Does piggy backing work?

[Anonymous]

I was considering adding my sister as an au would it report and build her credit?

[PetRaccoon]

Generally yes, but some banks don't like seeing that you only have AU accounts (if thats the case).

[MarineVietVet]

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@Anonymous wrote:
I was considering adding my sister as an au would it report and build her credit?

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Yes it can help her IF the account is older than any of hers (older than her current AAoA is even better), IF the payment history is long and clean, IF the utilization is very low, and IF it will report to the CRA's. Not all cards will do this. You need to ask the company first. She will inherit the entire history of this account. One caveat however; if this account starts to go south your credit will be affected as well. Keep that in mind.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

It's a citi forward card, 5500$ credit limit they asked for her Ssn and name so I was assuming It would report back, I don't owe money on it I pay it in full before statement hits

[Anonymous]

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@Anonymous wrote:
It's a citi forward card, 5500$ credit limit they asked for her Ssn and name so I was assuming It would report back, I don't owe money on it I pay it in full before statement hits

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Creditors can see that it's an AU account if they do a manual review - but for automated systems, I think it would artificially boost her score.

It's basically what I did for my sister-in-law - she's still a minor so she can't have her own credit card, but I have her added on as an AU on one of mine. That way once she applies for a card in her own name, she'll at least have some credit history built already. If nothing else, it'll at least give her a fico score (I think?) instead of her getting stuck in the no-score-for-6-months limbo.

[Anonymous]

It certainly does.

MY credit sucked, but then the wife got her credit started we put me on as an AU, not to build my credit because I was told that it wouldnt affect my rating, but just so when I ran to the store I could charge groceries and stuff.

A few months later I got a CC app from Washington Mutual again and applied and this time it was approved.

I was confused because they had rejected a few apps already so I got to looking at my credit report and turned out it was way higher than it should have been.

A little searching and I found out that being an AU on my wifes cards and having a good payment history on them HAD pushed my own credit score up.

We both have perfect credit at this point and it was all by using CC's responsibly and learning how to use the cards in a way to help build our scores.

[Anonymous]

In my experience only some creditors can see it. My dad added me as an AU on an old cap1 card and I was immediately approved for an Amex plat. However, when I applied for a chase card it was denied. I tried to recon but the account didn't show up at all on their report.

[RyVision]

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@Anonymous wrote:
I was considering adding my sister as an au would it report and build her credit?

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I hope you're considering adding her to your AMEX Zync. Even if you don't give her the card being it's just to give her history later and build her credit a bit, you could let her use it when with her (swipe the card yourself, have her sign) put it back in your wallet and know all that's going on with it etc.  It would give her that date as a member with AMEX for the future if she were to apply for her own AMEX product.

I'm guessing you know all that, this is a "just in case" mention.

[chris2k5]

Was thinking of doing the same with both of my younger siblings...

Question is...do they actually have to use the cards or can I keep the cards for them and just only use mine to spend/pay off to build their credit?

[RyVision]

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@chris2k5 wrote:

Was thinking of doing the same with both of my younger siblings...

Question is...do they actually have to use the cards or can I keep the cards for them and just only use mine to spend/pay off to build their credit?

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Anything with AMEX, an AU (additional card member's card, as I was reminded, it's not just an AU, AMEX doesn't use that term) needs to show some activity once in a while. Otherwise, it can look to AMEX as though you're only using them for the backdating feature, esp if you have more than 1 AU under your account with no activity. With only 1 I doubt AMEX would really notice the lack of usage, like I said above, if  you're ever with the person, swipe the card for them and have them sign. You can always tell AMEX you're just holding the card and wanted them to be a member and allow them to use it on occasion. They know a lot of their members do that.

They do not have to actually have the cards in their possession or know any details about the card, you're the responsible party in control of how those cards and their info is handled.  As long as the cards are active under your account for 18 months (I THINK, it could be 16), AMEX will consider the member since date as permanent. No other card will do that. If you ever close the account, or cancel the additional card, don't throw it away, they may need it later for the account number to prove their member since date to AMEX later.

Nearly any card other than AMEX won't show a different account number, so the AU card wouldn't have to be used at all to build some history and remain unquestioned by the issuer. Once closed however, the history stops building (it should report , if it did before, for 10 years)  and any new card they'd get with that company will not back date like the AMEX. Not all AU CC's report, most do, AMEX just does so in the most beneficial way.

Hope that helped shed some light on that mystery