topic Re: Unintended consequences of adding an authorized user? in General Credit Topics

Unintended consequences of adding an authorized user?

TyrannicalDuncery — Tue, 27 Jun 2023 04:05:43 GMT

I'm thinking of adding someone I trust as an authorized user on one of my cards (if it's okay with them, of course). I'm trying to think through what all the downsides could be.

Here's what I can think of. Are these correct, and are there any others that I haven't considered?

My authorized user's credit could get hurt if adding my card hurts their age/mix or if I miss payments.
My authorized user could spend too much.
My authorized user could mishandle the card and get it frozen or stolen or something.
Unknown weird proprietary bank analytics

Re: Unintended consequences of adding an authorized user?

Brian_Earl_Spilner — Tue, 27 Jun 2023 04:17:41 GMT

1. Use a lender they'll have no problem removing later.

2. Don't actually give them the card.

3. Don't actually give them the card.

4. What weird analytics would affect your card on your profile, especially if you don't actually give them the card?

Re: Unintended consequences of adding an authorized user?

Anonymous — Tue, 27 Jun 2023 04:39:34 GMT

@Brian_Earl_Spilner wrote:
1. Use a lender they'll have no problem removing later.
2. Don't actually give them the card.
3. Don't actually give them the card.
4. What weird analytics would affect your card on your profile, especially if you don't actually give them the card?

2 and 3: it depends on the goal! If, and OP trusts this person, the idea is to give them some credit they can use in an emergency etc, not giving the card defeats the purpose. In this situation, something like an Amex where you can put limits on an AU spend

Re: Unintended consequences of adding an authorized user?

TyrannicalDuncery — Tue, 27 Jun 2023 05:15:31 GMT

Thanks @Brian_Earl_Spilner , great points. When I say weird analytics, I mean like maybe my card issuer offers some other product that I want like maybe some kind of bank account, and they have some impossible-to-understand algorithm where if I've recently added a prime number of authorized users and my IP address is west of the Mississippi I get send to the bad branch of the algorithm or some garbage. lol

But seriously, I think they have a lot of freedom as long as they steer clear of certain things, right?

Re: Unintended consequences of adding an authorized user?

TyrannicalDuncery — Tue, 27 Jun 2023 05:12:50 GMT

@Anonymousahhh, good point about capping the spending potentially.

Re: Unintended consequences of adding an authorized user?

SouthJamaica — Tue, 27 Jun 2023 12:04:52 GMT

@TyrannicalDuncery wrote:
I'm thinking of adding someone I trust as an authorized user on one of my cards (if it's okay with them, of course). I'm trying to think through what all the downsides could be.

Here's what I can think of. Are these correct, and are there any others that I haven't considered?
My authorized user's credit could get hurt if adding my card hurts their age/mix or if I miss payments.
My authorized user could spend too much.
My authorized user could mishandle the card and get it frozen or stolen or something.
Unknown weird proprietary bank analytics

Did you know there's a separate all zero penalty for authorized users? I can't even wrap my head around how it works, but I once tested it and found that it was a real thing, causing the AU to experience a significant point loss for no good reason. I think that counts as a weird analytic.

Re: Unintended consequences of adding an authorized user?

GApeachy — Tue, 27 Jun 2023 12:13:42 GMT

@TyrannicalDuncery wrote:
where if I've recently added a prime number of authorized users and my IP address is west of the Mississippi I get send to the bad branch of the algorithm or some garbage. lol

But seriously, I think they have a lot of freedom as long as they steer clear of certain things, right?

Reading this brought to mind this weird "thing" that happened.

Re: Unintended consequences of adding an authorized user?

Brian_Earl_Spilner — Tue, 27 Jun 2023 13:05:54 GMT

@Anonymous wrote:
@Brian_Earl_Spilner wrote:
1. Use a lender they'll have no problem removing later.
2. Don't actually give them the card.
3. Don't actually give them the card.
4. What weird analytics would affect your card on your profile, especially if you don't actually give them the card?
2 and 3: it depends on the goal! If, and OP trusts this person, the idea is to give them some credit they can use in an emergency etc, not giving the card defeats the purpose. In this situation, something like an Amex where you can put limits on an AU spend

True, except op doesn't trust them, because there shouldn't be questions about their spending patterns and possible mishandling of the account if they did.

Re: Unintended consequences of adding an authorized user?

TyrannicalDuncery — Tue, 27 Jun 2023 23:49:25 GMT

@SouthJamaica wrote:
@TyrannicalDuncery wrote:
I'm thinking of adding someone I trust as an authorized user on one of my cards (if it's okay with them, of course). I'm trying to think through what all the downsides could be.

Here's what I can think of. Are these correct, and are there any others that I haven't considered?
My authorized user's credit could get hurt if adding my card hurts their age/mix or if I miss payments.
My authorized user could spend too much.
My authorized user could mishandle the card and get it frozen or stolen or something.
Unknown weird proprietary bank analytics
Did you know there's a separate all zero penalty for authorized users? I can't even wrap my head around how it works, but I once tested it and found that it was a real thing, causing the AU to experience a significant point loss for no good reason. I think that counts as a weird analytic.

Wooooow, that is indeed analytics and very weird, 2/2. Thanks!

