Benefit of Credit Card

Red1Blue · ‎02-20-2011

My daughter 19 is AU on my cards. Is there any benefit of getting a card on her own? How does it help her ? I mean she can wait few years and get things on her own. Is there any advantage of her getting a card on her own sooner?

Anonymous · ‎02-20-2011

@Red1Blue wrote:
My daughter 19 is AU on my cards. Is there any benefit of getting a card on her own? How does it help her ? I mean she can wait few years and get things on her own. Is there any advantage of her getting a card on her own sooner?

IMO yes since only AU on your card gives her a score but when they look at her credit manually they can see she is only an AU and not responsible for the debt. She can wait if no need for anything but IMO it is best to establish good credit at her age. You can always offset the new card for her by adding her to another account of yours as an AU with a longer history.

RobertEG · ‎02-20-2011

Absolutely. It will give her an account in her name to start building her own AAoA and date of oldest account.

I have no idea how your current CC handles AU requests, but some creditors wont even do it. There might be a possibility that AU status could be terinated in the future should policies change.

A couple of years ago, FICO even proposed dicontinuing the scoring of AU accounts. They backed away from it, but some sentiment is clearly out there to do away with AU account piggy-backing in FICO scoring. Years ago, AU status used to be sold on the internet to total strangers. It is not a solid practice that is cast in stone.

It is best for her to establish her own credit at an early age.

Red1Blue · ‎02-22-2011

@RobertEG wrote:
Absolutely. It will give her an account in her name to start building her own AAoA and date of oldest account.
I have no idea how your current CC handles AU requests, but some creditors wont even do it. There might be a possibility that AU status could be terinated in the future should policies change.
A couple of years ago, FICO even proposed dicontinuing the scoring of AU accounts. They backed away from it, but some sentiment is clearly out there to do away with AU account piggy-backing in FICO scoring. Years ago, AU status used to be sold on the internet to total strangers. It is not a solid practice that is cast in stone.
It is best for her to establish her own credit at an early age.

Robert, I took your advice. We applied and got approvals for my daughter with Amex Zync and Citi Forward. Waiting for Discover Student Card app status. I'll be making her member of NFCU where she can get a navcheck and another good credit card. Hopefully that should be all she would ever need. Thanks for your advice.

Anonymous · ‎02-23-2011

Does she have a job? A way of paying this

card on her own?

I ask because my niece was turned down.

She is going to St. Anselms and has worked

at K-Mart for a number of years. Is very

responsible.

Red1Blue · ‎02-23-2011

Yes, she has income of $24k / year.