topic Re: Adding an Authorized User to Citi Costco in Credit Cards

Adding an Authorized User to Citi Costco

KLEXH25 — Mon, 11 Nov 2019 23:23:44 GMT

Hey all, I'm considering adding my fiance as an authorized user to my Citi Costco Visa. He doesn't need it for any credit reasons since he already has a long and thick file with scores in the 800's, but it would be convenient since we already split the costs for most of the purchases made on the Citi card. Plus, he tends to be the one to go to Costco (without me) since it's on his way home, so we are obviously missing out on some savings there.

So my question is, what are the pros and cons we need to consider before doing so? I understand that since I'm the primary, it's my responsibility to pay everything. Are there any negatives for him? Will it affect his account age? I got this card in June, but he got a Discover card in April so it's only a two month difference. Or does it start from the date he's added?

Re: Adding an Authorized User to Citi Costco

chiefone4u — Tue, 12 Nov 2019 00:12:51 GMT

The most apparent con for him is what the Utilization of the card might do to his overall utilization.

If he's got a long, thick, clean credit profile adding him as an authorized user will have minimal effect on his profile provided the bill is paid on time (everytime) and utilization is kept low.

Any lates the card may have had or has in the future will report on BOTH yours and his profile.

Him as an authorized user can dispute the card and have all history of it removed from his credit report... however if things go sideways (hopefully never happens) you are stuck with it for the long term.

Re: Adding an Authorized User to Citi Costco

imaximous — Tue, 12 Nov 2019 00:31:48 GMT

@KLEXH25 wrote:
Hey all, I'm considering adding my fiance as an authorized user to my Citi Costco Visa. He doesn't need it for any credit reasons since he already has a long and thick file with scores in the 800's, but it would be convenient since we already split the costs for most of the purchases made on the Citi card. Plus, he tends to be the one to go to Costco (without me) since it's on his way home, so we are obviously missing out on some savings there.

So my question is, what are the pros and cons we need to consider before doing so? I understand that since I'm the primary, it's my responsibility to pay everything. Are there any negatives for him? Will it affect his account age? I got this card in June, but he got a Discover card in April so it's only a two month difference. Or does it start from the date he's added?

As far as affecting AAoA, it really depends on the rest of his profile. If he has a long credit history and decent limits on other cards, it's not going to affect him much or at all.

Nice thing about Citi Costco is that he'll get a different card number, so in your case, it'll be easy to look at the statements and determine who bought what because it's clearly separated by user.

Then, another thing to consider is what other Visa cards he has already. Costco Visa isn't really the greatest in terms of earnings for purchases at Costco (except for certain promotional offerings). There are other Visa cards that offer a better return.

Re: Adding an Authorized User to Citi Costco

KLEXH25 — Tue, 12 Nov 2019 02:08:16 GMT

That’s great to know that purchases are itemized. Unfortunately none of his cards offer any rewards. I think he’s had his cards for 15-20 years (or more) and just keeps them for age. He got his Discover card in April because I was always talking about how much I loved mine, and now that’s his daily driver. But since he can’t use it at Costco for purchases (2%) or Costco gas (4%), he uses his debit card. I know the savings aren’t huge, but it’s better than 0%. Plus he can get 3% on dining. I want to put all the cash back we earn into our wedding fund.

I don’t carry balances or pay late, and I keep utilization low. I think it’ll help his overall utilization since it adds another $11k. He’s currently carrying a balance on his Discover, but the other 3 cards are paid off. He’s not one to actively research & apply for cards or seek credit limit increases, and a lot of what I learn I pass on to him, so his interest is passive at best.

Re: Adding an Authorized User to Citi Costco

imaximous — Tue, 12 Nov 2019 05:25:50 GMT

It seems like it'll be a great addition then. Maybe I made it sound like the Costco card isn't any good, but it is. It covers a bunch of categories with good returns: Gas, dining, travel and obviously Costco. I just meant that the rewards at Costco could be beaten by other cards, but for someone who's not into the rewards game, it's a very well-rounded card.

In addition, maybe see if those other cards with no rewards can be PCed to better cards. They don't have to go to waste unless it's not possible to covert them.

Re: Adding an Authorized User to Citi Costco

KLEXH25 — Fri, 15 Nov 2019 03:55:24 GMT

That’s a good point about PCing. I think we had discussed it a while back but he mentioned that the banks don’t have any other cards he’s interested in or don’t have PC options. I know one is a Barclays, one is a Capital One card through his Union, and another is from his credit union.

I brought up becoming an AU tonight and how it works and I think he’s interested. Just wondering about one thing. When he gets his card, will he also get a Citi login account and be able to access the account and statements, or is that just me as the primary? In other words, can he also make payments or just me?

Re: Adding an Authorized User to Citi Costco

Moneyklutz — Fri, 15 Nov 2019 03:54:17 GMT

He will be able to log in and make payments. I do it every month on my wife's Costco visa card. I've been an AU on her card for a couple of years now and it works great for us just like you're hoping it'll work for you.

