So I am trying to figure out how it works when you make someone an authorized user on your CC? My husband has no credit (nothing bad just never had a CC), so he is having a very hard time trying to get a CC now. By making him an authorized user on some of my accounts, am I building any kind of credit for him? Or should I try and get a joint account with him? The only thing on his credit report, are 2 (joint) car loans, 1 paid in full, the other no missed payments, and a (joint) personal loan, also with no missed or late payments. Is there anything I can do to help build his credit?
We would like to purchase a house next year, and I am hoping to get his credit score up a bit before we apply for a mortgage. Any Suggestions??
Yes, an AU account will help your husband out as long as it is a positive account (no lates, etc.).
AU accounts appear on his reports depending on the card issuer, but most do report AU accounts. It will give him a credit score after a few months of reporting, but the accounts are labeled as Authorized User accounts on the reports, so some lenders exlude these when considering whether to issue credit.
My wife was in a similar situation as she is a foreign national. I have established great credit for her by making her an authorized user on a few cards and opening one card as a joint account. The joint account is important because it is actually a line of credit for which she legally has responsibility. Having her open a secured card or apply for a subprime card would have had the same effect, but I didn't want to do it that way.
I made him an AU on 2 of my accounts now, and we opened a joint AmEx card through USAA. Thanks for the feedback