topic Re: Authorized Users in General Credit Topics

Authorized Users

devincottrell — Sat, 27 Apr 2024 00:59:37 GMT

Hey y'all, apologies in advanced if this has already been asked and answered.

So I have been an authorized user on a relatives credit card since I was 16, I turned 18 just recently on the 18th and was hoping for some type of credit score. But it has been almost a week now with no update, did I get it wrong that I would receive any type of credit score? I really wanted to open a Chase Sapphire Preferred card but I cannot do that with a credit score. I guess my question is should I start applying for starter credit cards or should I wait a bit longer to see an update in my score if any update?

Re: Authorized Users

keekers — Sat, 27 Apr 2024 02:18:34 GMT

A lot, if not most, credit card issuers disregard AU accounts and since you (presumably) don't have any of your own credit history I think it would likely be very difficult to be approved for the CSP for a couple reasons, one of which is that Chase likes to see at least 12 months of credit history before they will approve for any of their cards besides the Freedom Rise. Also, I could be wrong but I don't think you will get a score until you get some credit of your own (that's what happened with my son but it could have been timing).

Out of curiosity, why do you want the CSP right off the bat? That's typically not a card most folks just starting out target immediately.

My recommendation is to start with a secured card, OR if you want to get in with Chase apply for the Freedom Rise. Having $250 in a Chase checking or savings account will boost your odds of approval. Another step you can take is to open a secured loan if you have the ability and bank with an institution that offers them; that will help your credit mix and boost your score. You may not like this answer but good credit and high scores takes time and the best thing you can do is be patient, take the steps you can to build as you go and don't make dumb mistakes. Side note, stay away from the subprime cards just to get a card; it isn't worth it.

Re: Authorized Users

devincottrell — Sat, 27 Apr 2024 03:00:26 GMT

Is this the case with the AMEX gold card authorized users? If so how does being a authorized user at all help your credit once you turn 18 if at all? I looked up the same topic on this forum about authorized users and notice someone added their daughter to their credit card but still got a almost 800 credit score as soon as they turned 18.

As for wanting the CSP, kind of wanted a decent card with decent cash back rewards for gas and such. Plus the $750 travel credit for spending $4000 seems really enticing. Also I had a chase account already and would be nice to have my checking, savings and cc all in one.

And I have had the AMEX Gold Card for 2+ years at this point, which should be an ample amount of credit history for CSP unless that doesn't count since it's a authorized user card?

Re: Authorized Users

keekers — Sat, 27 Apr 2024 03:48:33 GMT

@devincottrell wrote:
Is this the case with the AMEX gold card authorized users? If so how does being a authorized user at all help your credit once you turn 18 if at all? I looked up the same topic on this forum about authorized users and notice someone added their daughter to their credit card but still got a almost 800 credit score as soon as they turned 18.

Maybe for the issuers that include AU accounts. Chase isn't one of them. My son started with a 780 credit score once he opened his secured card; he's been an AU on my cards for a couple years. However, that score doesn't mean much since he has virtually zero credit history of his own.

As for wanting the CSP, kind of wanted a decent card with decent cash back rewards for gas and such. Plus the $750 travel credit for spending $4000 seems really enticing. Also I had a chase account already and would be nice to have my checking, savings and cc all in one.

The CSP doesn't have a $750 travel credit; it's a $50 hotel credit. Perhaps you're thinking about the intro bonus offer? Also, the CSP doesn't have any elevated point multipliers for gas; have you looked at Chase's other card offerings to see what card best fits your spending patterns? Finally, are you aware it has a $95 annual fee? Regardless, I'm pretty sure it's out of reach for you right now. Since you already bank with Chase, I really think the Freedom Rise is a good start for you and I dare say likely an easy approval. Roll with that card for now and in 12 months you will be ready to "level up" to a better card.

And I have had the AMEX Gold Card for 2+ years at this point, which should be an ample amount of credit history for CSP unless that doesn't count since it's a authorized user card?

Chase strips out AU accounts in their credit decisions so no, it doesn't count.

See my comments above in red.

Re: Authorized Users

FicoMike0 — Sat, 27 Apr 2024 04:40:16 GMT

First, I'm not a chase guy, but you seem to like them.

