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What are the benefits and any potential downsides from having a family member add me as an Authorized User on 1 or 2 credit cards?
if 2 cards could add 25k to 50k of available credit on my bureaus I assume that would be a good thing, as long as those cards are kept under 9% utilization?
would there be a difference if these were 2 newly opened cards for the family member versus an established card?
their fico is above 790
@Anonymous wrote:What are the benefits and any potential downsides from having a family member add me as an Authorized User on 1 or 2 credit cards?
if 2 cards could add 25k to 50k of available credit on my bureaus I assume that would be a good thing, as long as those cards are kept under 9% utilization?
would there be a difference if these were 2 newly opened cards for the family member versus an established card?
their fico is above 790
Benefits can be an increased credit score and offer padding for utilization as you suggest. Downside can be if their utilization skyrockets or they have late payments. Both would affect your scores negatively at least for a short while. You can a,ways remove yourself as an AU and get the accounts deleted from your reports if they turn into a negative.
My general rules on being added as an authorized user:
1) Do you absolutely trust them to make every payment on time and not run up utilization? If no, don't do it.
2) Will you be taking a hit on AAoA? You mentioned that they were new. If they're newer than your AAoA, then proceed to rule #3. If they're much newer than your AAoA, don't do it.
3) Do you have a direct need such as bringing down your utilization or increasing your AAoA? If not, don't do it.
One of the false myths in credit is that you must have more to get more. Someone can get exceptional credit by having three cards, two of which report zero balances and one that reports a small balance, plus an installment loan with preferably under 39% of the balance remaining to be paid. As long as you keep the negatives off your credit, those four accounts are enough to age and build your credit score nicely.
Being added as an authorized user should 1) Raise your AAoA, or 2) Bring your utilization in line, or both. If not, it's a good rule to never take the risk. The benefits can be minimal or even nil while risking actual damage by putting your credit destiny in someone else's hands for a time.