Can authorized users backfire?

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nitsugua23
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Can authorized users backfire?

Postby nitsugua23 » Mon Jul 28, 2014 4:04 pm

Hey credit guru's! Lately I've been thinking about adding someone to a few of my credit accounts as an authorized user, to use "piggybacking" to help out thei credit score so they can get on their feet and become established. Thy have an old hospital bill that went to collections and is now on their report. Now they get denied left and right for credit cards because of that and it'll take them awhile to pay it off because it's a big balance. (Always have insurance if you need to go to the ER because medical bills are no joke! Lol) I've never missed a payment with any of my credit lines and have a 756 Fico score as reported by Discover. I think it would help them out a great deal but I'm hesitant. I'm going to continue to keep my credit portfolio in good shape but I'm just curious if the authorized uses credit report reflects on the primary cardholders report at all? I don't want to add them as an authorized user and it tarnish my credit because their bad report reflects on me in any way. Thanks for the info.
CO (7/2011): $6,250
Discoverit (9/2012): $9,500
AMEX PRG (3/2013)
CSP (7/2014): 10K
CSR (9/2016):10.8K


MemberSince99
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Postby MemberSince99 » Mon Jul 28, 2014 4:31 pm

Their report doesn't reflect on yours. HOWEVER if they run up the card, YOU are responsible for their charges and if they run up more than you can pay, then that will hit you and hurt you.


So directly no their credit doesn't affect you at all, however their behavior with your card can affect you as you are on the hook for what they do.


I would think carefully before doing that. I can't say I've never done it, but I would not be comfortable with it unless I could limit the damage to an amount I could live with (Amex lets you do that - you can set the AU's limit to 200 or 500 if you want to).

nitsugua23
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Location: Kansas City, Kansas

Postby nitsugua23 » Mon Jul 28, 2014 6:12 pm

MemberSince99 wrote:Their report doesn't reflect on yours. HOWEVER if they run up the card, YOU are responsible for their charges and if they run up more than you can pay, then that will hit you and hurt you.


So directly no their credit doesn't affect you at all, however their behavior with your card can affect you as you are on the hook for what they do.


I would think carefully before doing that. I can't say I've never done it, but I would not be comfortable with it unless I could limit the damage to an amount I could live with (Amex lets you do that - you can set the AU's limit to 200 or 500 if you want to).


Thanks! You really are a guru!
CO (7/2011): $6,250
Discoverit (9/2012): $9,500
AMEX PRG (3/2013)
CSP (7/2014): 10K
CSR (9/2016):10.8K

czannah
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Location: Atlanta, GA

Postby czannah » Tue Jul 29, 2014 9:48 am

They should look into getting a secured credit card to build their own credit.
CSP 12K
Credit Union card 10K
Marriott Rewards Platinum 5K
Bank Platinum Visa 15K
Credit Union card 5K
Capital One MC 3.5K
Discover IT 1.9K

rockyrock
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Location: Ventura, CA

Postby rockyrock » Tue Jul 29, 2014 10:23 pm

czannah wrote:They should look into getting a secured credit card to build their own credit.


I agree with this ^^^

It's almost never a good idea for you to add an AU. The only time is proly for your child once they are old enough to be held accountable (by you) and your spouse--only because you proly don't want to fight that battle.

With that said I've had my mom as an AU for about 10 years or so. Not my first choice but it is what it is.

My experiences, YMMV.
American Express (2005): Premier Rewards Gold & Blue Cash Preferred
Chase: Freedom & UA Club USAA: Signature Visa & American Express
Discover it Bank of Hawaii Hawaiian Airlines WEMC Synchrony Sam's MC
Navy FCU Platinum Visa Citi Double Cash & AT&T Access MC

Jeeders
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Postby Jeeders » Thu Aug 07, 2014 2:44 pm

Agreed!!!! Capital One and BOA have great secured cards

czannah wrote:They should look into getting a secured credit card to build their own credit.
Discover It 1.5k
Capital One QuickSilver 1.45k
Marriott Rewards Premier 5k



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