Before going any further im sure I'm not alone here in suggesting you don't want to pay fees! Sometimes you have to, sometimes it's worth it, but try not to.

You don't mention whether you have an account at chase. If not, get over there and open a checking. I think they have a $300 sign up bonus. Again, go for one where you can get fees waived. I'd suggest going in person and just ask them which card they have for you, now that you are a client.

Local credit unions can be great too, just go in and ask what they can offer.

Re: Authorized Users

keekers — Sat, 27 Apr 2024 04:44:17 GMT

@FicoMike0 wrote:
First, I'm not a chase guy, but you seem to like them.
Before going any further im sure I'm not alone here in suggesting you don't want to pay fees! Sometimes you have to, sometimes it's worth it, but try not to.
You don't mention whether you have an account at chase. If not, get over there and open a checking. I think they have a $300 sign up bonus. Again, go for one where you can get fees waived. I'd suggest going in person and just ask them which card they have for you, now that you are a client.
Local credit unions can be great too, just go in and ask what they can offer.

OP stated he banks with Chase (checking and savings).

Re: Authorized Users

devincottrell — Sat, 27 Apr 2024 05:06:11 GMT

Oh okay so the credit history only counts when it's your credit card only and not a authorized user even if you did use it regularly?

Sorry that's my mistake, I meant the 60,000 bonus points you can get (or around $750 in travel according to chase's website). What I meant to say was streaming services and stuff. I was thinking of a completely different card that Citi offers for gas (Citi Anywhere Visa) which will probably be the 2nd card I'll get after the CSP whenever I am able to get that.

Also yes I am aware it does have a $95 annual fee, which is nothing really compared to some other cards out there.

So I could qualify for "higher end" cards other than chase if that's correct? So if I wanted to, I could probably get the AMEX gold card myself if I decided to?

And the freedom rise definitely seems like a decent option, what would be the best way to utilize this card to gain the most and help my credit? (I've heard things like credit utilization rate etc and want to make sure that's accurate)

Re: Authorized Users

FicoMike0 — Sat, 27 Apr 2024 05:18:05 GMT

I looked and I agree with keekers, freedom rise looks good. Still, can't hurt to ask them. Of course there are other banks. If you want a fun bank try,

https://redneck.bank/

At least they can take a joke.

Re: Authorized Users

FicoMike0 — Sat, 27 Apr 2024 05:29:55 GMT

@keekers sorry, I wasn't paying attention.

@devincottrell What did I tell you about fees? No you don't want to pay $250 for a card! It's not even a credit card. At least at 18 I wouldn't have used $250 worth of gold card benes, maybe you can. If you want a travel card, I just got a usbank connect visa and they're paying me $500 to take it. Don't pay them, get them to pay you. I like the blue cash everyday, it says amex, but has no fee.

You're in the right place to get a lot of advice, hopefully, some of it good.

Re: Authorized Users

devincottrell — Sat, 27 Apr 2024 05:35:45 GMT

Haha no no no, I am NOT going to be paying $250 for the AMEX card right now. I was simply asking to see if that was a option for me. Granted I receive any sort of credit score from being an authorized user 🫤

Re: Authorized Users

keekers — Sat, 27 Apr 2024 06:42:12 GMT

@devincottrell wrote:
And the freedom rise definitely seems like a decent option, what would be the best way to utilize this card to gain the most and help my credit? (I've heard things like credit utilization rate etc and want to make sure that's accurate)

To be clear, I suggested the Freedom Rise since you said you bank with Chase and wanted to keep everything in one spot (that also increases your approval odds). For Chase that's the perfect gateway card for beginners; with responsible use it will open the door for you to get other Chase cards down the road (like the CSP) as well as cards with other issuers. The bottom line is that with where you are at in your credit journey (the very beginning) you likely won't get approved for any "advanced" cards right now (with Chase or anyone else). The best thing you can do is get started with a "beginner" card to establish some credit history... use it for your regular spend, pay off your balances each month and ensure that you keep your reporting utilization under 10% (you will get some varying opinions on that but I've found that to be the sweet spot for me). As you use the card and show you can handle it Chase will likely grant you CLIs, potentially as soon as a few months after card opening. This will make managing your utilization easier and also continue to build your file. I know you're excited to get into the credit game but you have to remember that it's a marathon and not a sprint, no matter how fast you want to move. Stay patient and make good decisions and it will pay off.

