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helping an adult child get started w/ credit

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Senior Contributor

helping an adult child get started w/ credit

We have a college-aged son soon to head out of the country for an exchange semester. He's very responsible and insanely frugal -- easily moreso than I was at his age -- and I'd like him to have a card for emergencies.  Still, because of the very real dangers of theft & fraud, I'm unwilling to make him an authorized user on my account, as one can't place a ceiling on the spend of an authorized user.

 

So ... is the best way forward to be a guarantor and, if so, any things to be wary of?

 

Insights welcome.

Cards: ample. Income: adequate. Credit: abundant.
INQs: excessive. Last INQ: recent.
Oldest account: adult. Youngest account:
Infant.
AAoA: closer to optimal than horrible.
All scores above 815.

On the wagon.


Message 1 of 15
14 REPLIES 14
Regular Contributor

Re: helping an adult child get started w/ credit


@expatCanuck wrote:

I'm unwilling to make him an authorized user on my account, as one can't place a ceiling on the spend of an authorized user.

 

 


Hey expatCanuck,
Yesterday, I was online looking at my AMEX BCE account. While using the chat feature to IM with a rep, about my statement cut dates, she asked me if I wanted to add an additional card holder.  I declined as I needed to know exactly how that would impact my credit.

 

The rep, pushing for the upsell said that it wouldn't be able to make a negative impact then she did mention that I could even put a $200 limit on that additional users card. I still declined, but found this last claim interesting. 

 

Perhaps it is something you can look into.

 


Amex Plat | Amex EDP $24,000 | Citi BestBuy Visa $11,000 | Chase Freedom $7500 | Discover IT $7500 | Amex BCE $5,000 | Merrick Bank Visa $2000 | Alliant SSL
Starting Score: Fico 8: EQ 721 TU 742 EX 736
Current Score: Fico 8: EQ 746 TU 764 EX 756
Goal Score: Fico 8: EQ 750+ TU 760 EX 750+


Take the myFICO Fitness Challenge
Message 2 of 15
Senior Contributor

Re: helping an adult child get started w/ credit

Thanks.  Based on this 18-month-old article, it looks like Amex is the the only issuer offering such control:

https://www.nerdwallet.com/blog/credit-cards/credit-card-spending-limit-for-authorized-users/

 

Still, I'm comfortable being a guarantor for a non-annual-fee card with better acceptability (i.e. - Visa or MC network) without foreign transaction fees.  I've got an 18-year history with BoA -- I'm hoping that I can work something out with their Travel Rewards product.

Cards: ample. Income: adequate. Credit: abundant.
INQs: excessive. Last INQ: recent.
Oldest account: adult. Youngest account:
Infant.
AAoA: closer to optimal than horrible.
All scores above 815.

On the wagon.


Message 3 of 15
Regular Contributor

Re: helping an adult child get started w/ credit


@expatCanuck wrote:

Thanks.  Based on this 18-month-old article, it looks like Amex is the the only issuer offering such control:

https://www.nerdwallet.com/blog/credit-cards/credit-card-spending-limit-for-authorized-users/


Confirmed!...Nice! 

The rep was selling me on: additional card gets more reward points. I will look at this offer more seriously now.

Do you have an AMEX? If so, will you give the kid a shot this way or continue to help find a separate card?


Amex Plat | Amex EDP $24,000 | Citi BestBuy Visa $11,000 | Chase Freedom $7500 | Discover IT $7500 | Amex BCE $5,000 | Merrick Bank Visa $2000 | Alliant SSL
Starting Score: Fico 8: EQ 721 TU 742 EX 736
Current Score: Fico 8: EQ 746 TU 764 EX 756
Goal Score: Fico 8: EQ 750+ TU 760 EX 750+


Take the myFICO Fitness Challenge
Message 4 of 15
Senior Contributor

Re: helping an adult child get started w/ credit

Possibly, but the Visa network would be my first choice, given it's wider global acceptance.  I may also be able to work out something with our 'family' bank, which is in the top 10 nationally.

 

[edit] Actually, the more I think about it, the easier the mechanics are -- I CLD my lowest line (an MC which has no foreign transaction fee) to an amount we're comfortable with, and make my son an authorized user. 

 

I've got 6 other lines providing more credit than I can use; when he returns, my scores should all be above 750 -- enough to support a CLI request, should I be so inclined.  Right now, as my sig shows, my EX score can't tolerate another inquiry.

Cards: ample. Income: adequate. Credit: abundant.
INQs: excessive. Last INQ: recent.
Oldest account: adult. Youngest account:
Infant.
AAoA: closer to optimal than horrible.
All scores above 815.

On the wagon.


Message 5 of 15
Regular Contributor

Re: helping an adult child get started w/ credit

Unless NFCU have changed their policy, that offer is good with them as well.

Message 6 of 15
Senior Contributor

Re: helping an adult child get started w/ credit


@tricie17 wrote:

Unless NFCU have changed their policy, that offer is good with them as well.


Thanks.  Unfortunately, not eligible for NFCU. (Could become eligbile for PenFed, tho', via Voices for America.)

Cards: ample. Income: adequate. Credit: abundant.
INQs: excessive. Last INQ: recent.
Oldest account: adult. Youngest account:
Infant.
AAoA: closer to optimal than horrible.
All scores above 815.

On the wagon.


Message 7 of 15
Valued Contributor

Re: helping an adult child get started w/ credit

Make him an AU but don't give him the card. Let it update to the CRA's then he should be able to apply for his own cards.


TU FICO 8: 767 (5/19) — Ex FICO 8: 764 (5/19) — Opinions are my own and not the views of my employer
Message 8 of 15
Senior Contributor

Re: helping an adult child get started w/ credit

Excellent point, assuming that the issuer reports an AU to the CRAs.

 

 

Cards: ample. Income: adequate. Credit: abundant.
INQs: excessive. Last INQ: recent.
Oldest account: adult. Youngest account:
Infant.
AAoA: closer to optimal than horrible.
All scores above 815.

On the wagon.


Message 9 of 15
Established Contributor

Re: helping an adult child get started w/ credit

Prepaid international travel card.  No exchange fees. Loaded/reloaded at the balance you want.  Cancelable if lost/stolen. reasonable emergency cash fees for atm usage. And it looks like Visa offers them.

 

https://usa.visa.com/pay-with-visa/cards/prepaid-cards/travel-money-card.html

Message 10 of 15