Helping Adult Children Rebuild Credit - Possible?

[dmwilson316]

My eldest is in his mid 30's. About 2 years ago he and his wife separated for a year, which dramatically impacted his scores (presuming her's too). In recent days he's asked us (parents) about adding him to some of our credit accounts (credit cards, mortgage, etc.) stating our positive history, and ongoing positive activities, will have a positive impact on his credit scores helping them to improve... and quicker than rebuilding activities on his own. 

I checked with one of our CC providers and the CSR stated activity on the account would be reported to all 3 bureaus. However, they only ask for a name, birthdate, and relationship to the primary card holder to add the authorized user. I can also provide a different mailing address, which would be his home address, if you want the card delivered somewhere other than the primary address on file (ours). The CSR also stated he would not be legally responsible for the financial balance. They do not ask for the SS# of the authorized user.

Questions - is this enough info when adding an authorized user to a CC account for the account's activity to be reported and tied to the authorized CC user (our son) and his credit bureau accounts? Is this even a ligitiment action? Does it provide the implied benefits? Or is this a public falicy (urban ledgend)? Are there any concerns or potential negative impacts we should be aware of when deciding to take this action? 

Additional mortgage related questions - would adding our son to our mortgage also benefit his credit scores? If so, would the benefit improve his scores quicker compared to just his own rebuilding actions? Presume adding someone to a mortgage would require a refi... is this correct? 

Thanks to everyone for your time to read and providing your knowledgable feedback!

dmwilson316

[JGGM]

I could be wrong, but I don't think you can just "add" someone to an existing mortgage.

[rmduhon]

Adding your son as an AU will work and his reports can be 'found' without his ssn. Refinancing a mortgage to add him is not a good idea because quote often they base the interest rate on the lowest credit score so you'll pay more. If you are wanting to add an instalment loan to his credit mix you can cosign a small loan for him if necessary.

[geekmama]

If you want to help him you don't need to send him a card. Have the card sent to your house. He doesn't need to use the card, just having his name on the account will help his score as long as the account has low utilization. That way you don't have to worry about him running up the card.

[dmwilson316]

Thank you, JGGM!

[dmwilson316]

Dear rmduhon,

Thanks for your insight. Glad to know adding him as an AU to one of our credit accounts will report to his Credit Bureau files. We were not too keen on the ideal of adding him to the mortgage but willing if positive benefits to him but we cannot have a negative impact to us. Knowing his 'low scores' could impact the interest rate is valuable info!

Regards

[dmwilson316]

Thanks, geekmama! Giving his address to receive the AU card is optional... default shipping for the card is the primary address on the account, which is our address. However, I'm thinking the CC provider will need his home address to ensure they 'find him' with the Credit Bureau's to ensure he receives the benefit of adding him to the account. Other than his name the only ask for his birth date and I'm not sure only two points of personal identifiable info is enough to make this happen.

Do you know if two points of PII is adequate for reporting? Or is the third PII point (his address) needed to make this happen? Thanks for your feedback!

[geekmama]

I'm not sure I would also check that the credit card reports AU. Some do, and some don't. Where I've added my husband or vice versa, I believe we had to give social security number.

[rmduhon]

An after a isn't necessary. I added my nephew as an AU to a couple of my cards to start his credit. They never asked for his address but it's still reporting. As was mentioned, depending on the card, it might not report, or it might not report to all 3. Which card were you thinking about adding him to?

[dmwilson316]

Thanks! I'll check with the CC provider.