Question About Authorized Users

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Nucstorm
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Question About Authorized Users

Postby Nucstorm » Thu Dec 19, 2013 2:28 pm

Hello,

First time poster here, feels good. So I am about to help a friend out and put them on my credit card as an authorized user. I decided that I wouldn't issue a card to them so that there will only be one card and that's mine. My question is this: If I put my address as their address and select the "Other" category for Address Type, will this affect anything like their credit report? Does it really matter if they aren't getting a card?

Thanks in advance,

Steven


MemberSince99
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Postby MemberSince99 » Thu Dec 19, 2013 4:50 pm

I've never heard of anything like this. When I put an AU on my Discover and Amex, they issued a card to the user. In the case of Discover, they didn't care about that person's address, but in the case of Amex, they did report that user's card to the bureaus.


So, I have no idea which lender you are using or what their policies are, you might want to call them and ask them about it.

samhradh
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Postby samhradh » Thu Dec 19, 2013 6:30 pm

It's risky to add a friend as an AU. My mother has always taught me to never loan or borrow from a friend. But since you're not actually giving them a card, it sounds like you're just letting them get a free ride on your credit score. No harm done really.

However, I wouldn't change any of the addresses since you're not issuing them a card. Just put the AU's address as your own. I doubt the card issuer will ask for a bill statement with the address on it since they're just an AU. The issuer may report the address to credit unions. I know my credit report has a list of every single address I've lived in over the past five years.
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).

MemberSince99
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Postby MemberSince99 » Thu Dec 19, 2013 6:37 pm

I think you meant to say credit bureaus sam


I do agree it's an awful risk to do that, and it can destroy friendships. I would no longer allow anyone to be an AU on my accounts. Let them build their own credit, like I had to - no one ever made me an AU. The best things in life come to those who earn them honest and fair. Just my own opinion.

samhradh
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Postby samhradh » Thu Dec 19, 2013 6:46 pm

MemberSince99 wrote:I think you meant to say credit bureaus sam


Oops. This gin & tonic is sure tasty.
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).

Obi-dan
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Postby Obi-dan » Fri Dec 20, 2013 12:03 pm

My personal opinion is that when it comes to friends / non-immediate family money and lending are not a good mix. The banks are very good at figuring out why someone should not have credit. That is why I would not ever co-sign, add someone to an account, etc. I the bank doesn't want to lend money, I will trust their analysts too.
Cards:
Chase Sapphire Preferred
Marriott Rewards
Citi Hilton
Barclay Arrival
AMEX BCE (member since 95)
Chase Freedom
Discover It
Wells Fargo Platinum
Barclaycard (Apple)
Local Credit Union Visa (buy local!)


FICO Scores:
TU: 824 (Aug 2014)
Experian: 789 (Aug 2014)
Equifax: 807 (Aug 2014)



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