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Would you add your sibling as an authorized user?

Frequent Contributor

Re: Would you add your sibling as an authorized user?


Pookubbq wrote:

Revelate wrote:

Pookubbq wrote:

Hey guys, Im currently 23, and my sister is 17. She is going to college next year, and she wanted me to add her as an authorized user on my card.  I have serveral cards with a credit limit totaling 21k ish. Should I add her, or should she apply for credit herself next year? 

Thoughts? Comments?

Thanks!


Depends what she wants the card for and frankly how much you trust her.

 

If she just wants it for a credit boost and not receive the card then I'd probably do it but my sibling is even more conceintious about paying back debts to people than I am.

 

If she wants the card for spending, well that's a much different deal.  Why isn't she asking your parents in this case?


Thats the thing, shes does'nt exactly know how to handle money that well.

But she needs to start somewhere!

My parents don't live in the US anymore, they gave up their residency and moved back to Taiwan. Therefore, my parents dont have any open cards.

I am currently taking care of her, and when she asked me to add her on my cc, I said we'll see. Wasnt sure what to do. 


RUN, RUN FAR AWAY!

No, I am only joking but as others have said, do not give her the card! But adding her as an AU and not giving to her would do the exact same thing to her score. 

American Express has a nice option for AU's (just in case you have an Amex) where you can set credit limits for AU's.

You could like set her up with a $200 limit or something which is much easier to manage over giving her a card with a $5k limit.

And if you have doubt, ask for a security deposit Smiley Wink


FICO 08 EQ: 747 // TU: 761 // EX: 759 // Goal: All 760+ // Age 23.
Building credit since 12/2013 // Gardening since 04/2017.
Hover over my cards to view limits.
Message 11 of 30
Regular Contributor

Re: Would you add your sibling as an authorized user?


Pookubbq wrote:

Hey guys, Im currently 23, and my sister is 17. She is going to college next year, and she wanted me to add her as an authorized user on my card.  I have serveral cards with a credit limit totaling 21k ish. Should I add her, or should she apply for credit herself next year? 

Thoughts? Comments?

Thanks!


I have 3 cards

  • Chase Freedom - $1400 CL
  • Hilton AMEX - $6000 CL
  • Citi Double Cash - $7000 CL

 

I am 21 and I have 2 sisters.  My oldest sister who is 28 is on my Chase Freedom however; I have her card in my sock drawer.  My other sister who is 25 is on all 3 of my cards however; I have her Chase Freedom and Hilton AMEX in my sock drawer -  I let her keep the Citi card for emergencies or if she was buying a present that her and I was splitting the cost.

 

-------

 

How long has your oldest card been open for?  If you have any cards that you have ever missed a payment on, do NOT put her on that account because that will hurt her credit.  Other than that, I would say put her on all of the cards at once, and keep them hidden from her for a few months to allow her AAOA (average age of accounts) increase and then maybe a few months down the road, give her just one of the cards (Mastercard or Visa) for her to keep for emergencies only.

Discover it $14.5k opened 3/86, Best Buy Mastercard $8k opened 4/08, Fidelity Visa (Elan) $12k opened 4/09, Chase Freedom $25k opened 12/14, AMEX Hilton (no AF) $18.1k opened 1/15, Citi Double Cash $13.2k opened 08/15, Discover it $10k opened 3/16, Chase IHG $25k opened 7/16, Blue Cash Everyday $18.1k opened 8/17

AVG UTL: 1-2%, 100% on-time payments

Vantage Scores: TU 816 & EQ 793
Message 12 of 30
Valued Contributor

Re: Would you add your sibling as an authorized user?

I put my brother as an AU on two of my cards but did not give him the cards (he's 20, uses cash). He's on my card with $7K and $10K. He can't request cards either, he knows that and agrees. Just want to help build his scores up.

Then I helped him apply for his OWN card, to my surprise, he got a $1K limit. My parents (well, my mom) freaked out about a CC but he is using it for gas only. Small amounts to pay and report each month. He can afford to pay back the $1K so it's a start.

back to a seedling 3/17/18
Message 13 of 30
Frequent Contributor

Re: Would you add your sibling as an authorized user?

I guess it fundamentally depends on your relationship with your sister--I'd add my sister as an AU, but then my sister isn't your sister and vice versa. Either way, some really good options have been already suggested: AU on a card where you can set the limit for her and she how she does and maybe increase the limit for good usage, I feel like there's a great teaching opportunity there as it somewhat emulates what will happen when she does get her own cards. Or, if you just want to give her credit rating a boost and not trust her with any money, just add her as an AU and don't give her the physical card (heck some banks have the option where you can elect not to issue a physical card to an AU). I feel like you'd come off as a good sibiling in either of these cases.

Message 14 of 30
Valued Member

Re: Would you add your sibling as an authorized user?

Yes, only to help her get a head start in building her credit.

 

 

No, if she wants to use it.

Taking Myfico fitness Challenge, in garden 10/2015 ~ 4-6 inquiries ~ 4% utilization.
Starting Score: 500+ 1/2015 ~ Current: TU764/EQ705/EX724 ~ Goal: 800+
$4500................$1000................$3800................$4500.
Message 15 of 30
Regular Contributor

Re: Would you add your sibling as an authorized user?

