Some questions regarding AU accounts and Capital One

[btw1217]

I've searched all the threads I could find, but wanted to double check to make sure I'm understanding things correctly, and to seek some advice. I'm looking to add my younger brother to my credit card as an AU in order to start his credit report and for him to use in emergency. Do AU accounts still report and help the AU's score/history? I was planning on putting him on my Capital One which only has a limit of $300. Do you guys think that would be an alright card for the situation? Also, Capital One does report credit limits now, right?

And I know this sounds crazy, but adding an AU won't negatively affect my report, will it?

[Anonymous]

shouldnt hurt him unless you have high utilization on it

[btw1217]

---

@Anonymous wrote:
shouldnt hurt him unless you have high utilization on it

---

Nah, this is a brand new card that will be PIF each month. I know it's not the greatest card, but something is better than nothing, right?

[Anonymous]

Cap 1 now reports the CL.

 I know you want to help him and this may, but it's a brand new account, so he will benefit if this is perhaps his only TL. Usually an AU will most benefit from an account with a long history,  perfect payment status and low balance reported. If this is his only TL, he will still have to wait until you have 6 months of history before a score will be established. This way, he is basically getting a new account without the 3 hard inquiries. 

[WannaHouse]

We were repairing credit to apply for a mortgage and my hubby had poor scores on TU and EQ and nothing on EX (544-594-none). I added him as a AU on my Cap1 (6 mos old and 500 cl at the time; 750 now, and  30% util) and also my WalMart Discover which is from 8-08 and has a 2K limit and 1% util. His scores jumped up to 619, 629, 653. I say give it a shot. In time it will help him.

EDIT: We got approved for a mortgage too!!!!

Message Edited by WannaHouse on 11-22-2008 09:17 AM

[btw1217]

He has absolutely no credit history whatsoever, as a very young teenager, so this is really just more about getting him started than it is increasing his score. By the time he turns 18, this account would be close to 6 years old. I'm trying to instill in him, the principles of credit responsibility early on and how it works, so that he's not left in the dark. It seems like everyone I talk to from 18-26~ tells me they do not have a credit card and do not plan on ever getting one because "credit cards are bad". I try to explain to them how they're not bad if used responsibly and that they're necessary for the credit building process, but they just reply that they will never need credit. I suppose they'll never need a car or house.

My family doesn't have the best history of financial responsibility, so I'm trying to break that chain myself and set my brother on the right path very early on.

[Anonymous]

Ok, that explains some things. Good for you for helping him with this. Now is a great time for him to start learning.My DD who is 16,  is getting her education now and it's going well, but slow. She is still afraid of the credit cards and prefers her debit card since she knows she can't go over what is in her account. (USAA won't approve anything not in her checking)