Questions about adding AU

[Anonymous]

Hi everyone!

I want to add my mom as an authorized user to one or two of my accounts to help her build her credit back up.   Here’s a little bit of the situation…  Years ago my credit wasn’t so great (think it was somewhere in the 500’s).  About 9 years ago, I opened Capital One (current limit is $500) and First Premier (current limit is $450) as rebuilder cards and have always made every payment on time.  Paid the cards off in December/January and haven’t used them since, but I kept them.   (Side note, I posted a question about closing these accounts a couple of weeks ago and got advice to do it, but I haven’t gotten around to actually doing it.  I called FP and they credited my account approximately $40 to offset the monthly fees for the rest of the year so I would keep the account open.)  Recently, I was in the market for a car loan.  I didn’t realize that my credit score had gone from low 500’s to 767.  I qualified for a really low rate on a used car loan (dealer couldn’t even beat it) and a World Mastercard with a $10k limit and 10.9% rate with the same lender using 1 HP. 

Here are my questions:

Would adding my mom to my Cap One card help her?  Do they report AU’s?  Will it report my entire credit history with them or just from the date I add her going forward?  I was going to close my the account, but was thinking of maybe keeping it open and just running a couple of monthly bills through it and PIF before they report. 

Should I also keep the First Premier card through the end of the year and add her as an AU on this one also?  Same questions as above – Do they report AU’s?  Will it report my entire credit history with them or just from the date I add her going forward?  Come December, this card is being closed because I don’t want to pay the monthly or annual fees.  Will it hurt her if I add her now and then close it in 6 months?

With her credit being pretty bad right now, will the creditors for the accounts I add her to consider closing my accounts?  For example, will Capital One pull her credit report and possibly close my account or reduce (the already ridiculously low) credit limit because her scores are low, among other things?

Is there any way that adding her as an AU to my accounts could negatively impact my credit score?  I was at 767 in May, 788 in the beginning of June (SW alert said Mastercard started reporting and my credit score jumped), then down to 784 when the inquiry for my car loan/credit card hit and now 772 (SW alert said $0 balance reported on FP card, as opposed to $6 previously reported for monthly fee - apparently a $0 balance is worse than a $6 balance).  I’m trying soooooo hard to get my score to 800 that I don’t want to do anything to drop it.

I’ve only posted a few times before, but I lurk a lot and have found so much information that has really helped me understand the whole credit scoring thing a lot better, but I know I still have A LOT to learn.

Thank you all in advance for your suggestions!

(Edited to correct credit scores and add one more question.)

[09Lexie]

Congrats on your rebuilding success and your willingness to help your mother.

Its hard to say if adding your Mom to your Cap 1 would help her without knowing her cr profile. Generally speaking, Cap 1 has reported AUs, it may or may not report your entire history- usually it does. The problem you may have is if the CBs will be able to match your info to your mother ( same last name, and address?)

I would not keep FP after their reimbursement ends.

Your moms bad credit should not bleed onto yours. I would suggest you help your Mom with her credit, do not give her your cc and educate her if necessary, so that she does not repeat her mistakes.

Just giving her new cc's without correcting the issues as to how her credit became bad is a mistake IMO

[Anonymous]

Hi Lexie,

Thanks for the advice!  She and I have already talked about it and she understands that I want to help her, but will not be giving her access to my accounts or cards, but rather just adding her as an AU.  She's seen how much I've improved my credit score and wants to do the same...working on getting her signed up for myFICO in the next day or so.

As far as her credit history is concerned, she thinks it's mostly medical bills that have gone to collections, probably late payments on credit cards, a foreclosure from years ago, etc.  She's a credit mess.  She and I do not have the same last name (I'm going through a divorce and still have my ex's last name for the time being), but I did use her address for personal reasons and it's currently the address on my credit report.  I think the adress will match the one on her credit report.  I looked at Cap 1's website and clicked on the button to add an AU and it asked for her name, address, social, etc. and gave an option for sending a card (which again, I will NOT be doing).  Should that eliminate any problems with matching my info to her so it reports to the CB's?  

Definitely canceling the FP in December when the reimbursement ends.  Should I add her to this account in the meantime knowing that I'm going to close it in 6 months? 

I really appreciate your help!  I've seen a lot of your posts and was hoping someone as knowledgable as you would jump in and help me!  

[09Lexie]

Your info should report based on the address/name. I wouldn't worry about FP- and I would suggest checking with the Rebuilding Forum for assistance with medical collections.

Definitely a good idea for your Mom to be an active participant in fixing her credit. I strongly believe if one sees the hard work it takes to better their credit- the more they learn and appreciate their new and better credit.

Good luck to you and to your Mom