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LuckOfTheLibra

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Adding authorized user- Which card, how many
I'm looking into the pro's/con's of adding my fiance as an authorized user to help build his credit for various reasons for our future together.. However, I'm not entirely sure the best way to go about it, he has not had a credit card in his life thus far.
I have 3 cards myself, two of which are stores (Kay Jewelers, and Walmart) and a Capital One Platinum, which is the newest, I also no longer use the Kay's card, but it's the oldest so I've chosen not to close it.

What card would be most beneficial for him to be an AU on?
Would it impact him(or myself)negatively if I were to add him to both Walmart and Capital One, also, would there be any positives to doing that?

Also before I'm reminded to be careful about letting someone be an AU, we've talked about potentially adding him, but not actually giving him access to a physical card to use.

Thank you in advance for any advice you can give.

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If the Kay card is the oldest card then that would be the best one to add him to in order to help his "average age of accounts". You are smart by not actually wanting to give him a card. Tell him to get a card soley in his own name ASAP!! A secured credit card from Capital One would be a good starting place.

Reply by
LuckOfTheLibra

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I appreciate the response.  The kay card is one we plan on not using again, it hasn't been used in a couple of years, does this matter?

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It is a very difficult decision adding someone as an AU of your credit cards. I have done this for a few people. There are both good and bad. Lets talk about the cons first. One of the biggest is the finanial obligation. If he runs up a bill and doesn't pay it for what ever reason you are obligated to pay. Each credit card issuer is different, but i know amex allows me to place a monthly spending limit on any additional card. This gives you control over the card, somewhat. Lets say you have a credit limit of $10,000 on the card. That $10,000 will show on his credit report but you can limit him to $500 a month. I do this in the event an AU on my account doesn't pay I can cover the charge without placing myself in finacial stress. 

Now for the pros. His credit score will improve. Even if he doesn't use the card, his credit score will increase. know, depending on how heavily the card is used, your score could decrease by a few points. You can avoid large flutuations in your score by keeping the utilization less than 10%. You may have to make multiple payments throughout the month to accomlish this. Take the same $10,000 credit limit on a card. When the balance starts getting close to $1,000, make a payment. Keeping this down shows responsible credit use. 

As far as which card, the walmart and the capital one is good cards. Both cards to gether will give him a larger amount of revolving credit. Additional cards can be requested online from your online credit card account. I hope this helps. 

Reply by
LuckOfTheLibra

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Thank you very much for replying. I definitely see and understand the biggest con you mentioned.

My credit card utilization at this moment is at 1% as I tend  not to make large purchases with them (I tend to pay the light bill, heat bill etc with them), or if I do, I already have the cash and pay all or the majority of the bill once my statement is ready. 

I just wasn't entirely sure if it would have any positive or negative effects adding him to both at once, regardless if he is given  a card of his own to use.

Your response was helpful and I appreciate you taking the time to answer

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