This place is a wealth of knowlege with folks happy to help along the journey; I wish I had this resource when I was 18.

Re: Authorized Users

keekers — Sat, 27 Apr 2024 15:26:05 GMT

One clarifying point about the reporting utilization thing...to get the best score you actually want a small statement balance to report on your statement (statement date); just be sure to pay it in full by the due date. I used under 10% as the threshold, which means under 10% of the card's credit limit. So, for example, if the card has a $1000 limit then the statement balance should be under $100. If you have a lower limit ( $500, for example) you can cycle your limit if needed by making payments during the month to free up more credit; just make sure that the balance that reports on your statement is under 10% ($50).

Re: Authorized Users

devincottrell — Sat, 27 Apr 2024 15:36:18 GMT

Got it, thanks. I applied for the Freedom Rise just this morning and was approved at a $2500 for it. So I understand spending less than 10% of that but should you be trying to spend that amount every statement or will it really matter if you spend $40 on one statement and $230 on the next?

Re: Authorized Users

SouthJamaica — Sat, 27 Apr 2024 15:50:21 GMT

@devincottrell wrote:
Hey y'all, apologies in advanced if this has already been asked and answered.

So I have been an authorized user on a relatives credit card since I was 16, I turned 18 just recently on the 18th and was hoping for some type of credit score. But it has been almost a week now with no update, did I get it wrong that I would receive any type of credit score? I really wanted to open a Chase Sapphire Preferred card but I cannot do that with a credit score. I guess my question is should I start applying for starter credit cards or should I wait a bit longer to see an update in my score if any update?

1. Welcome to the forum.

2. You should apply for just one "starter" card. My suggestion would be to go for a secured card with a credit union or with Discover. Do not go for the sub-prime cards.

3. The Chase Sapphire Preferred is at least a year or two down the road; that card requires a track record.

Re: Authorized Users

keekers — Sat, 27 Apr 2024 15:59:24 GMT

@devincottrell That's a great starting limit, congrats! Just spend as you normally would; no need to put charges on the card just because. With that said, there are many examples of people who spend close to their limit every month for a few months that end up receiving auto CLIs from Chase in a short time. That shouldn't be your focus, though, honestly...responsible use in general will get you where you want to go.

Re: Authorized Users

SouthJamaica — Sat, 27 Apr 2024 15:53:15 GMT

@devincottrell wrote:
Oh okay so the credit history only counts when it's your credit card only and not a authorized user even if you did use it regularly?

Sorry that's my mistake, I meant the 60,000 bonus points you can get (or around $750 in travel according to chase's website). What I meant to say was streaming services and stuff. I was thinking of a completely different card that Citi offers for gas (Citi Anywhere Visa) which will probably be the 2nd card I'll get after the CSP whenever I am able to get that.

Also yes I am aware it does have a $95 annual fee, which is nothing really compared to some other cards out there.

So I could qualify for "higher end" cards other than chase if that's correct? So if I wanted to, I could probably get the AMEX gold card myself if I decided to?

And the freedom rise definitely seems like a decent option, what would be the best way to utilize this card to gain the most and help my credit? (I've heard things like credit utilization rate etc and want to make sure that's accurate)

The best way to use your new card when you get it, to maximize your scores, is to make sure that only a small balance is "reported". It is tricky with Chase because when you pay it down to zero, it reports mid-cycle.

Re: Authorized Users

SouthJamaica — Sat, 27 Apr 2024 15:57:28 GMT

@devincottrell wrote:
Got it, thanks. I applied for the Freedom Rise just this morning and was approved at a $2500 for it. So I understand spending less than 10% of that but should you be trying to spend that amount every statement or will it really matter if you spend $40 on one statement and $230 on the next?

It doesn't matter how much you "spend" on it, for scoring purposes, it only matters what "reports". That will be (a) the statement balance, and (b) zero if you pay it off mid-cycle (a Chase feature not replicated by any other lender).

If you report $40 on one statement, and $230 on the next, no it won't matter.

Re: Authorized Users

FicoMike0 — Sat, 27 Apr 2024 17:34:54 GMT

Congratulations!