What are the Pros & Cons of adding someone as a authorized user to one of your credit cards?
Credit Score
I just started establishing credit not that long ago, but I have 3 credit cards and a Macys card. I been making my payments on time and everything is going well. My brother, has bad credit due to some poor choices he made a while back. He can’t even get approved for a card really. So he’s asked me to add him on as a Authorized User to one of my credit cards, but when his card comes in the mail to Destroy it. He won’t use it and doesn’t want to use it, he just wanted to be under one since he has no way of building credit so I can help him. (He bought his car outright cash so he can’t even do that to help his credit)
Now I was wondering, what are the Pros & Cons of adding my brother?
Remember, he is not going to use the card, he just wants me to help him help his credit.
Thanks.
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Cons: If he ever does use it you will be 100% responsible for the bill in the eyes of the law.
Pro: Your brother will love you for it!!!
As long as this goes down as you described, there is no down side really.
Your good pay history will show up on your brothers credit and it will help him.
Be aware that even though he may not have a card, he can still access your account on the net.
Being an authorized user will not help him b/c YOU are the responsible party and not him. I wouldn’t put ANYONE on my credit card. They could find an old bill in your garbage with the number on it and shop online….my credit is MY credit and I wouldn’t let anyone even have the CHANCE to screw it up. If he wants credit he will need to work for it like you did.
Spifiman’s right, but I wanted to add a little more to it…
(click below)
Also, another option to help him out would be to open up a secured credit card with Orchard Bank or somebody. They’re the easiest to get. I posted a link to apply
He would have to be a joint account holder to help buil his credit back up. I still would not add him as an authorized user, because he could still rup up the charges and you would be held liable for them because you are the primary account holder. Not a good idea. Your brother should get a secured card and try keep it up on his own.
This is called piggybacking.
See article.
10 pts please.