Is it bad for an additional user to max out their spending limit?

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KingVicc
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Is it bad for an additional user to max out their spending limit?

Postby KingVicc » Fri Jul 27, 2012 3:50 pm

Hi,

I have a Blue by AMEX with a credit limit of $3000, and just added an additional user to my card. I've set a spending limit of $200 on their card. If they hit it, will it be reflected poorly on my credit, or would that not count since, I'm not hitting the $3000 overall credit card max. Just curious thanks so much!

P.S. Just in case I didn't phrase it correctly here's an example. They hit their $200 limit and I use $700. My monthly statement would be $900. But since they hit their limit would it be bad for our credit scores?
[size=80]Wells Fargo Platinum Card (2010)
American Express Blue Card (2011)
Barclay US Card (2011)
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MemberSince99
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Postby MemberSince99 » Fri Jul 27, 2012 4:27 pm

KingVicc wrote:Hi,

I have a Blue by AMEX with a credit limit of $3000, and just added an additional user to my card. I've set a spending limit of $200 on their card. If they hit it, will it be reflected poorly on my credit, or would that not count since, I'm not hitting the $3000 overall credit card max. Just curious thanks so much!

P.S. Just in case I didn't phrase it correctly here's an example. They hit their $200 limit and I use $700. My monthly statement would be $900. But since they hit their limit would it be bad for our credit scores?


No, as far as your credit score is concerned all that matters is what percent of your limit you are using. Your limit is 3000 and you are using 900 of that and that is all that your report will show.

So you are good. In terms of your authorized user, I don't know. I did that but it was on a charge that didn't report a limit. I don't know whether Amex reports their limit as 3k also or the 200 you set for them as I have no experience with this. But you are good in any case.

KingVicc
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Posts: 28
Joined: Mon Jul 16, 2012 7:45 pm
Location: Los Angeles, CA

Postby KingVicc » Wed Aug 01, 2012 3:10 am

Yeah, I try to usually keep my credit utilization percentage below 30% as much as possible. I just wanted to make sure, because if it did affect it, then I would definitely increase the limit... but no one would really benefit from such thing so, I hope it does mean that I'm good. Thanks!
[size=80]Wells Fargo Platinum Card (2010)
American Express Blue Card (2011)
Barclay US Card (2011)
[/size]



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