Adding An AU

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Vandalized2
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Adding An AU

Postby Vandalized2 » Thu Nov 07, 2013 1:33 pm

My youngest sister just turned 18 and was thinking about starting her first credit line, but she has no job because she is a full time student. So i told her not to apply for a card until she gets a consistent job.

If i added her to my AMEX BCE as an AU how would that effect her credit report and subsequently her credit score.

Would you guys suggest doing that to get her started on credit? Any advice would be helpful.


cashback
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Postby cashback » Thu Nov 07, 2013 1:45 pm

If they take her social, it should show up on her report. If they don't require it, it wont. I have 115K in total credit and my wife is AU on all of them. About 60K of it shows on her report.

Whether or not creditors can tell that they are just AU's, I dont know.
Credit Cards
Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781

FutureBillionaire
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Postby FutureBillionaire » Thu Nov 07, 2013 5:09 pm

cashback wrote:If they take her social, it should show up on her report. If they don't require it, it wont. I have 115K in total credit and my wife is AU on all of them. About 60K of it shows on her report.

Whether or not creditors can tell that they are just AU's, I dont know.


I need to research this, as well as how card with AU earn rewards. Is it a separate set of caps?
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

MemberSince99
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Postby MemberSince99 » Thu Nov 07, 2013 7:28 pm

Cash is right. I gave them the SS# of my AU and it showed up on her credit.

I think it's the same cap, it's just like it's the same overall credit limit, though you can assign a set limit to your AU (I gave mine 500 to work with, to limit my potential liability). That is one awesome AU feature that Discover does not have - when I asked if I could give my AU a limit, they said the only way is the cut the credit limit of the card.

Just be careful the AU doesn't spend more than you do consistently I've heard that can trigger FR.

flan
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Postby flan » Thu Nov 07, 2013 11:14 pm

cashback wrote:
Whether or not creditors can tell that they are just AU's, I dont know.


Yes, they can, if the creditor reports it properly. The data format that's essentially universally used by creditors and the credit bureaus has a field for type of relationship the individual has to the account. There's a code for individual, one for joint, one co-signer, one for primary with co-signer, and one for AU. (Maybe a couple others; probably one for 'he's dead'.) The creditor can do this either by attaching an extension segment to the the record for the main creditor, or by making a separate record for the AU. (They can do both, too, and put the primary account holder on the associated consumer field of the AU. I don't think anyone would do that on purpose.) I don't know what AMEX is doing these days. They used to do it correctly, except they'd sometimes report a code that had ambiguous meaning (which isn't in the current data specification). I bet they largely still do the correct reporting.

Even if the creditor has no other information except a name, they can report it as an associated consumer at the primary address. That may, or may not, be enough to get the account on someone's credit report. (It should be, if the name is correct, and they have other accounts at that address.)

Some credit issuers entirely discount AU accounts, others don't.

Also the amex limit on the AU is per billing cycle, not calculated like a credit limit. (They may take payments made by the AU into account; you'd have to ask about that.)

Vandalized2
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Postby Vandalized2 » Fri Nov 08, 2013 1:03 am

Thanks guys I appreciate it , still in discussions with her we will see what happens.

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jumbo
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Postby jumbo » Fri Nov 08, 2013 9:51 am

MemberSince99 wrote:Just be careful the AU doesn't spend more than you do consistently I've heard that can trigger FR.

I am not sure if this is true. I have an AU and he has been spending more than me for over a year now (on my Discover More and Citi Platinum Select). In fact I don't usually use those cards at all, so my all utilization is from my AU.
So far I have not seen any adverse effect.
BofA Cash Rewards | CapitalOne QuickSilver | Discover More
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MemberSince99
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Postby MemberSince99 » Fri Nov 08, 2013 10:45 am

jumbo wrote:I am not sure if this is true. I have an AU and he has been spending more than me for over a year now (on my Discover More and Citi Platinum Select). In fact I don't usually use those cards at all, so my all utilization is from my AU.
So far I have not seen any adverse effect.


I'm talking about Amex, sorry should have been more clear. With them that is one of the things that can trigger FR. Others may not mind it.

GoCreditGo!
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Postby GoCreditGo! » Sat Nov 09, 2013 9:43 am

I was thinking about doing this for my sister as well, just to boost her along. I did make mention to her that it is important to get an AMEX. I stopped short of calling it a "life event" :)

SClay
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Postby SClay » Sat Nov 09, 2013 7:20 pm

cashback wrote:If they take her social, it should show up on her report. If they don't require it, it wont.


American Express does require SSN. Other lenders do report authorized users without the SSN, usually as long as the address matches.
Capital One Secured AU | $1851 | 10/2013
Capital One Journey | $1000 | 03/03/2016
American Express Delta Gold | Denied | 03/13/2016
Citi Bank Double Cash | $1000 | 03/13/2016
Chase Amazon Visa | Pending | 03/13/2016



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