Discussion on Autorized User Accounts

[debtfree09]

I agree about children, my son is 19 years old, works part time and goes to college.  I just put him on as an authorized user on my account.  He pays for what he buys and this way I can monitor how much he spends as I told him that whatever he spends in a billing cycle he has to pay in full. 

[JoeBJay20]

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@smallfry wrote:

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@JoeBJay20 wrote:

Itsmeagain,

I never said illegal, nor implied illegality.  But my point was that we've all taken advantage in some degree.  If the credit report is supposed to be indicative of your payment history, then having legitimate negative items such as late payments removed before their time skews that history to some degree.  But that's the thing about morality, it's all relative.  To some, using Crowne Jewelers as a paid tradeline is immoral, to others, gaining 20 years of someone's credit history that you had no role in shaping by becoming an AU is immoral.  Both skew your true credit history to some degree, so yes it's funny to me when people pick and choose which one of those is wrong.  

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I agree with you for the most part but there is a however. Equifax has taken it upon itself to remove 6 credit card accounts 4 were closed in 2002 2 closed in 2004. So 4 were closed 7 years after closure 2 just 5 years after closure. Due to their error/negligence/worse I have lost a significant portion of my credit/payment history. AAofA from 3 6 down to 2 7 oldest account 9 down to 7. I say if you can get them to remove negatives early have at it. They don't have your best interests at heart. I called and asked them to kindly remove a BK which is 9 years 2 months old. Oh no we can't do that. But they can remove 6 perfectly good tradelines which according to their own website can remain 10 years after closure. FWIW a BK can remain up to 10 but it doesn't state it must remain 10 years. 

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I didn't nor have I ever advocated against any of those strategies.  I know it's a corrupt system set up against the consumer, the playing field will never be tilted in our favor.  The CRA's don't work for us, creditors certainly don't work for us, and as for the regulators who made the rules, well it goes without saying whose side their on.  I wouldn't ever come out and say play by the rules when the rules are set up against you.  My point wasn't that the strategies in themselves were right or wrong, but all questionable in some regard, and that it's a silly argument to say which ones are ok and which ones cross the line. 

[Itsmeagain]

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@debtfree09 wrote:

I agree about children, my son is 19 years old, works part time and goes to college.  I just put him on as an authorized user on my account.  He pays for what he buys and this way I can monitor how much he spends as I told him that whatever he spends in a billing cycle he has to pay in full. 

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We give our children many things.  We give them life. We feed, clothe and give them housing.  We teach them right from wrong.  And when they go into the world we can only hope we have instilled in them the values we have learned ourselves through education and experience.  One of the greatest gifts we can give our children is to teach them fiscal responsibility.  It will guide them throughout their life and provide comfort when times are tough.

Sure the playing field isn't level.  CRA's aren't fair.  CCC's aren't fair. In fact, if you're honest with yourself, very few situations we find ourselves in are "fair".  But all that does not change the fact that the experience you are giving your son will demonstrate to him that he is worthy of YOUR confidence and trust, and regardless of the fact that "Life's Not Fair", that he alone, is responsible for his decisions and the possible ramifications that come with those decisions.

I salute you.

[debtfree09]

Thank you.  I had no one to teach me and I made a mess of my credit. I don't want my children to make my same mistakes.

[Anonymous]

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@smallfry wrote:

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@Anonymous wrote:
I believe the discussion this was under was about people building credit by using Crown Jewelers as a TL. In this case I totally agree...there is little difference I can see in using AU accounts to establish credit and using Crown Jewelery. Neither gives a true indication of the uses ability to use and repay credit.

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You would have to agree that a teenager or a toddler being gifted Daddy or Mommy's 30 year old credit card history is a heck of a lot more abusive than someone with their very own CJ revolving account. 

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No, I wouldn't agree at all that AU accounts are more abusive than someone using a Crown Jewlery account to build credit. If you asked me to go by first impressions and instinct or first thought ....I'd have to say that I find the CJ accounts much more distasteful.  AU accounts at least serve some legitimate purpose in the credit world.

I've never had the use of either myself and struggled for years paying ungodly interest rates to credit card companies in order to build a decent credit report.

I'm also old enough to remember years ago after divorcing my first husband, finding that I was suddenly without any credit of my own. This dispite the fact that it was I who made sure all bills were paid on time, I was the one who handled all the family finances...he got the credit.

Personally I couldn't care less what someone else uses to improve their scores...I'm too busy worrying about my own.

To each his own.

[smallfry]

I wouldn't put a CJ TL on my report but at least a person who uses the account has to make payments on it and the date the TL was opened goes towards average age. A child who is AU on their parent's cards might make payments and show fiscal responsibility and might not. To be fair about things the date added should start the AAofA clock. While life isn't fair and some do without it is a clear abuse for a 15 yo to have an AAofA of 25 years. The FICO masters have to look and laugh at this. 

[Anonymous]

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@smallfry wrote:
I wouldn't put a CJ TL on my report but at least a person who uses the account has to make payments on it and the date the TL was opened goes towards average age. A child who is AU on their parent's cards might make payments and show fiscal responsibility and might not. To be fair about things the date added should start the AAofA clock. While life isn't fair and some do without it is a clear abuse for a 15 yo to have an AAofA of 25 years. The FICO masters have to look and laugh at this. 

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I do agree with you here, on both points.

[debtfree09]

I didn't put my son on my oldest CC, in fact I put him on my newest acct just for that fact.  My oldest account is about 12 years old and he would have been 7.  My newest is about a year and that makes more sense.

[Itsmeagain]

The daughter I mentioned above is 28.  I certainly agree that giving a credit line to a 15 yr. old is absurd.

[n2win]

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@debtfree09 wrote:
I didn't put my son on my oldest CC, in fact I put him on my newest acct just for that fact.  My oldest account is about 12 years old and he would have been 7.  My newest is about a year and that makes more sense.

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This doesn't seem shady in the least to me.

Exactly the right way to help a child learn how credit works...wish I had been in a better position when mine were teenagers (and known anything at all about credit and fico!)

Bet it would be really helpful to have him check his fico scores periodically and see how they reflect util and payment history.

kudos