If I add my son as an authorized user how will it affect his credit?

[Anonymous]

Also - sorry to double post but if I get the cap one secured card and add him as an AU, will my 2010 problem translate to him since they are both cap one cards? Or will all that happens is what is on that specific card? Sorry I am 54 years old and I don't really know much about this stuff, LOL.

[pizzadude]

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@Anonymous wrote:

Also - sorry to double post but if I get the cap one secured card and add him as an AU, will my 2010 problem translate to him since they are both cap one cards? Or will all that happens is what is on that specific card? Sorry I am 54 years old and I don't really know much about this stuff, LOL.

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No - your new account would have its own payment history that is separate and distinct from your other Cap1 account....

[Anonymous]

OP, when you add someone on as AU to a card, they inherit ONLY the history (both positive and negative) of that particular card, not your credit history.

Assuming you have an old card with only positive history, there are still other things to watch out for.  The original card holder may have 10 cards for example with 10k limits.  If they add someone with little no credit history as AU, the AU person may have no credit cards or only a couple with 500 limits.  So if the AU card is in active use, the AU's utilization will basically swing with the AU card.  So ideally, an AU is only added to old with long positive history and is lightly or not used.

[Anonymous]

Very interesting. Even if I pay off the balance each month on the card that would happen?

[aloush11]

Btw if you choose to remove them.. on the CR it should show account terminated, but the history sticks.

[Anonymous]

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@aloush11 wrote:
Btw if you choose to remove them.. on the CR it should show account terminated, but the history sticks.

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This really isn't true except with AMEX.  Why?  AU uses same card number and account info as main card.  It won't say account closed unless main card holder closes card.  Typically, it disappears from credit report.  However it may stay reporting, but that is easily fixed with a dispute with CRA as Not Mine.

[Anonymous]

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@Anonymous wrote:

Very interesting. Even if I pay off the balance each month on the card that would happen?

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Do some reading on the forums about reported balances and utilization.  Basically most cards report your balance on statement date (the day your cycle closes) and not on due date.  As such if you PIF but not before statement is generated, you will have reported balance and therefore potential utilization issues.

[Revelate]

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@Anonymous wrote:

Also - sorry to double post but if I get the cap one secured card and add him as an AU, will my 2010 problem translate to him since they are both cap one cards? Or will all that happens is what is on that specific card? Sorry I am 54 years old and I don't really know much about this stuff, LOL.

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Think I'm missing something here, is the intention to help out your son credit wise?

If so, skip the whole AU thing currently.  Don't open up a secured card for yourself, open up a secured card for HIM.  Do two as a matter a fact.  If he's been helping you pay bills, and is 18+, maybe he can do it on his own, but in every form and fashion in your particular situation, his own credit cards >>> any authorized user tricks you can do right now.