Strategy: AU -> CC Owner; NFCU Secured CC?

[MsMoneypeso]

I have relatives that I want to help them Supersize their FICO scores.

Initially I added them as AU to various CC, and that helped them somewhat. But one of them was specifically dinged for not having a CC in his name. The other one’s only major CC has limit of 3,500. So now I have 4 major CC with 0 balance and high CL that I would like to change them from AU to Owner:

BoA Alaska Visa 49K

Barclays AA Aviator MC 45K

Chase Marriott Visa 42K

Citi AA World Elite MC 51K

I believe all would require a HP.

Would it help significantly to change from AU to CC Owner?

What strategy should I consider:

• Apply for Chase first, due to 5/24, after confirming they’re eligible?
• Apply for the others later the same day?
• Are any of them more picky about approval than the others?

Also, I’m considering making NFCU deposits for a secured CC. But if we get approvals for all of the above, would an NFCU CC of $10K or so really help?

[dragontears]

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@MsMoneypeso wrote:

I have relatives that I want to help them Supersize their FICO scores.

Initially I added them as AU to various CC, and that helped them somewhat. But one of them was specifically dinged for not having a CC in his name. The other one’s only major CC has limit of 3,500. So now I have 4 major CC with 0 balance and high CL that I would like to change them from AU to Owner:

BoA Alaska Visa 49K

Barclays AA Aviator MC 45K

Chase Marriott Visa 42K

Citi AA World Elite MC 51K

I believe all would require a HP.

Would it help significantly to change from AU to CC Owner?

What strategy should I consider:

• Apply for Chase first, due to 5/24, after confirming they’re eligible?
• Apply for the others later the same day?
• Are any of them more picky about approval than the others?

Also, I’m considering making NFCU deposits for a secured CC. But if we get approvals for all of the above, would an NFCU CC of $10K or so really help?

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None of those banks allow joint ownership. 

I am not aware of any them ever transferring ownership of an account outside of the death of the card owner and that is not common. 

Your relatives are going to just apply for cards in their name and wean themselves off of the AU accounts. 

[MsMoneypeso]

I called BoA and they said can add owner, we just have to call in together to get their approval. 

I'll call the other 3 to inquire.

[CreditInspired]

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@MsMoneypeso wrote:

I have relatives that I want to help them Supersize their FICO scores.

Initially I added them as AU to various CC, and that helped them somewhat. But one of them was specifically dinged for not having a CC in his name. The other one’s only major CC has limit of 3,500. So now I have 4 major CC with 0 balance and high CL that I would like to change them from AU to Owner:

BoA Alaska Visa 49K

Barclays AA Aviator MC 45K

Chase Marriott Visa 42K

Citi AA World Elite MC 51K

I believe all would require a HP.

Would it help significantly to change from AU to CC Owner?

What strategy should I consider:

• Apply for Chase first, due to 5/24, after confirming they’re eligible?
• Apply for the others later the same day?
• Are any of them more picky about approval than the others?

Also, I’m considering making NFCU deposits for a secured CC. But if we get approvals for all of the above, would an NFCU CC of $10K or so really help?

---

Do your relatives understand that as co-owners, they would be financially responsible for these accounts? For example, if you die today or tomorrow, they're on the hook; if you lose your job or if you become incapacitated and can't pay, ditto, they're on the hook. At least as an AU, and any of these scenarios happen, they're not responsible for repayment. Of course, the opposite could happen too if they have access to you cards as an AU. They could run up charges and you alone would be responsible for payment. 

Also, be very weary of adding several AUs to CC accounts. Some CCCs can be finicky, even though they market to add AUs. You don't want to be in a situation where your CL is decreased or the CC is closed. I'm not saying this would happen, but it's something to think about. 

And a final question. Is any of the above scenarios worth helping a relative supersize his/her credit  score? Something to think about. 

Just my 2cents. 

[MsMoneypeso]

Thank you for your concern about risk. However, we have implicit trust in each other, and we're firmly committed to AZEO. 

So does anyone have advice on the strategy to accomplish the conversion AU -> CC Owner, which I believe will help their scores?

[FireMedic1]

@MsMoneypeso 

"Initially I added them as AU to various CC, and that helped them somewhat. But one of them was specifically dinged for not having a CC in his name. The other one’s only major CC has limit of 3,500."

What cards have you placed them as AU already? What age range are you talking about with the relatives.

FICO doesnt care how high limits are. Its how you handle the credit in reporting. They have to start off like anyone else. Get a secured card. Or even start off with a Cap1 card and start the build in their names. Especially the one relative who had no revolver in their name. As time goes on. Go for better cards. Once the cards age. Bigger and better things will come in time.

Theres no quick fix or "supersize" as a newb starting out of the gate. It takes time and patience. Or a couple years of building and getting more credit in ones name. Age has to build, AAoA's has to grow and so on. Theres nothing wrong with a 3500 CL being new the the credit world. Once it starts to grow for both of them. Then you have to look at installment loans as in SSL's to finish off the credit mix. As we say here. Its a marathon and not a race. Save the owner HP's for their own HP credit apps. Good Luck.

[RobynJ]

@MsMoneypeso 

Navy FCU rewards secured card I just got and the max SCL is $1000 I was just told. 

[DONZI]

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@MsMoneypeso wrote:

I have relatives that I want to help them Supersize their FICO scores.

Initially I added them as AU to various CC, and that helped them somewhat. But one of them was specifically dinged for not having a CC in his name. The other one’s only major CC has limit of 3,500.

It appears that you're talking about 2 relatives?

AU per relative?

What are their scores?

Dinged?  ..HP = non-approval, score drop?

What is the motivating reason to supersize their score?

..you should be aware that score is only a distillation of available report details -- the foot in the door, the rest follows to be evaluated.

The one without a card in their name, there are other lenders that perhaps will approve them. Amex and Discover are generally kind with young credit profiles. The other can apply for a credit line increase maybe.

You can't really jumpstart things much more since the most important credit data is specific to the individual it's pertinent to.. Hence the reason AU and other methods aren't quite regarded as 1:1 like their own personal contract and card.

So now I have 4 major CC with 0 balance and high CL that I would like to change them from AU to Owner:

BoA Alaska Visa 49K

Barclays AA Aviator MC 45K

Chase Marriott Visa 42K

Citi AA World Elite MC 51K

I believe all would require a HP.

Would it help significantly to change from AU to CC Owner?

What strategy should I consider:

• Apply for Chase first, due to 5/24, after confirming they’re eligible?
• Apply for the others later the same day?
• Are any of them more picky about approval than the others?

Also, I’m considering making NFCU deposits for a secured CC. But if we get approvals for all of the above, would an NFCU CC of $10K or so really help?

You could maybe arrange to do a loan of sorts at the bank for them. Gift each the $10K to put into a CD in their name. Then with your relationship with the bank, persuade them to create a revolving line of credit for your relatives secured by their CDs. I did such a thing at my bank roughly a year ago. Reports as a revolving line or credit, posts "OK" on all 3 CRA each month with 0 activity since creation.

With regard to the amount of credit, it's perhaps of some value in the future, but it seems as if both are satisfied with the AU account limits. If they use the credit you've extended to them, what they spend and pay normally plus a little extra is suitable CL for them to have good scores for their own personal card(s). If you want them to have the high limits for emergency then your AU accounts will do that.

If they are young and/or not much interested in credit, scores and reports -- in the future they could unravel your efforts quickly by accident. For good measure maybe provide a simple cause and effect type flowchart about credit cards -- applications, payments, etc.

The optimal way to help perhaps is to let the AU stay and help them get 1-2 cards or secured loans and let it do it's thing.