topic Re: Impact of adding someone as an Authorized User in General Credit Topics

Impact of adding someone as an Authorized User

Trudy — Mon, 22 Jun 2020 19:20:55 GMT

I know there's been a lot of discussion regarding AU accounts which I have not paid much if any attention to because it never applied to me. However, I am thinking about adding someone to a card to aid in their recovery. I don't plan on providing them a card to use, just adding so they can benefit from it.

Is there any negative impact to me if they do not have a card or use the account? Also, I suppose as the card holder I could remove at any time without any action needed by the AU?

Re: Impact of adding someone as an Authorized User

K-in-Boston — Mon, 22 Jun 2020 20:54:05 GMT

Usually the discussion is on how it impacts the authorized user rather than the primary cardholder. Depending on the lender, they may be able to call and request a replacement card since theirs is "lost" and have it sent to an address that is not your own - remember that YOU are solely responsible for any and all charges that an AU may make with or without your permission. Yes, you can remove an authorized user at any point, although with most lenders that will actually require a phone call; usually much easier to add one.

Re: Impact of adding someone as an Authorized User

Trudy — Mon, 22 Jun 2020 22:53:50 GMT

Thanks. You're right, when searching I was unable to locate anything about the primary card holder. I'm still tossing it around and your response helps me understand more. If I'm able to see that a card has been issued through reviewing my online account than I'll feel confident moving forward.

Re: Impact of adding someone as an Authorized User

chuckwood — Tue, 23 Jun 2020 02:16:04 GMT

I know with some you have the option to just turn the card off once you add them.

Re: Impact of adding someone as an Authorized User

FlaDude — Tue, 23 Jun 2020 14:30:44 GMT

I have my wife and daugther as AUs on some of my cards. As far as I can tell it has no affect on my scores.

Re: Impact of adding someone as an Authorized User

Gmood1 — Tue, 23 Jun 2020 15:04:40 GMT

@Trudy

The AU cards if issued are always sent to the primary user's home address.

Capital One and Navy Federal give the option of no CC being issued at all. I'm sure there are others that give this option as well. I can't remember the others at the moment.

Re: Impact of adding someone as an Authorized User

Trudy — Tue, 23 Jun 2020 20:47:38 GMT

This is helpful. Thank you all.

Re: Impact of adding someone as an Authorized User

Kforce — Tue, 23 Jun 2020 21:48:18 GMT

More things to consider !

1) When you add an AU with some issuers they only require a name, however if the person you are adding is not living with you they might or might not get linked for reporting.

2) Some require full SSN, Address & Name to add an AU. (Sure to be linked but AU needs to give you his/her social)

3) Some issuers report AU account as new so they don't get age from card. (AMEX)

Re: Impact of adding someone as an Authorized User

Anonymous — Wed, 24 Jun 2020 01:07:26 GMT

@Kforce wrote:
More things to consider !
1) When you add an AU with some issuers they only require a name, however if the person you are adding is not living with you they might or might not get linked for reporting.

Very true. I was added to my sister's card and it never reported.

Re: Impact of adding someone as an Authorized User

Wavester64 — Wed, 24 Jun 2020 21:45:38 GMT

@Gmood1 wrote:
@Trudy
The AU cards if issued are always sent to the primary user's home address.
Capital One and Navy Federal give the option of no CC being issued at all. I'm sure there are others that give this option as well. I can't remember the others at the moment.

I always wondered what the impact is if you are an AU with better credit than the card holder?

For example, we'll be into the 2030s before I will be 5/24 to get a CHASE card Let's say DW is 2/24 and can get a CHASE card, and puts me down as an AU. For the sake of this hypothetical story, lets say I monitor the account 100%. However her credit is not as good as mine and she lets her other cards tank (not the CHASE since she doesn't use that one) does my credit get affected?

Re: Impact of adding someone as an Authorized User

dragontears — Wed, 24 Jun 2020 21:52:38 GMT

@Wavester64 wrote:
@Gmood1 wrote:
@Trudy
The AU cards if issued are always sent to the primary user's home address.
Capital One and Navy Federal give the option of no CC being issued at all. I'm sure there are others that give this option as well. I can't remember the others at the moment.
I always wondered what the impact is if you are an AU with better credit than the card holder?
For example, we'll be into the 2030s before I will be 5/24 to get a CHASE card Let's say DW is 2/24 and can get a CHASE card, and puts me down as an AU. For the sake of this hypothetical story, lets say I monitor the account 100%. However her credit is not as good as mine and she lets her other cards tank (not the CHASE since she doesn't use that one) does my credit get affected?

Only the account that shows on your reports affect your credit score.

Given your hypothetical scenario, assuming chase didn't take AA on the account (in reality they most likely would take AA if she "let's her other cards tank") you would be unaffected.

Re: Impact of adding someone as an Authorized User

BmoreBull — Thu, 25 Jun 2020 16:09:45 GMT

@Kforce wrote:

3) Some issuers report AU account as new so they don't get age from card. (AMEX)

^^^This. I had my mother add me to her Amex. She doesn't use the card at all. Has had the card for four years with perfect history and never even asked for a cli from the initial cl. I thought I was going to gain her four years of history. When I found out it would report as a brand new account for me, I called them and had myself removed. The card never reported and I hope they don't since I cancelled it before it could.

Re: Impact of adding someone as an Authorized User

Anonymous — Thu, 25 Jun 2020 19:10:21 GMT

@dragontears wrote:
@Wavester64 wrote:
@Gmood1 wrote:
@Trudy
The AU cards if issued are always sent to the primary user's home address.
Capital One and Navy Federal give the option of no CC being issued at all. I'm sure there are others that give this option as well. I can't remember the others at the moment.
I always wondered what the impact is if you are an AU with better credit than the card holder?
For example, we'll be into the 2030s before I will be 5/24 to get a CHASE card Let's say DW is 2/24 and can get a CHASE card, and puts me down as an AU. For the sake of this hypothetical story, lets say I monitor the account 100%. However her credit is not as good as mine and she lets her other cards tank (not the CHASE since she doesn't use that one) does my credit get affected?
Only the account that shows on your reports affect your credit score.
Given your hypothetical scenario, assuming chase didn't take AA on the account (in reality they most likely would take AA if she "let's her other cards tank") you would be unaffected.

^^^^^^^^^ This!

Re: Impact of adding someone as an Authorized User

Wavester64 — Thu, 25 Jun 2020 20:34:34 GMT

@dragontears wrote:
@Wavester64 wrote:
@Gmood1 wrote:
@Trudy
The AU cards if issued are always sent to the primary user's home address.
Capital One and Navy Federal give the option of no CC being issued at all. I'm sure there are others that give this option as well. I can't remember the others at the moment.
I always wondered what the impact is if you are an AU with better credit than the card holder?
For example, we'll be into the 2030s before I will be 5/24 to get a CHASE card Let's say DW is 2/24 and can get a CHASE card, and puts me down as an AU. For the sake of this hypothetical story, lets say I monitor the account 100%. However her credit is not as good as mine and she lets her other cards tank (not the CHASE since she doesn't use that one) does my credit get affected?
Only the account that shows on your reports affect your credit score.
Given your hypothetical scenario, assuming chase didn't take AA on the account (in reality they most likely would take AA if she "let's her other cards tank") you would be unaffected.

Thanks @dragontears