AU To Credit Report
- Thread starter DL172
- Start date
Interesting question. No answers 
. I was searching for existing info on my needs before I created a new post. This is at least in the general area, so I'll try replying before I get more desperate.
My use of credit and thus credit score has always bee stellar. My son did not inherit this gene. He fell into the oh-so-easy credit card trap that entices people who should have cards. He's been sent to collections twice, but that's all settled and he is rebuilding his credit history. Slowly. Thought I'd do a little research and try to help, all without risking my own score.
Adding him as an AU is recommended my a couple of reputable sites. I'm assuming he doesn't ever really have to TOUCH the AU card to have it improve his score. Perhaps I should have made that a question; please let me know if I'm wrong. Even then, I can keep the AU card and use it myself where I can. I trust him, but only to a point.
Specifically, the questions: Does this actually work? Is there a card that is best for this purpose? Is there any risk that my score may be negatively affected (ignoring him being irresponsible in the future)? Does the AU card have to actually be used, or does just the fact that it exists help? Finally, to get back around to the OP's post ... if it works, how long does it typically take to see a reaction?
Thanks in advance.
. I was searching for existing info on my needs before I created a new post. This is at least in the general area, so I'll try replying before I get more desperate.My use of credit and thus credit score has always bee stellar. My son did not inherit this gene. He fell into the oh-so-easy credit card trap that entices people who should have cards. He's been sent to collections twice, but that's all settled and he is rebuilding his credit history. Slowly. Thought I'd do a little research and try to help, all without risking my own score.
Adding him as an AU is recommended my a couple of reputable sites. I'm assuming he doesn't ever really have to TOUCH the AU card to have it improve his score. Perhaps I should have made that a question; please let me know if I'm wrong. Even then, I can keep the AU card and use it myself where I can. I trust him, but only to a point
.Specifically, the questions: Does this actually work? Is there a card that is best for this purpose? Is there any risk that my score may be negatively affected (ignoring him being irresponsible in the future)? Does the AU card have to actually be used, or does just the fact that it exists help? Finally, to get back around to the OP's post ... if it works, how long does it typically take to see a reaction?
Thanks in advance.
notwealthy
Level 2 Member
Not an expert, but I'll try to bite.
To my understanding, adding your son as an AU on your card just means that on the next credit reporting cycle, that particular account will also show up on his credit report (just like it does on yours). So whatever the current standing of your account is (10k CL, 2% util, 5 years acct age, whatever) it will appear on your son's report in the same fashion.
So really, if you wanted to increase the efficacy of the "boost" to him, you should add him to an account of yours with a high credit limit, something with low utilization each month, that also has a long history/age. I don't think he needs to physically use it to see the impact (and actually, it might be wiser if you just didn't hand him the card given his track-record
The only way this could negatively impact YOUR score is if he started racking up charges on your account (via the AU card), and you didn't pay it on time (carrying a balance). You're still 100% responsible for charges made by you or the AU on that account.
To my understanding, adding your son as an AU on your card just means that on the next credit reporting cycle, that particular account will also show up on his credit report (just like it does on yours). So whatever the current standing of your account is (10k CL, 2% util, 5 years acct age, whatever) it will appear on your son's report in the same fashion.
So really, if you wanted to increase the efficacy of the "boost" to him, you should add him to an account of yours with a high credit limit, something with low utilization each month, that also has a long history/age. I don't think he needs to physically use it to see the impact (and actually, it might be wiser if you just didn't hand him the card given his track-record
The only way this could negatively impact YOUR score is if he started racking up charges on your account (via the AU card), and you didn't pay it on time (carrying a balance). You're still 100% responsible for charges made by you or the AU on that account.
Thanks. That agrees with the way I am understanding it. I'll probably give it a whirl this weekend and see what happens. I'll report back with the results, in case it helps someone else in the future.
I have 2 Chase cards totaling 50k CL. My CSP is used, but usually lightly and the other rarely. I'll reread the nerdwallet post I saw on how various banks report on AUs to make sure this lines up. I have other cards that might work, but the nature of this game says many of them are not very old, and/or won't be around much longer. So there is some strategy in picking the right one(s).
notwealthy
Level 2 Member
Yeah, I'm a bit skeptical about Chase cards in particular because I know the way they ask for AUs doesn't require much info other than a name.
Definitely report back on your results if you DO try it with a Chase card. I'm curious, myself. I heard that they do report AUs to all 3 bureaus, but it just surprises me that they can accomplish that without SSN or anything...
Definitely report back on your results if you DO try it with a Chase card. I'm curious, myself. I heard that they do report AUs to all 3 bureaus, but it just surprises me that they can accomplish that without SSN or anything...
You're right. I don't think they ask for an SSN, which would seem to be a prerequisite for reporting. I'll let you know.
I thought it could be younger than that, and in fact, adding my son to my Discover card just now, the page insisted that the authorized user be 15 years or older.
Some minor progress. As it turns out, I didn't have a ton of options as far as long-standing cards go.
My original, classic Discover card is circa 2000. I had lowered the CL to 500, as I want to keep it but don't use it (trading the CL for my MilesIt card); my wife's card is even older and we use that for any bonuses and typically don't go into card #2. So, as reported above, I added my son here as an AU. This won't add anything realistic to his total CL, but the age of the card should help.
Note that Discover asked for his SSN and a home address, while stating that the card will be sent to ME. Perfect.
My oldest cards with a decent CL are with Chase. These are nowhere near as old ... I'm betting 5-6 years old max. Still will lengthen his overall history, and the ~50k CL should help.
I may have screwed up a little here. The 2 cards I added him to total 50k CL, right? Nervous a bit, I had them sent to my home address; there was only ONE address slot. The problem might be with them connecting these to his real credit report, as he DOESN'T live here and they did NOT ask for an SSN. I may go see if I can fix this, but it may be too late.
Another fact: Chase says right on the page for adding an AU that the card will be reported to the recipient's credit report AS an AU user and may affect their credit score. Not sure of the technicalities, but it sounded like what I wanted
. There's still that address issue ... I wish I would have pre-thought a couple of minutes more.3 cards in one shot. I'll monitor his vitals and see what happens, if anything. And I will report back in!