topic AU AmEx Question in Credit Cards

AU AmEx Question

TheClub — Mon, 16 Sep 2013 01:49:48 GMT

Hey,

I plan on adding my younger brother and sister who are both in college as authorized users on my AmEx account. The balance is always PIF before the statement post every month & reflects as $0 on my CR. The reason for this is to help them with building a credit profile and the possibility of backdating when their time comes.

If I request the cards for them but never actually give it to them to use, will this have an negative impact on their reports?

I think I know the answer to this question already but who better to ask then the myFICO forum.

Thanks in advance.

Re: AU AmEx Question

creditnocash — Mon, 16 Sep 2013 01:51:53 GMT

no it wont effect in a negative way.

as for history. if your just pif for them it really doesnt matter if they are not applying for anything.

cr dont have memory on when you leave a balance. if you pif before statement before they apply for something thats all they will see. maybe a high limit/high balance etc.

Re: AU AmEx Question

djc1puno — Mon, 16 Sep 2013 02:32:56 GMT

agree...it'll help them establish credit history and with amex to boot

Re: AU AmEx Question

Anonymous — Mon, 16 Sep 2013 10:33:26 GMT

Make sure to credit online accounts for the cards to help lock in the member dates

Re: AU AmEx Question

takeshi74 — Mon, 16 Sep 2013 12:28:54 GMT

@TheClub wrote:

If I request the cards for them but never actually give it to them to use, will this have an negative impact on their reports?

There's no causal relationship there. Negative impact would come from the usual causes: high utilization, late payments, etc. Usage per AU isn't reported to the CRA's. Further, lack of usage isn't factored in as a negative credit scoring factor in general. Otherwise people would get dinged for their sock drawer cards.