Re: Adding an Authorized User to Citi Costco

KLEXH25 — Fri, 15 Nov 2019 03:55:52 GMT

Awesome!!! Thanks

Re: Adding an Authorized User to Citi Costco

Pap_32 — Fri, 15 Nov 2019 03:59:22 GMT

I dont have a citi card but i have cap 1 qs and have my DM and Sister as Au's and they cant make a account to login just me the primary holder.

Re: Adding an Authorized User to Citi Costco

Anonymous — Fri, 15 Nov 2019 11:37:50 GMT

@imaximous wrote:
Then, another thing to consider is what other Visa cards he has already. Costco Visa isn't really the greatest in terms of earnings for purchases at Costco (except for certain promotional offerings). There are other Visa cards that offer a better return.

Not to derail the conversation too much, but which Visa cards offer better than 2% at Costco? I don't spend a lot at Costco, but every little bit helps

Re: Adding an Authorized User to Citi Costco

imaximous — Fri, 15 Nov 2019 14:01:19 GMT

@Anonymous wrote:
@imaximous wrote:
Then, another thing to consider is what other Visa cards he has already. Costco Visa isn't really the greatest in terms of earnings for purchases at Costco (except for certain promotional offerings). There are other Visa cards that offer a better return.
Not to derail the conversation too much, but which Visa cards offer better than 2% at Costco? I don't spend a lot at Costco, but every little bit helps

Quite a few, but some are dependent on banking relationship or combination with premium cards, and obviously, your own goals for redemptions. From experience:

- USB Altitude Reserve: 3x using mobile pay, but effective 4.5x based on my redemptions. This is my main card at Costco.

- Chase FU: 1.5x but I have CSR, so at minimum, it's 2.25x if I redeem points for travel on the portal. But, I usually transfer to Hyatt and I can get at least 2cpp, if not much better, so basically 3x minimum by transferring points.

- Chase Freedom: Varies depending on categories, but they've had wholesale clubs and Chase Pay frequently. 5x during those quarters.

- Chase Ink Cash: You may need to go a little out of your way for this, but you can buy a few Visa cards at Staples during their no-fee sales. That's 5x with Ink Cash or 3x if you have Ink Preferred.

- BofA cards based on banking relationship: Premium Rewards up to 2.625x. If you got a Cash Rewards card before they switched to MC, it goes up to 3.5x at wholesale clubs. Again, BofA is based on relationship and assets.

I'm sure there are others, but that's based on cards I hold (or had). That's also assuming that you're purchasing in-store. If you shop at Costco online, then there's even more options because you can use Visa, MC & Discover on costco.com. But again, it all depends on your own goals for your points.

Re: Adding an Authorized User to Citi Costco

Anonymous — Sat, 16 Nov 2019 07:40:04 GMT

@KLEXH25 wrote:
That’s a good point about PCing. I think we had discussed it a while back but he mentioned that the banks don’t have any other cards he’s interested in or don’t have PC options. I know one is a Barclays, one is a Capital One card through his Union, and another is from his credit union.

I brought up becoming an AU tonight and how it works and I think he’s interested. Just wondering about one thing. When he gets his card, will he also get a Citi login account and be able to access the account and statements, or is that just me as the primary? In other words, can he also make payments or just me?

PC would be good but just be aware you cannot PC out of the Costco card. If you ever quit Costco the card is lost for good.

Re: Adding an Authorized User to Citi Costco

Anonymous — Sat, 16 Nov 2019 17:27:18 GMT

@imaximous wrote:
I'm sure there are others, but that's based on cards I hold (or had). That's also assuming that you're purchasing in-store. If you shop at Costco online, then there's even more options because you can use Visa, MC & Discover on costco.com. But again, it all depends on your own goals for your points.

Thanks for your help. I'm pretty much limited to cards without a banking relationship and annual fee. I only keep a few hundred in US banks. Chase Freedom would be an option, but I can't see myself ever getting below 5/24

My US Costco purchases amount to perrhaps $300 a year, so realistically we're looking at $3-9 no matter what.

Re: Adding an Authorized User to Citi Costco

eastsea — Sat, 16 Nov 2019 18:15:57 GMT

@Anonymous wrote:
@imaximous wrote:
I'm sure there are others, but that's based on cards I hold (or had). That's also assuming that you're purchasing in-store. If you shop at Costco online, then there's even more options because you can use Visa, MC & Discover on costco.com. But again, it all depends on your own goals for your points.

Thanks for your help. I'm pretty much limited to cards without a banking relationship and annual fee. I only keep a few hundred in US banks. Chase Freedom would be an option, but I can't see myself ever getting below 5/24

My US Costco purchases amount to perrhaps $300 a year, so realistically we're looking at $3-9 no matter what.

As far as I know no bank requires you to have a deposit relationship to give you a card though it helps in some cases. And I would imagine most people do not want to open bank accounts just to get credit cards.

Amex and Discover should be perfect for you but not sure of their acceptance rate in other countries.

If you only spend $300 a year in Costco, I would even say the membership is not worth it. Unless you get it for free somehow.