Advice on CoSigning / AU

Anonymous · ‎08-11-2014

New member looking for a bit of advice. To keep it short, I'm looking to build credit for my spouse who has absolutely no credit, starting from scratch(has never lived in the US until now, just got a SSN a few days ago). My score is 760ish and I have multiple cards, though I rarely use more than 1. At first I assumed that we would have to get her a secure card, though co-signing / adding as an AU sounds like a better option for building credit quicker. Issue is I am unsure of which to do, I haven't found a solid answer online about which is better in this situation, tons of opinions though. Also, if anyone has any recommendations on cards for someone starting out w/ a cosigner(assuming it's a better option than AU) I'd appreciate it. Thanks.

Closingracer99 · ‎08-11-2014

Co-signer is a better option or you could add her as a joint account ? Some banks could care less about AU accounts on your report if your applying for a new card like chase from what I have read.

My Cards: Amex BCE: $9,000, Amex Hilton HHonors: $2,000, Amex ED: $12,000, Barclays NFL extra points: $3,000, Bank of America MLB cash rewards: $17,000, BBVA compass NBA Amex triple double rewards: $17,000, Chase Amazon: $1,000, Chase Freedom: $9,000, Chase Sapphire: $5,000, Chase Slate: $5,000, Chase Disney: $4,000, Citi Double Cash: $5,400, Citi AA plat: $5,500, Citi Simplicity: $3,000, Citi Thank you preferred: $8,800, Capital one GM: $2,000, Capital one PlayStation: $3,000, Gamestop: $1,150, Amazon Store: $5,000, Ebay MasterCard: $5,000, American Eagle Storecard: $750, Macy's: $500
EX: 744, TU:750, EQ: 740

Anonymous · ‎08-11-2014

Thanks for the reply. I have no clue on how the joint-account stuff works. I prefer to add her as an AU to my current cards if it's actually worth it, I'd rather not apply for a new card, but will if there is a huge difference between cosigning and just AU.

Closingracer99 · ‎08-11-2014

@Anonymous wrote:
Thanks for the reply. I have no clue on how the joint-account stuff works. I prefer to add her as an AU to my current cards if it's actually worth it, I'd rather not apply for a new card, but will if there is a huge difference between cosigning and just AU.

You both Sign up for the Card. AU has it perks but if you really want to help her Credit Joint account could fast track imo. Since she is your Wife unless you suspect it going south Joint is a good choice

My Cards: Amex BCE: $9,000, Amex Hilton HHonors: $2,000, Amex ED: $12,000, Barclays NFL extra points: $3,000, Bank of America MLB cash rewards: $17,000, BBVA compass NBA Amex triple double rewards: $17,000, Chase Amazon: $1,000, Chase Freedom: $9,000, Chase Sapphire: $5,000, Chase Slate: $5,000, Chase Disney: $4,000, Citi Double Cash: $5,400, Citi AA plat: $5,500, Citi Simplicity: $3,000, Citi Thank you preferred: $8,800, Capital one GM: $2,000, Capital one PlayStation: $3,000, Gamestop: $1,150, Amazon Store: $5,000, Ebay MasterCard: $5,000, American Eagle Storecard: $750, Macy's: $500
EX: 744, TU:750, EQ: 740

Closingracer99 · ‎08-11-2014

http://www.creditcards.com/credit-card-news/6-secrets-joint-credit-1267.php

Here is an article describing differences and stuff for AU and etc

My Cards: Amex BCE: $9,000, Amex Hilton HHonors: $2,000, Amex ED: $12,000, Barclays NFL extra points: $3,000, Bank of America MLB cash rewards: $17,000, BBVA compass NBA Amex triple double rewards: $17,000, Chase Amazon: $1,000, Chase Freedom: $9,000, Chase Sapphire: $5,000, Chase Slate: $5,000, Chase Disney: $4,000, Citi Double Cash: $5,400, Citi AA plat: $5,500, Citi Simplicity: $3,000, Citi Thank you preferred: $8,800, Capital one GM: $2,000, Capital one PlayStation: $3,000, Gamestop: $1,150, Amazon Store: $5,000, Ebay MasterCard: $5,000, American Eagle Storecard: $750, Macy's: $500
EX: 744, TU:750, EQ: 740

CreditDunce · ‎08-11-2014

In your case I would recommend both. Add your spouse to a couple of your longest, clean history CCs. This will help establish a longer credit history for them. However, AU's are not counted in some FICO scoring models.

Therefore, cosign two additional CCs in their own name. In 6 months, they should be able to get a third CC in their own name. Lastly, if you need to purchase a car, get a joint auto loan.

Anonymous · ‎08-11-2014

Appreciate all of the advice. We actually just purchased a car for her but financed it in my name because she didn't have a SSN at the time and also I didn't want her being on the car with no credit history negatively effect the interest rate. Is it worth calling the credit union who I financed through and seeing if they can add her to the loan?

