Personally I wouldn't trust anyone who screwed up their credit a lot in the past with $5,000 unless that's chump change to you, I would however get a Amex card and add them to that, because Amex allows you to control their spending limit. You can set their limit to whatever you want 500+ (maybe lower) this way they can only screw you over on that much. Becareful $5,000 is a lot of money, and don't worry it still reports on their credit at your full limit so it still helps their score.
@distantarray wrote:Personally I wouldn't trust anyone who screwed up their credit a lot in the past with $5,000 unless that's chump change to you, I would however get a Amex card and add them to that, because Amex allows you to control their spending limit. You can set their limit to whatever you want 500+ (maybe lower) this way they can only screw you over on that much. Becareful $5,000 is a lot of money, and don't worry it still reports on their credit at your full limit so it still helps their score.
Amex will hold ACMs liable should there be a default.
Starting Score: 675
@drkaje wrote:
@distantarray wrote:Personally I wouldn't trust anyone who screwed up their credit a lot in the past with $5,000 unless that's chump change to you, I would however get a Amex card and add them to that, because Amex allows you to control their spending limit. You can set their limit to whatever you want 500+ (maybe lower) this way they can only screw you over on that much. Becareful $5,000 is a lot of money, and don't worry it still reports on their credit at your full limit so it still helps their score.
Amex will hold ACMs liable should there be a default.
That wasn't the case on the Zync and I'm not sure on others either. From the cardholder agreement:
Promise to pay
You promise to pay all charges, including:
● charges you make, even if you do not present your card or sign for the transaction,
● charges that other people make if you let them use your Account, and
● charges that Additional Cardmembers make or permit others to make.
@ Rev,
The ACM agreement used to say something along the lines of 'Using the card is an agreeing to accept responsibility for your charges'. Things could have changed, I haven't read the agreement on my Delta and DGF isn't an AU on my BCP.
USAA is worse, though. AUs can add AUs!
Personally; I feel it's a little wrong-minded for people to assume no responsibility for their own spending.
Kage,
The BCP is line item identical in the card holder agreement. I completely agree with you on the presumption of no responsibility and Amex may well chase the ACM first, but if they flake, the original member is left holding the bag. Amex's collection agency in this case I suppose heh.
As for USAA's policy, 
I rather blankly forwarded through the T+C and other things applying for their Rewards MC lately, not that I plan to have any AU's in the conceivable future, but wow.
@ Rev,
There's also no way to apportion the CL with USAA.
Loosely worded from cardholder agreement page 13: "An authorized user shall have the same authority as a cardholder to (1) make purchases, balance transfers, or cash advances; (2) access account information; and (3) authorize others to use the account" blah blah blah "To terminate an authorized user, a cardholder must first notify us and then request a new account number. if a cardholder chooses to keep the same account number, you understand that we cannot prevent the person from continuing the use the account and you agree that any further use by the person will remain authorized"
On page 12 it says they will try collecting from the AU should account holder fail to pay. Among blah blah it says "This means we may, at our sole option, collect the entire account balance from any one of you, or we may collect a portion from each of you"