responsibility, your call.

Message 5 of 5