Creditaddict · ‎08-11-2014

1. Joint Credit Cards are rarely available these days so lets start there.

2. For car if you just did it and it's your local credit union, worth a call to see if they would re-do contract but chances are slim since they would basically be cancelling the other loan contract and doing another.

3. Do you have an American Express... that would be my #1 choice for you to add her too.

4. If she doesn't care about building on her own faster then you adding her to 2-3 accounts (amex, Chase, Capital One, Bank of America) come to mind as top picks and then wait 6 months... she will then generate her own Fico (maybe 7) and at that point could apply for her own cards with just about anyone and probalby get approved.

5. if she wants to build her own now she could probably get capital one journey, possibly a citi card and bofa I have heard of some getting issued with no credit. but smaller limits.

6. I would not do joint unless you have discover (they are one of the few that still offer it and it's easy and no credit pull for her... you call and ask for joint application form to be sent, you both fill it out and send back and short time later she will get card and it's joint) but problem with joint is they usually have to be closed to get a joint holder off, can't just request someone be removed like with AU.

and i keep reading that no one cares about AU... that is FALSE... while at one time lots of talk of banks stopping to count AU for scoring and approvals, many still do and most of the systems do too!

Closingracer99 · ‎08-11-2014

@Creditaddict wrote:
1. Joint Credit Cards are rarely available these days so lets start there.
2. For car if you just did it and it's your local credit union, worth a call to see if they would re-do contract but chances are slim since they would basically be cancelling the other loan contract and doing another.
3. Do you have an American Express... that would be my #1 choice for you to add her too.
4. If she doesn't care about building on her own faster then you adding her to 2-3 accounts (amex, Chase, Capital One, Bank of America) come to mind as top picks and then wait 6 months... she will then generate her own Fico (maybe 7) and at that point could apply for her own cards with just about anyone and probalby get approved.
5. if she wants to build her own now she could probably get capital one journey, possibly a citi card and bofa I have heard of some getting issued with no credit. but smaller limits.
6. I would not do joint unless you have discover (they are one of the few that still offer it and it's easy and no credit pull for her... you call and ask for joint application form to be sent, you both fill it out and send back and short time later she will get card and it's joint) but problem with joint is they usually have to be closed to get a joint holder off, can't just request someone be removed like with AU.
and i keep reading that no one cares about AU... that is FALSE... while at one time lots of talk of banks stopping to count AU for scoring and approvals, many still do and most of the systems do too!

US bank offers it for theirs and I believe my parents are joint on a chase Freedom but they had it for like forever ,

I have also said SOME banks don't care about AU like Chase

My Cards: Amex BCE: $9,000, Amex Hilton HHonors: $2,000, Amex ED: $12,000, Barclays NFL extra points: $3,000, Bank of America MLB cash rewards: $17,000, BBVA compass NBA Amex triple double rewards: $17,000, Chase Amazon: $1,000, Chase Freedom: $9,000, Chase Sapphire: $5,000, Chase Slate: $5,000, Chase Disney: $4,000, Citi Double Cash: $5,400, Citi AA plat: $5,500, Citi Simplicity: $3,000, Citi Thank you preferred: $8,800, Capital one GM: $2,000, Capital one PlayStation: $3,000, Gamestop: $1,150, Amazon Store: $5,000, Ebay MasterCard: $5,000, American Eagle Storecard: $750, Macy's: $500
EX: 744, TU:750, EQ: 740

Creditaddict · ‎08-11-2014

@Closingracer99 wrote:
@Creditaddict wrote:
1. Joint Credit Cards are rarely available these days so lets start there.
2. For car if you just did it and it's your local credit union, worth a call to see if they would re-do contract but chances are slim since they would basically be cancelling the other loan contract and doing another.
3. Do you have an American Express... that would be my #1 choice for you to add her too.
4. If she doesn't care about building on her own faster then you adding her to 2-3 accounts (amex, Chase, Capital One, Bank of America) come to mind as top picks and then wait 6 months... she will then generate her own Fico (maybe 7) and at that point could apply for her own cards with just about anyone and probalby get approved.
5. if she wants to build her own now she could probably get capital one journey, possibly a citi card and bofa I have heard of some getting issued with no credit. but smaller limits.
6. I would not do joint unless you have discover (they are one of the few that still offer it and it's easy and no credit pull for her... you call and ask for joint application form to be sent, you both fill it out and send back and short time later she will get card and it's joint) but problem with joint is they usually have to be closed to get a joint holder off, can't just request someone be removed like with AU.
and i keep reading that no one cares about AU... that is FALSE... while at one time lots of talk of banks stopping to count AU for scoring and approvals, many still do and most of the systems do too!
US bank offers it for theirs and I believe my parents are joint on a chase Freedom but they had it for like forever ,

I have also said SOME banks don't care about AU like Chase

Chase did use to but no longer offers joint accounts.