Minor as AU

[grubs]

I know citi bank told me that there was no minimum age requirement when I asked this question.

[zerobacan]

It will be interesting to see someone my son with a Credit history older than him

for example, being 18 and having a 20 Year old CR history from being an AU in my CC that I have before he was born.

Banker: Darn son your Credit history is older than you! There you go a 25ks Hilton Honors card!

[VirtualCuriosity]

Yeah, I think there is something intriguing about it for the purpose of being able to have some history.  However, it also feels deceiving.  I can imagine young adults having perfect history and ruining it as quick as they were released from the nest.  I suppose as long as they really learned the idea of credit at home.  For now though, I will probably stick with the power of saving and cash lessons. 

[mirachi]

Why not just put the child on as either an AU or joint holder but never give them the card? (if you're worried about the child walking around with a high limit card) 

...or use this as an excuse to apply for a new cc (but request them to decrease the CL to something like $500-$1000 upon approval) so that the child can learn financing skills

[mikka1]

I added my son as an AU to one of my cards that does not ask for AU date of birth when he was 3 :-)

I doubt it would make a huge difference in 15 years time (I expect if it becomes too popular for people to add their kids as AUs, banks will tweak their scoring models to basically cut any tradelines that started before a person turned 16 or something from AAoA calculation), but as it does not cost me anything I just consider it as a very small thing I can do to help my son in future. Another big task for me will be to explain how to manage finance in a responsible way when he reaches a certain age :-)

[CreditScholar]

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@Ravensfan2001 wrote:

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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.

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+1. Amex will let you set a cap for AUs. Mine was capped at 25k per month when I was 15, which then rose to 50k per month a year and half later. There was no realistic way as a teenager I could spend that much every month, but nonetheless the cap was there.

[AndySoCal]

DOing this could potential problem for the AU. This would be a pontential fraud alert on the credit report.  I also would not send a minor into the store with a credit card it will cause a problem. edited to add

http://www.creditcards.com/credit-card-news/price-mueller-minors-credit-card-contracts-debt-responsi...

[CribDuchess]

A year ago, I added my 15-year old son as an additional cardmember on my Amex Optima Platinum card.  Last summer, I also added him as an additional cardmember on my BCE card.  And a couple of months ago, I added him as an AU on my Chase Freedom and Capital One Cash Rewards cards.  My primary reason was to allow him to spend money without me having to withdraw cash from the bank all the time.  You can't just withdraw $10 or $15.....most ATMs have a minimum of $20.  As an added bonus, he is earning rewards for us as he spends.  There are no rewards for spending cash.  Now that he's driving, it's been really nice for him to use the Freedom when he gases up.

I haven't put any limits on his Amex cards.  I trust him.  And I've explained to him that having credit cards is a privilege, not a right.  They are a tool for convenience, purchase protection and cash back rewards.  I am not sure if they are reporting on his credit report - since he's a minor we can't buy his credit reports yet.