I'm replying to this before reading any of the other posts, so take it for whatever it's worth: 

 

No! No! No! And....oh yeah, Hell No!

 

Nevermind that your parents moved back to Taiwan, and didn't take their underaged child with them, leaving one young daughter to raise said minor. This is a great responsibility that now falls to you. Tough love and all.

 

The first and foremost thing you now need to do is get your sister some personal financial, credit, investment education.NOT, AU her on your (I'm assuming) hard-earned credit. Making her AU won't educate her. You'll just get the bills after the fact, and of course, you dare not pay any and all of her charges. Even without the card, she can use the numbers online, etc. As you well know, this is an age where she will be under intense peer pressure to "keep up with the Jones", flashing their own AU cards. Not cool to put her in that position without benefit of your credit expereince.

 

Instead, get her a kiddie checking and savings account. Lots of banks have them for high school students. You may have to be primary owner, but the second, the minute, the moement she turns 18, get your name off of it and make her primary. Trust me, I know whereof I speak.

 

Next have the banker who opens the account give her "the talk". Encourage her (the banker) not to pull any punches; rather than "selling the bank", give her the hard cold facts of monehy life. You know the drill. NSFcharges, statement dates, Chex Systems, ATM charges and money bank fees...

 

Show her how to set up a "spending plan", not just a budget and savings plan. Many an adult got into trouble because they were taught to save every birthday cash gift, but never taught how to plan for day-to-day expenditures, and short/long-term expenses, or big-ticket items.

 

Now, if she doesn't have one already, encourage her to find a way to earn part-time money to fund her accounts...babysitting, dog walking, McD's, crafts, whatever. Each month you sit down with her and go over how to balance, how to check her statements for suscpicious activity and how to dispute if necessary. 

 

Teach her not to spend everything in her account to within an inch of its life. Good practice for a future credit card holder. 

 

You'll get to be hands-on with ushering her into the world of credit and money, without the potential "burn" to your FICO and credit files. She'll get to show you you MAY be able to handle being an AU responsibly if you still choose to do that. But, remember, just making her AU on your credit cards teaches her zilch. You still get the bill, while she gets to spend. And, also you can always add her as AU to your cards the day she graduates from college and gets her first full-time job and it'll look the same as if you added her today.

 

FYI, most kids aren't thinking any further about what AU means than, "I get a shiny new credit card with my name on it that I can use for daily spending, CASH ADVANCES FROM THE ATM...(yee GODS!!!) and emergencies....like that ski trip my new college buddies are going on that weekend and, well I've got a credit card, and I'm sure my big sister would want me to fit in, and take a break from my studies." While you're thinking, "she'll pay for 3 science books and some school supplies and will promptly send me the money for it before my statement even cuts!" Ha!

 

I did see several post saying, "sure, it'll help her for when she gets her own cards, etc." Even if you AU her 30 years from now, if will still report on her card as if she was AU from the first day you got the card!!! That's the point of AAOA.

 

Don't help your lil sis con herself out of her future. And don't mess yours over on a 17 year old guilt-tripping you. Grow up...both of you. 

 

Church out.

21 Months into gardening for 2 years until January 2019 when the last HP drops and BK7 is 5 yrs post.
Message 16 of 30
Established Contributor

Re: Would you add your sibling as an authorized user?

If your sister has already displayed an inability to manage her finances, I would not even consider adding her as an AU. All you are doing at that point is feeding fuel to the fire.

 

Consider that adding your credit history to hers will essentially make her look more responsible than her behavior apparently has. It will make her look more worthy of credit than she may apparently be. Neither of those are good things, and they could essentially lead more credit to be granted to her than you'd really want. Let her have to fight through getting a secured card, if necessary, so that her liability is limited. Once she displays good money management, more credit will be granted. But you don't want to artificially speed up that process given the circumstances.

Replanted a seedling 5/9/2015.
Message 17 of 30
Established Member

Re: Would you add your sibling as an authorized user?

If you do this you should treat it like its money you are giving to her.  

 

If I were to ever do something like that it would be for a card that had like a $300 limit and that only you can request a CLI


Pookubbq wrote:

Hey guys, Im currently 23, and my sister is 17. She is going to college next year, and she wanted me to add her as an authorized user on my card.  I have serveral cards with a credit limit totaling 21k ish. Should I add her, or should she apply for credit herself next year? 

Thoughts? Comments?

Thanks!


 

Message 18 of 30
Valued Member

Re: Would you add your sibling as an authorized user?

Very well said.He can put her but not give her the card,I did this with my little bro and he is in another state but I have the card with me.

drash
Message 19 of 30
Established Contributor

Re: Would you add your sibling as an authorized user?

No. This is going to end badly for you both. She doesn't need your profile as a boost, you don't have a very old one either. She can easily get a secured cc for building credit, try Bank of America like I did. Do not put her on your card. In a few years you'll want a house or a car, and you can't get it because she racked up your credit bill on gas station food. I say that because kids don't have real emergencies. 

EQ 777 | TU 777 | EX 780


AMEX EDP 32k | AMEX BCP 8.5k | CSP 13.5k | FRDM 14k | DIT 21k | Citi DC 14k | Penfed Promise 5k | Penfed PLOC 5k | BoA 2.5k | Alliant 5yr Secured Loan $500 | 100k in available credit
Message 20 of 30