topic Re: AU question in General Credit Topics

AU question

Anonymous — Thu, 06 Apr 2017 17:23:48 GMT

I'm considering adding my daughter as an AU on one of my accounts so she can start building credit and learn to use credit responsibly. I started to add her to one of my AMEX charge accounts, but i'm not sure how that will report. Is it better to add her to a credit card or a charge card?

- Thanks for feedback!

Re: AU question

Kforce — Thu, 06 Apr 2017 18:05:50 GMT

Yes -- Add her as an AU ( Conditional On )

1 You have good credit.

2 The CC that you want to put her on reports to the Credit Bureaus.

Some banks do NOT report AUs to the credit bureaus

3 You keep the utility low on the card.

4 It has a few years of history. Tend to choose one of your older cards,

"Age of oldest account" is the primary benefit that an AU card gives a young person"

5 You keep/control of the spend/payments on the AU-Card. (Protect your scores),

Many do not give the card to there daughter or son. They don't even know that they have one.

It is just there to help get them started.

Others give them the card and use it as a teaching tool and keep a good eye on use and payments.

6 Amex is rumored to reset the age of account to new for an AU (no first hand experience)

7. Banks and CU's all have different minimum age requirements for adding an AU or giving out a secured CC

The average age from responses on previous post are about 15.5-16 for AU and minimum of 18 for secured CC.

I started helping my daughter when she wad 16. now 19.

Added as AU on 2 of my Credit Union -CC's (3-years ago),

At 17 she got a secured CC, and she now has a 790 Fico.

It does speed things up, and give history for when they need it later.

Re: AU question

Anonymous — Thu, 06 Apr 2017 18:04:48 GMT

Thanks Kforce. i'm just not clear on how a charge card reports an AU versus a credit card. Trying to figure out which would benefit her the most.

Re: AU question

Kforce — Thu, 06 Apr 2017 18:09:48 GMT

@Anonymous wrote:
Thanks Kforce. i'm just not clear on how a charge card reports an AU versus a credit card. Trying to figure out which would benefit her the most.

I have no answer for this, I am looking for others to respond.

If I was to answer incorrect we could get responses quicker !!

Re: AU question

Anonymous — Thu, 06 Apr 2017 19:56:21 GMT

ha! true

Re: AU question

RobertEG — Thu, 06 Apr 2017 23:33:12 GMT

If the reason for adding is to teach her how scoring works, add her to a credit card.

She will then be able to track how conventional % util of a real credit limit works.