Add Close Friend as Authorized User: Benefits? Possible Problems?

[CharlesSu]

Hey guys,

I have a close friend who just arrived at the states. She is an international student and doesn't have SSN yet. Can I add her as the AU? Will she have a seperate credit card account or does she share my account? Thanks!

Edit:

Can I add some as AU if she doesn't have SSN? 

[xerostatus]

She will share your account, and you will solely be responsible for any and all charges/payments.

Act accordingly.

[CharlesSu]

Thanks! So if she doesn't pay her bill on time, I will have a bad record on my credit file, right? Will adding her as my AU help her build the credit? 

[parkman]

Adding her will help build her credit through average age of accounts the most. What many people do here, and what I'm going to do to help my kids, is add them as an authorized user, but not give them the card. That way I don't have to worry about excessive usage (other than from myself, haha.)

[CharlesSu]

I see! Thanks a lot!

I am considering adding her as AU of my highest CL card. Will the higher CL help her get a credti card in the future? Do I need to go to the bank to add someone as AU? 

[parkman]

Most cards will allow you to add an AU online. Some people believe that high limits beget high limits, and anecdotally it's true. So it would definitely help.

[CharlesSu]

Thank you so much for your help. By the way, do I need to pay extra anual fees if I add someone as AU? 

[Involver]

You would not pay any additional annual fees, as you are still only using a single account.

[CharlesSu]

Thanks! 

[parkman]

Creditors love authorized users. It increases the likelihood that the line of credit will be used, and therefore their merchant fees and potentially interest charges, which is why their AU policies are so lax. When I activated my AMEX the guy asked me if I'd like to add any authorized users.

So having said all that, no they won't charge you extra.