AU - CB reporting

[SomewhereIn505]

High school graduating grandson is getting ready to graduate/move in with us in a few weeks.Thinking about his future, I was thinking of starting his credit journey by putting him as AU on a card. Here’s the question - if I limit his spending as a AU - does that limit reflect on his CB or the whole card limit? Example - if the card limit is $10K but I limit him to $250 spending limit, which would reflect on his CB?

[FireMedic1]

You can set what the AU can spend. But it will still reflect the same on both sides of the account as if you didnt limit spend. FICO looks at the account as a whole. Your limit and reporting will reflect on both sides.

[Kforce]

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@FireMedic1 wrote:

You can set what the AU can spend. But it will still reflect the same on both sides of the account as if you didnt limit spend. FICO looks at the account as a whole. Your limit and reporting will reflect on both sides.

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^^^^^ This     .however.

Many issuers do not let you set a limit for AU accounts.

Many do not allow a separate log in for viewing or payments by AU

Different issuers will show card age as your cards age but others report as a new account.

Which card or cards to add him as an AU,  depends on if you want a tool for him to use and learn how to handle a card or just an account to help his score by age and CL.  He could be added to a couple of older accounts with good age and CL's and never be given a card.

Another thing to consider depending on his name and where his address has be reported.  Many issuers do not ask for SS# for an AU card, making it hard/impossible to link him for reporting to CB's.  For insurance that it gets reported correctly, I would add him to a card where a SS# is required for adding him.

Just some things to consider.

Good luck 

[SomewhereIn505]

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@Kforce wrote:

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@FireMedic1 wrote:

You can set what the AU can spend. But it will still reflect the same on both sides of the account as if you didnt limit spend. FICO looks at the account as a whole. Your limit and reporting will reflect on both sides.

---

^^^^^ This     .however.

Many issuers do not let you set a limit for AU accounts.

Many do not allow a separate log in for viewing or payments by AU

Different issuers will show card age as your cards age but others report as a new account.

Which card or cards to add him as an AU,  depends on if you want a tool for him to use and learn how to handle a card or just an account to help his score by age and CL.  He could be added to a couple of older accounts with good age and CL's and never be given a card.

Another thing to consider depending on his name and where his address has be reported.  Many issuers do not ask for SS# for an AU card, making it hard/impossible to link him for reporting to CB's.  For insurance that it gets reported correctly, I would add him to a card where a SS# is required for adding him.

Just some things to consider.

Good luck 

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That is exactly where I was going with it. Put him onto a card that has a decent CL (which he will not get the card) and possibly another card, which will be limited (and for emergency use) so he can begin learning about credit cards and how to use properly. Many thanks to both of you for chiming in and confirming what I was thinking!

[Kforce]

Looking at you card line up:

Amex cards let you set AU limits but are also one of the issuers that report it as a new card and would lose the cards age history. (The Good & Bad).  I believe card age is more important than CL in helping an AU's profile.  Might be an OK emergency, but one of the others might be better as the age/history card.

Discover has option to give SS#, don't have any of you other issuers for info

[SomewhereIn505]

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@Kforce wrote:

Looking at you card line up:

Amex cards let you set AU limits but are also one of the issuers that report it as a new card and would lose the cards age history. (The Good & Bad).  I believe card age is more important than CL in helping an AU's profile.  Might be an OK emergency, but one of the others might be better as the age/history card.

Discover has option to give SS#, don't have any of you other issuers for info

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Thank you so much for your insights! One card that doesn’t look to be listed is Citi AAdvantage, opened 7/2018, CL $17000. This was the one I was going to put him on but not necessarily give him the card. I was thinking about AmEx BCP but Disco is another choice for the limited spending/emergency use option.

[ptatohed]

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@Kforce wrote:

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@FireMedic1 wrote:

You can set what the AU can spend. But it will still reflect the same on both sides of the account as if you didnt limit spend. FICO looks at the account as a whole. Your limit and reporting will reflect on both sides.

---

^^^^^ This     .however.

Many issuers do not let you set a limit for AU accounts.

Many do not allow a separate log in for viewing or payments by AU

Different issuers will show card age as your cards age but others report as a new account.

Which card or cards to add him as an AU,  depends on if you want a tool for him to use and learn how to handle a card or just an account to help his score by age and CL.  He could be added to a couple of older accounts with good age and CL's and never be given a card.

Another thing to consider depending on his name and where his address has be reported.  Many issuers do not ask for SS# for an AU card, making it hard/impossible to link him for reporting to CB's.  For insurance that it gets reported correctly, I would add him to a card where a SS# is required for adding him.

Just some things to consider.

Good luck 

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@Kforce 

Thank you Kf for this.  A month or two ago, I added my 12 yo as an AU to my citi Double Cash for the purpose of him establishing credit history.  It's been bothering me that they never asked for his SSN.  I'm thinking now I should perhaps get him a card from another lender who asks for SSN, even if it's only the DC card that I let him actually use.  

If the table shown here is correct, then my only choice (a lender card that I have, age 12 is allowed, they ask for SSN) is Capital One.  It does list the Chase requirements as Not Available - does anyone know if Chase requests an SSN for an AU?  

I am still confused how the whole thing works.  When I apply for, say, a citi card and add my wife as an AU, without supplying her SSN, they show up on her credit report.  

[Kforce]

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@ptatohed wrote:

If the table shown here is correct, then my only choice (a lender card that I have, age 12 is allowed, they ask for SSN) is Capital One.  It does list the Chase requirements as Not Available - does anyone know if Chase requests an SSN for an AU?  

I am still confused how the whole thing works.  When I apply for, say, a citi card and add my wife as an AU, without supplying her SSN, they show up on her credit report.  

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If last names are the same and addresses match, they usually can be linked automatically.

The problems occur when names .&/or. addresses don't match, or AU has neither in the system.

A SS# is just a better method than an AI search.

I have had no problems with wife & kids, however we also all live together and last names match.

All had a checking/savings with name & SS# in the system first.

You can log in to each issuer and pretend to add an AU, see the questions and then just cancel out.

AU's being added is almost always an on line option, questions page one.

A few do make it a paper or call option, but most major banks and CU's use web page for AU.

I think only AOD made it hard for me to add an AU.

[ptatohed]

Looks like no SSN for Chase.

[Kforce]

@ptatohed :

I am wandering a little off OP subject.

AU is fine to start reporting and as a teaching aide.

As far as building credit for a son/daughter.

I would get a joint CC with them.

That way when they have a few cards of there own and you are ready to kick them out of the nest, the credit history will still be reported for ~10 years.  I got a joint with my youngest daughter when she was 15 from a local CU.  Had it over two years before she could get one on her own.  About ready for her to leave the nest, when closed it should hang around for a lot of years.  AU accounts stop counting very quickly.  You could do the same as many with a AU card and him never see or use it.  Just another option with longer history reporting when time comes to separate finances (Comes quicker than you think).  I am at that point and think the joint with youngest is better than just AU's like I did with her older sister. (YMMV)  PS: I did both a joint and AU's