Adding an Authorized User to Citi Costco

[KLEXH25]

Hey all, I'm considering adding my fiance as an authorized user to my Citi Costco Visa. He doesn't need it for any credit reasons since he already has a long and thick file with scores in the 800's, but it would be convenient since we already split the costs for most of the purchases made on the Citi card. Plus, he tends to be the one to go to Costco (without me) since it's on his way home, so we are obviously missing out on some savings there.

So my question is, what are the pros and cons we need to consider before doing so? I understand that since I'm the primary, it's my responsibility to pay everything. Are there any negatives for him? Will it affect his account age? I got this card in June, but he got a Discover card in April so it's only a two month difference. Or does it start from the date he's added?

[chiefone4u]

The most apparent con for him is what the Utilization of the card might do to his overall utilization.

If he's got a long, thick, clean credit profile adding him as an authorized user will have minimal effect on his profile provided the bill is paid on time (everytime) and utilization is kept low.

Any lates the card may have had or has in the future will report on BOTH yours and his profile.

Him as an authorized user can dispute the card and have all history of it removed from his credit report... however if things go sideways (hopefully never happens) you are stuck with it for the long term.

[imaximous]

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@KLEXH25 wrote:

Hey all, I'm considering adding my fiance as an authorized user to my Citi Costco Visa. He doesn't need it for any credit reasons since he already has a long and thick file with scores in the 800's, but it would be convenient since we already split the costs for most of the purchases made on the Citi card. Plus, he tends to be the one to go to Costco (without me) since it's on his way home, so we are obviously missing out on some savings there.

So my question is, what are the pros and cons we need to consider before doing so? I understand that since I'm the primary, it's my responsibility to pay everything. Are there any negatives for him? Will it affect his account age? I got this card in June, but he got a Discover card in April so it's only a two month difference. Or does it start from the date he's added?

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As far as affecting AAoA, it really depends on the rest of his profile. If he has a long credit history and decent limits on other cards, it's not going to affect him much or at all.

Nice thing about Citi Costco is that he'll get a different card number, so in your case, it'll be easy to look at the statements and determine who bought what because it's clearly separated by user.

Then, another thing to consider is what other Visa cards he has already. Costco Visa isn't really the greatest in terms of earnings for purchases at Costco (except for certain promotional offerings). There are other Visa cards that offer a better return.  

[KLEXH25]

That’s great to know that purchases are itemized. Unfortunately none of his cards offer any rewards. I think he’s had his cards for 15-20 years (or more) and just keeps them for age. He got his Discover card in April because I was always talking about how much I loved mine, and now that’s his daily driver. But since he can’t use it at Costco for purchases (2%) or Costco gas (4%), he uses his debit card. I know the savings aren’t huge, but it’s better than 0%. Plus he can get 3% on dining. I want to put all the cash back we earn into our wedding fund.

I don’t carry balances or pay late, and I keep utilization low. I think it’ll help his overall utilization since it adds another $11k. He’s currently carrying a balance on his Discover, but the other 3 cards are paid off. He’s not one to actively research & apply for cards or seek credit limit increases, and a lot of what I learn I pass on to him, so his interest is passive at best.

[imaximous]

It seems like it'll be a great addition then. Maybe I made it sound like the Costco card isn't any good, but it is. It covers a bunch of categories with good returns: Gas, dining, travel and obviously Costco. I just meant that the rewards at Costco could be beaten by other cards, but for someone who's not into the rewards game, it's a very well-rounded card. 

In addition, maybe see if those other cards with no rewards can be PCed to better cards. They don't have to go to waste unless it's not possible to covert them.

[KLEXH25]

That’s a good point about PCing. I think we had discussed it a while back but he mentioned that the banks don’t have any other cards he’s interested in or don’t have PC options. I know one is a Barclays, one is a Capital One card through his Union, and another is from his credit union.

I brought up becoming an AU tonight and how it works and I think he’s interested. Just wondering about one thing. When he gets his card, will he also get a Citi login account and be able to access the account and statements, or is that just me as the primary? In other words, can he also make payments or just me?

[Moneyklutz]

He will be able to log in and make payments. I do it every month on my wife's Costco visa card. I've been an AU on her card for a couple of years now and it works great for us just like you're hoping it'll work for you.

[KLEXH25]

Awesome!!! Thanks

[Pap_32]

I dont have a citi card but i have cap 1 qs and have my DM and Sister as Au's and they cant make a account to login just me the primary holder.

[Anonymous]

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@imaximous wrote:

Then, another thing to consider is what other Visa cards he has already. Costco Visa isn't really the greatest in terms of earnings for purchases at Costco (except for certain promotional offerings). There are other Visa cards that offer a better return.  

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Not to derail the conversation too much, but which Visa cards offer better than 2% at Costco? I don't spend a lot at Costco, but every little bit helps