Do you mean that like, there is a penalty to my AU if all of the cards for which they are an AU are paid off?

Re: Unintended consequences of adding an authorized user?

TyrannicalDuncery — Tue, 27 Jun 2023 23:47:19 GMT

@GApeachy Scary campfire stories: FicoForums edition.

Re: Unintended consequences of adding an authorized user?

GApeachy — Tue, 27 Jun 2023 23:54:06 GMT

My fav @TyrannicalDuncery

but I liked the twists & turns on last two pages.

Re: Unintended consequences of adding an authorized user?

TyrannicalDuncery — Wed, 28 Jun 2023 00:01:34 GMT

@GApeachyOoh I gotta check that out.

Re: Unintended consequences of adding an authorized user?

butterpecan — Wed, 28 Jun 2023 01:36:52 GMT

@SouthJamaica wrote:
@TyrannicalDuncery wrote:
I'm thinking of adding someone I trust as an authorized user on one of my cards (if it's okay with them, of course). I'm trying to think through what all the downsides could be.

Here's what I can think of. Are these correct, and are there any others that I haven't considered?
My authorized user's credit could get hurt if adding my card hurts their age/mix or if I miss payments.
My authorized user could spend too much.
My authorized user could mishandle the card and get it frozen or stolen or something.
Unknown weird proprietary bank analytics
Did you know there's a separate all zero penalty for authorized users? I can't even wrap my head around how it works, but I once tested it and found that it was a real thing, causing the AU to experience a significant point loss for no good reason. I think that counts as a weird analytic.

@SouthJamaica

Hi SouthJamaica, what happens? I'm trying to understand who it affects. The AU or the Owner?

Re: Unintended consequences of adding an authorized user?

SouthJamaica — Wed, 28 Jun 2023 03:47:19 GMT

@butterpecan wrote:
@SouthJamaica wrote:
@TyrannicalDuncery wrote:
I'm thinking of adding someone I trust as an authorized user on one of my cards (if it's okay with them, of course). I'm trying to think through what all the downsides could be.

Here's what I can think of. Are these correct, and are there any others that I haven't considered?
My authorized user's credit could get hurt if adding my card hurts their age/mix or if I miss payments.
My authorized user could spend too much.
My authorized user could mishandle the card and get it frozen or stolen or something.
Unknown weird proprietary bank analytics
Did you know there's a separate all zero penalty for authorized users? I can't even wrap my head around how it works, but I once tested it and found that it was a real thing, causing the AU to experience a significant point loss for no good reason. I think that counts as a weird analytic.
@SouthJamaica
Hi SouthJamaica, what happens? I'm trying to understand who it affects. The AU or the Owner?

Like I said I can't wrap my head around how it works. But my recollection is that my AU got shellacked when I reported a zero balance on her card. Perhaps another forum member can give you the answer.

Re: Unintended consequences of adding an authorized user?

butterpecan — Wed, 28 Jun 2023 03:52:16 GMT

@SouthJamaica I see, well that tells me more than I know to start with. Thank you and you are right, it sounds tricky.

Re: Unintended consequences of adding an authorized user?

SouthJamaica — Fri, 07 Mar 2025 16:39:18 GMT

@TyrannicalDuncery wrote:
@SouthJamaica wrote:
@TyrannicalDuncery wrote:
I'm thinking of adding someone I trust as an authorized user on one of my cards (if it's okay with them, of course). I'm trying to think through what all the downsides could be.

Here's what I can think of. Are these correct, and are there any others that I haven't considered?
My authorized user's credit could get hurt if adding my card hurts their age/mix or if I miss payments.
My authorized user could spend too much.
My authorized user could mishandle the card and get it frozen or stolen or something.
Unknown weird proprietary bank analytics
Did you know there's a separate all zero penalty for authorized users? I can't even wrap my head around how it works, but I once tested it and found that it was a real thing, causing the AU to experience a significant point loss for no good reason. I think that counts as a weird analytic.

Wooooow, that is indeed analytics and very weird, 2/2. Thanks!

Do you mean that like, there is a penalty to my AU if all of the cards for which they are an AU are paid off?

If you are an AU, and all the cards on which you are an AU report at zero, you receive a second all zero penalty just for that.

Re: Unintended consequences of adding an authorized user?

SouthJamaica — Fri, 07 Mar 2025 16:39:53 GMT

@butterpecan wrote:
@SouthJamaica wrote:
@TyrannicalDuncery wrote:
I'm thinking of adding someone I trust as an authorized user on one of my cards (if it's okay with them, of course). I'm trying to think through what all the downsides could be.

Here's what I can think of. Are these correct, and are there any others that I haven't considered?
My authorized user's credit could get hurt if adding my card hurts their age/mix or if I miss payments.
My authorized user could spend too much.
My authorized user could mishandle the card and get it frozen or stolen or something.
Unknown weird proprietary bank analytics
Did you know there's a separate all zero penalty for authorized users? I can't even wrap my head around how it works, but I once tested it and found that it was a real thing, causing the AU to experience a significant point loss for no good reason. I think that counts as a weird analytic.
@SouthJamaica
Hi SouthJamaica, what happens? I'm trying to understand who it affects. The AU or the Owner?

The AU.