Adding an additional user who is brand new to credit no file

[Anonymous]

What impact if any will this have on my scores?

My nephew is just starting out and I want him to have a healthy start to his credit journey. Will adding him to my cards have any impact on my scores as long as the cards are in good standing?

[CGeorge]

Yes, having him on a card as an authorized user - would help him - IF - the card to which he is added reports authorized users to the credit agencies.

Not all cards report to the agencies for authorized users. So be sure to check if the issuer of the card that you want to add him to - actually reports authorized users.

It seems like I read here in the forums that all American Express cards report authorized users.

But you will need to check...

[Anonymous]

Thank you @CGeorge, that is helpful and I was under the impression that it would help his credit which is why I want to do it. But the big question is how it will effect mine?

[CGeorge]

It should have no effect on yours at all - because you still maintain 100% responsibility for the account.

Just don't give him the physical card (or the account number) - just let him be reported as an authorized user - and your payments will be reported on his reports the same as yours are for that card.

No worries to you.

[Anonymous]

@CGeorge,

Thank you. That is exactly my plan and also the answer I was looking for! I am just going to use the card in his name and watch him start off to a healthy financial future!

[CGeorge]

That will work - good luck!

[Anonymous]

I'd add him to any cards that are (a) very old and (b) cards that you can keep at a zero balance and (c) cards that have no late payments that have ever been reported on them.

If all three things are true, adding the card will be a big help to him.  If one or more of those things is not true, it may hurt him more than it helps.

[SouthJamaica]

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@Anonymous wrote:

@CGeorge,

Thank you. That is exactly my plan and also the answer I was looking for! I am just going to use the card in his name and watch him start off to a healthy financial future!

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Is your nephew on board with this plan?

[Anonymous]

Amex does not back date on AU accounts, I would use another that does.

[Anonymous]

Thank you @CreditGuyinDixie!

All of the above is true! I think I had the highest util this past month in a year at 9%, but usually report at 1% using the AZEO method. I alternate mostly between two cards...