Benefit of adding a minor as an AU?

Anonymous · ‎03-17-2021

Hey everyone. Can someone school me on the benefit(s) of adding a minor as an AU? I know some CCCs allow minors of a certain age (15, 16, etc) to be added as an AU and in some cases even younger than that. I'm wondering what benefit this presents for the minor in terms of their credit report. Is there any difference credit report wise of adding someone at a young(er) age rather than waiting until they're (say) 18? I've read several articles that say it's a good idea to add minors as AUs outside of them simply learning responsible credit habits at a younger age, but they aren't really clear on the tangible benefits (reports, scores) that we tend to talk about on this forum.

Anonymous · ‎03-17-2021

Add an Amex early since it doesn't back date?

Also CRs have a on file date since X, so an AU added early could create a file with the CRA early on, maybe?

FinStar · ‎03-17-2021

A quick cursory search yielded some prior discussions on the topic:

https://ficoforums.myfico.com/t5/General-Credit-Topics/AU-question/m-p/4911783

https://ficoforums.myfico.com/t5/General-Credit-Topics/Does-being-an-Au-as-a-minor-really-help/m-p/5...

https://ficoforums.myfico.com/t5/General-Credit-Topics/Son-is-AU-on-my-Discover-but-no-credit-record...

Anonymous · ‎03-17-2021

I appreciate the links (and found one of those threads before I posted) but none of them really answer my question. I'm still unclear as to how an AU account for a minor impacts their CR... file/scores. I've also read that you don't even have to provide a SS# in many cases when adding a minor, which I thought was a bit odd if you're looking to have the account land on their CR. Anyone else have any feedback on the subject?

Bradac56 · ‎03-19-2021

Adding a AU is not garonteed just becouse you want it. They are an app just like any other when you add the online data the lender will e-mail you back saying yes/no. If it's yes they will mail a card to the account holders address on file.

At a minimum you have to provide Full Name and Date of Birth so they would not need a SN# to look him/her up (SP) . If there is any issues during the app process they would not issue the card and make you call in to finish with an agent. The account holder is on the hook for everything the AU purchases there is no need for them to go any further than that.

Anonymous · ‎03-19-2021

So is there any real world benefit to the (say) 16 year old in having them added as an AU at that age verses waiting until they're 18 years old for example instead?

Rottweilerlvr · ‎03-20-2021

I've added my daughter to my NFCU cash rewards card with a $500 monthly limit. I did have to provide her social since Navy treated her as "not a member". She's 11. I plan to charge her star coins, clothes, any shopping excursions, etc to it so it shows it's being used and paid off. I haven't pulled her credit report to see if it's reporting or what it's doing exactly since I just did it recently. I think the main benefit is that she will have established credit/history when she "leaves the nest" at 18. With my daughter, she will also have established a banking history/relationship as well. Cap 1 did not ask for her social so I don't see how that would report. Navy will let her get her own checking at 13 and she knows she'll be getting one then.

4sallypat · ‎03-20-2021

I also added my 2 teen kids as AU on my Amex Plat.

Both got free Amex Gold cards with a $500 limit each for emergencies.

Amex did not ask for the SSN when first issued but later they asked for them.

Don't know how it affects their credit score/history as an Amex AU...

Bradac56 · ‎03-20-2021

Credit History is the big thing getting an established report before opening a real CC in is a good start.

I did it with my son. I used my Discover card which has all of my rotating online accounts (cell phones/netflix/Disney/etc) and it auto pays in full every month. He still puts all of his gas on it (still in college).

dragontears · ‎03-20-2021

@Anonymous wrote:
So is there any real world benefit to the (say) 16 year old in having them added as an AU at that age verses waiting until they're 18 years old for example instead?

The real world effect of adding a minor to a card is that when they turn 18 and can legally enter into contracts is that they will have a credit score and an easier time getting some kinds of credit. (Same thing can be done after 18 with a card that backdates for AU).

Whether this is a "benefit" or not depends on the education the child is given. Without them knowing how to manage good credit you could have just made it easier for the child to rack up debt and wreck their credit early (just look at how many rebuilding posts start with "I was young and didn't know..").