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New Contributor
Posts: 59
Registered: ‎10-11-2014
0

Added Friend as AU

I have a friend who's in a really bad place financially. She is not very responsible with money or credit. She has lots of medical collections and credit card charges that she doesn't intend to pay back. Not possible for her to get any sort of credit card at all.

I added her as an authorized user on my Capital One credit card. It is a card that I have SD'd so she is the only one spending on that account. We have an agreement where she pays me "X" amount of money upfront and whatever that number is, is how much she can spend for the month.

I just got the card in the mail today and she picked it up from me and she gave me $200. So she can spend up to $200 and then has to pay me again.

Also, I have her card frozen (easy click of the button on Cap1 Wallet) and she has to let me know when she needs it, so I can unfreeze it in order for her to do a transaction. Once her transaction is complete, i would freeze the card again. If she can't get in touch with me at the moment she needs to use the card, she's out of luck.

Basically, I'm trying to help out in the event that she needs a card for any reason. And since she's paying me upfront, it's almost like giving her a secured credit card. When she spends her limit of $200, I wouldn't unfreeze the card for any reason until she "adds" more upfront money.

Do you guys think this is crazy of me to do? She can't burn me too bad, right?

Valued Contributor
Posts: 1,667
Registered: ‎08-25-2016

Re: Added Friend as AU

In my opinion it's a VERY bad idea to give someone who's irresponsible with money and credit a card that's in your name. As for burning you, when you unfreeze the card what is keeping her ftom charging above the $200? And multiple times. If you want to help her, add her to a card YOU use but do not give her a card.
Regular Contributor
Posts: 104
Registered: ‎06-01-2015
0

Re: Added Friend as AU

Like rmduhon said, there is nothing preventing the friend from spending above 200. You say she in not responsible with money and credit and you give her the card? Are your mental faculties in order? You've been a member for sometime, so i assume you have some credit knowledge. Why dont you educate your friend?

Valued Member
Posts: 30
Registered: ‎07-27-2015

Re: Added Friend as AU

This will end bad. I guarantee it.

If she swipes an amount that can't be covered, Cap1 or any other lenders will not be interested in your sob story.

There is NO compassion in credit. If there was, it would cost more than it already does.
Regular Contributor
Posts: 247
Registered: ‎05-12-2008

Re: Added Friend as AU

I have to agree with the concensus. You're the only one who has a downside in this deal.

If she can give you $200 up front, she can just pay cash. If her credit is that bad, being an AU isn't going to help much, if at all.

 

Also, I can see her becoming resentful about the arrangement.


FICO 08:Jan 18, 2017: EX 800 EQ 725 TU 799
FICO 08:Feb 10, 2017: EX 788 EQ 772 TU 791 (post New Year's app spree)
In the garden as of 1/4/2017. Will remain for all of 2017.
Contributor
Posts: 124
Registered: ‎10-03-2016
0

Re: Added Friend as AU

[ Edited ]

Might try just getting her a secured card, there is one on these boards (OpenSky) that doesnt do a credit check before they issue a secured card. This will help her to become more financially responsible and actually help her credit. With her being on your account I can see how you could easily be guilted into allowing her to over spend because its an emergency. Just my two cents.


Start: May 2016 EX 424 (Lawyer) Current: December 2016 TU 641 (Discover Card)
My Timeline: http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/My-Story/td-p/4784950
Last Hard Pull: October 2016 (Discover Card)
$400 Credit One 8/2016 Balance $0 {|} $200 Discover (Secure) 10/2016 Balance $0
Regular Contributor
Posts: 247
Registered: ‎05-12-2008

Re: Added Friend as AU


RealNameNotAllowed wrote:

Might try just getting her a secured card, there is one on these boards (SkyBank or something) that doesnt do a credit check before they issue a secured card. This will help her to become more financially responsible and actually help her credit. With her being on your account I can see how you could easily be guilted into allowing her to over spend because its an emergency. Just my two cents.


OpenSky


FICO 08:Jan 18, 2017: EX 800 EQ 725 TU 799
FICO 08:Feb 10, 2017: EX 788 EQ 772 TU 791 (post New Year's app spree)
In the garden as of 1/4/2017. Will remain for all of 2017.
Contributor
Posts: 124
Registered: ‎10-03-2016
0

Re: Added Friend as AU

THanks I edited my post


Start: May 2016 EX 424 (Lawyer) Current: December 2016 TU 641 (Discover Card)
My Timeline: http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/My-Story/td-p/4784950
Last Hard Pull: October 2016 (Discover Card)
$400 Credit One 8/2016 Balance $0 {|} $200 Discover (Secure) 10/2016 Balance $0
Member
Posts: 13
Registered: ‎12-12-2016

Re: Added Friend as AU

u should give her an Amex instead bc u can set a monthly spend limit and set to 0 when she don't pay 😆
Valued Member
Posts: 30
Registered: ‎07-27-2015

Re: Added Friend as AU

[ Edited ]

She needs a secured card of her own. No AU stuff.

I'm really trying not to be mean spirited, but you are almost deserving to be burned if you make her an AU on anything.

It's no different than co-signing. Don't do it. Unless you are well funded enough to cover the monthly nut with zero issues to your own well being.

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