Question about authorized users

[Anonymous]

Hey all! So my sister has almost no credit right now (secured Visa through her credit union and student loans). I'm thinking about adding her on as an authorized user on my AMEX revolver to help build it up for her. She wouldn't even use the card and I always make payments on time and keep low utilization on it. I'm curious how much exactly this will help her by doing this?

[Anonymous]

Being an AU will no doubt help her build credit, as long as you are responsible with it of course.  Ideally you would want her to get her own card, but this is a good way to start.

[Anonymous]

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@Anonymous wrote:
Hey all! So my sister has almost no credit right now (secured Visa through her credit union and student loans). I'm thinking about adding her on as an authorized user on my AMEX revolver to help build it up for her. She wouldn't even use the card and I always make payments on time and keep low utilization on it. I'm curious how much exactly this will help her by doing this?

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@Anonymous,

It will help her tremendously.  But as someone suggested, once she is up and running in the credit department you should encourage her to get her own cards.

[Anonymous]

YMMV, but prior to October, all I had was a $300 QS1.  My mom added me as an AU on her discover, and all my approvals have been since then. Granted, I've done a lot of repairing over the last few years, but being an AU on a 1999 model Discover with a 14K limit definitely put me in a better place. 

[newhis]

There is a difference between Amex AU and Discover (other banks) AU.

Amex AU:

• will report as a new TL no matter if the card is 1 or 30 years old
• will lock the MSD date (useful when the AU gets own Amex cards to backdate)

Discover (other banks):

• will report as old TL and some/most of the history will get reported
• will not help (the date) when the AU gets own card (will not backdate)

There are some lenders that do not count AUs when they apply for new credit.

For better score add AU to old card with low util and high credit limit (Discover, Chase, BofA). Use Amex only if they don't have a MSD date with them.

[Anonymous]

If you REALLY want to help your sister ... add her to all of your old cards.  Especially the AMEX since the MSD is so crucial...she will get a 2015 MSD but that's starting point for her future AMEX.

You don't have to give her the card; just add the name.

It helps tremendously and is one of the greatest financial gifts you can give since it gives her credit age.  

It is obviously not weighted as well as your own cards but they certainly still count.  In a few years when she gets her own cards, she will get much better limits and easier approvals.

My brother had AU ONLY for 3 AMEX accounts since 2005... and AU on some other old accounts. No other credit whatsoever and nothing in his own name.  He just applied for a Costco TE AMEX and got $4,000 starting limit and approved for PRG.  Of course I was the one to push him to do it

[Anonymous]

You should add her on a Cap 1 card if you have one . It would report all your payment history on her credit report .

[Anonymous]

So let me get this straight:

- Add her to AMEX for help getting into them later on as it locks in her start date? For this scenario would she get my start date as well or would it be 2015?

- Add her to any other card and she gets they payment history? Would she get the payment history for the AMEX as well or only other banks?

[Anonymous]

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@Anonymous wrote:
So let me get this straight:

- Add her to AMEX for help getting into them later on as it locks in her start date? For this scenario would she get my start date as well or would it be 2015?

- Add her to any other card and she gets they payment history? Would she get the payment history for the AMEX as well or only other banks?

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She would only get 2015... and yes it locks it in.  Later on, If it doesn't automatically happen when she gets her OWN AMEX card, just tell her to chat and they will change the date.  In the future when she gets her own AMEX, remind her to apply in January if possible because even if it's 2020, her date will report as January 2015

AMEX has stopped backdating AU to original owner for some time now.  Her date would be when she was added.  

AMEX would report as a new tradeline for her.  For your other cards, she gets all of your payment history.  So on other cards you have, they will report all the way back.  Not every card will report to every bureau but she should get most of it.

You don't have to give her any of the cards.  You don't have to use them although I would use her AU AMEX a few times just to be sure some charges come up for her card.  Just to be sure she doesn't have an MSD problem later...maybe I'm just paranoid.

[Anonymous]

Ok I think I have a good handle on it. Im going to add her on as AU on AMEX to lock in her MSD. Does BoA charge a fee to add on an AU for their Alaska Airlines Visa?