Ethics of adding authorized user

[creditconcept]

Hello All,

I have a question. First, some background. My credit profile is healthy and I have 5 revolving accounts reporting as in good standing. 

Now, I have a close family member who has atrocious credit (417 Fico). Is it legal to add them as an AU to all 5 of my accounts but not issue them a card? Is this ethical? Does this change the reporting of the accounts on MY report (individual, jouint, AU....etc)? And lastly, will this actually impove their credit score or will creditors disreguarde the accounts since they are AU?

Thanks guys!!

[Anonymous]

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@creditconcept wrote:

Hello All,

I have a question. First, some background. My credit profile is healthy and I have 5 revolving accounts reporting as in good standing. 

Now, I have a close family member who has atrocious credit (417 Fico). Is it legal to add them as an AU to all 5 of my accounts but not issue them a card? Is this ethical? Does this change the reporting of the accounts on MY report (individual, jouint, AU....etc)? And lastly, will this actually impove their credit score or will creditors disreguarde the accounts since they are AU?

Thanks guys!!

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It's certainly legal as well as ethical to add someone as an AU.  It won't change the way your card(s) report on the credit bureaus.  As to whether it will help, that's very hard to say.  At the least it can't hurt and may end up improving their scores somewhat.  Smart move not to give them the card.

[SunriseEarth]

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@creditconcept wrote:

Hello All,

I have a question. First, some background. My credit profile is healthy and I have 5 revolving accounts reporting as in good standing. 

Now, I have a close family member who has atrocious credit (417 Fico). Is it legal to add them as an AU to all 5 of my accounts but not issue them a card? Is this ethical? Does this change the reporting of the accounts on MY report (individual, jouint, AU....etc)? And lastly, will this actually impove their credit score or will creditors disreguarde the accounts since they are AU?

Thanks guys!!

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No, you don't have to provide an AU a card.   Many people prefer not to do this, so as not to put themselves at risk.   You wouldn't see any changes to your report (unless your AU contributes to your balances or payments).   It could improve the AU's credit score, but it depends on quite a few factors.   It'd be a bit hard to say without knowing more about your profiles.

Some creditors disregard AU accounts (IIRC, Chase is one), but others include them in their scoring. 

As for ethics, I really think only you can decide what you consider "ethical".   I personally see no ethical issue, since you are ultimately responsible if the AU were to get one of your cards.  I doubt most members here would see an issue.   Most important is how you feel about it.  

[kdm31091]

Do bear in mind that even if you don't actually give them a card, once they are an AU they can theoretically call up and get a replacement card mailed to their address.

As far as ethics...I don't see how it's unethical. It will help their credit history (if yours is good, anyway), and it won't hurt you.

[Anonymous]

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@creditconcept wrote:

Hello All,

I have a question. First, some background. My credit profile is healthy and I have 5 revolving accounts reporting as in good standing. 

Now, I have a close family member who has atrocious credit (417 Fico). Is it legal to add them as an AU to all 5 of my accounts but not issue them a card? Is this ethical? Does this change the reporting of the accounts on MY report (individual, jouint, AU....etc)? And lastly, will this actually impove their credit score or will creditors disreguarde the accounts since they are AU?

Thanks guys!!

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Why would it EVER be illegal?

[CreditCuriosity]

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@kdm31091 wrote:

Do bear in mind that even if you don't actually give them a card, once they are an AU they can theoretically call up and get a replacement card mailed to their address.

As far as ethics...I don't see how it's unethical. It will help their credit history (if yours is good, anyway), and it won't hurt you.

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gotta disagree with the bolded..  AU's accounts for the majority if not all the lenders goto the primary card holders addresses and AU's probably don't even have access to re-order cards either.

[Anonymous]

it's your account, you can add the president as AU if you want to (I mean... if he asks you to add him for whatever reason, and you're okay with it). If you don't trust the AU to be responsible with the cards, then you don't have to give him/her the cards.

my CSP is an AU card from my brother's account, and I actually have the card with me because he knows I won't go shopping spree with the card, he told me i could use it in case of emergency... although I wonder if coach's having semi annual sale is considered emergency?, plus I nagged him until he added me as AU and gave me the card because I wanted a metal card

[Anonymous]

I have an AU for my cards in my English name, and an tempted to have one like..Homer Simpson or..Madonna..just to see if the people who swipe my card really pays attention to my name or not.

Kinda like when you order at KFC and they ask for your name

[Anonymous]

Add them as AU, but don't give them the cards or tell them, it can only improve their score over time.

- Homer

[UncleB]

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@CreditCuriousity wrote:

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@kdm31091 wrote:

Do bear in mind that even if you don't actually give them a card, once they are an AU they can theoretically call up and get a replacement card mailed to their address.

As far as ethics...I don't see how it's unethical. It will help their credit history (if yours is good, anyway), and it won't hurt you.

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gotta disagree with the bolded..  AU's accounts for the majority if not all the lenders goto the primary card holders addresses and AU's probably don't even have access to re-order cards either.

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In my experience, *both* of you are correct.

If an authorized user calls a credit card company and tells them a card is lost/defective, they will mail it USPS to the billing address on file (the primary card holder).

However, if the AU is traveling (or tells the CSR they are) there are issuers that will overnight a new card to you regardless of where you are.  American Express specifically is also known to have locations in larger cities (usually travel agencies) that have the proper equipment to create a new card on the spot.  This would work for the AU the same way it would work for the primary account holder.