Minor as AU

[Ravensfan2001]

Question came up in another thread...

If you add a minor as an authorized user, and the CC routinely reports on an AU's CR, does the CC company report for minors?

[Barris]

Yes, CC companies do report for minors who are listed as AUs. There would be no credit report for the minor per say but it will build the minor's credit history.

[NJTurnpike]

wow. imagine being 20 and having a 20 year AAoA.

[sarkell]

I had a friend his parents did this for perfect credit when he graduated hs.

[NJTurnpike]

Your friend's parents are smart to understand the value of such a strategy.

[Ravensfan2001]

Hmm... I was going to add my middle-schooler as an AU out of convenience, like when I ask him to buy something at the store for me. I have a toddler, too. Too early to start?!

[Axa]

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@Ravensfan2001 wrote:
Hmm... I was going to add my middle-schooler as an AU out of convenience, like when I ask him to buy something at the store for me. I have a toddler, too. Too early to start?!

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I'm validating this question. Does anyone have experience/opinions on this?

[webhopper]

Amex requires a card user to be 15 and up,

I ended up getting visa buxx for my daughter through NFCU.  I dont mind adding her as an AU and giving her a card when she gets older, but in my opinion, there isn't really a benefit until you plan on actually giving the kid a card.  Lets see how she does with the Visa Buxx debit card first is my thought.

True there is zero fraud liability, but I have an issue with my pre-teen walking around with a 10k+ credit line at her disposal.

By the way, when you add a kid as an AU, they inherit the full history of the account... For this reason, I'm going to add my daughter when she is older, but definately not right now.

Seems like some companies require a social security number and others do not,  they simply match by name and address. Im not sure if the bureaus can create a credit file without a SS#

Anyone have anything to add based on your experience?

[NJTurnpike]

I don't see any downside to add one's young children as AU's if the card company allows it. If you think they are responsible enough to handle having the card all the better, but just because you make them an AU, does not mean they are required to get access to the card as well.

Most kids exit college without knowing how to write a resume never mind find a job or manage their own finances. Starting your child off with 10+ years of account history when they graduate college is a very prudent thing to do.

Or would you as a parent prefer to co-sign all their college loans? Or have them pay 5%+ in interest on their first car loan?

[Ravensfan2001]

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@webhopper wrote:

Amex requires a card user to be 15 and up,

I ended up getting visa buxx for my daughter through NFCU.  I dont mind adding her as an AU and giving her a card when she gets older, but in my opinion, there isn't really a benefit until you plan on actually giving the kid a card.  Lets see how she does with the Visa Buxx debit card first is my thought.

True there is zero fraud liability, but I have an issue with my pre-teen walking around with a 10k+ credit line at her disposal.

By the way, when you add a kid as an AU, they inherit the full history of the account... For this reason, I'm going to add my daughter when she is older, but definately not right now.

Seems like some companies require a social security number and others do not,  they simply match by name and address. Im not sure if the bureaus can create a credit file without a SS#

Anyone have anything to add based on your experience?

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On another thread, where this question arose, it was said that with Amex, you can limit the line of credit she can use on her own card. I haven't heard this with any other cards.

http://ficoforums.myfico.com/t5/Credit-Cards/AU-minimum-age/td-p/1977777/page/2

I, personally, wouldn't mind adding my son and inheriting my whole card history. When he applies for credit as a young adult, maybe an underwriter will be swayed in the direction of approval if he/she sees that he has financially responsible parents. Just a thought.