Hi, Is it helpful to add someone as Authorized User on Secured card account? Is it going to help this person to boost his score, or itâ??s going to do more damage? Secured card account is around six months old with $250 limit. Thanks, Denny
Does it report as secured? How bad is the other person's credit? Or do they have any credit? All of this can factor into the decision.
They report as secured, but depend on CRA, somewhere they report as individual. Person that I want to help has 2 accounts only - he just started few months ago to establish credit, since he's new in this country.
If he's new in this country, he probably would have to get secured cards himself. Therefore, it might help him. Just remember, if you give him a card, you're liable for anything he charges, so be careful.
I know you want to be a good friend but more harm can be done from this than good. For example it would not take much to go overlimit thus causing more fees and headaches. The last poster has a good point, your friend should establish his own secured accounts. Best regards, Mirage
Re: Re: AU on Secured card â?? Good or Bad? Thanks for input. Eventually, I don't worry that much about going overlimit or something like that. AU card is going to be used resonably just to keep activity on it. Yes, the best thing is if he could afford his own secured card, but he's short of money. I was thinking that one more trading line in his credit file could help him boost score. But if this secured card is going to do more damage then success to his credit, I don't want to go with it. That was my main question - is it going to help him or not? Thanks, Denny
Re: Re: AU on Secured card â?? Good or Bad? Personal experience -- I haven't seen much drawback to using secured cards and/or installment loans. I'd say it would definitely help. Regarding other poster's points about being a good friend might come back to bite --- since the authorized user card is sent only to the primary card holder's address, primary cardholder can receive the AU card, but not physically give it to the intended authorized user. Any activity on either card will show up on both reports, and the intended AU can't complain; (s)he gets a new tradeline on credit report without much effort. The primary user just needs to keep some activity on the card.
Re: Re: AU on Secured card â?? Good or Bad? Like the others have said, there is a bit of risk involved in adding someone as an AU to your account. Even if you're OK with that, I doubt that one additional $250 CL account that's only 6 months old will really do much for his score. Right now I think his credit report needs age more than additional accounts. If he can find someone with an account that's 6 years old instead of 6 months, then he could get a nice score boost. HTH, Brett
Re: Re: AU on Secured card â?? Good or Bad? I don't see what you don't just add him as an AU and then cut up the card. Activity on your card will be enough and you don't need to worry about the AU pitfalls. I cut all the AU cards of my family that I have on my accounts to try and help their credit reports. Plus I am an AU on a few accounts where the card has been cut (or put away by the person). If they ever have problems, I'll just ask to be removed (though it could be a problem, its not a real big risk.) I say go for it.
Re: Re: AU on Secured card â?? Good or Bad? Thank you guys! As I see if I add him as AU on my secured 250$ CL card, that would be eventually some help to his score. Not that much since its 6 months old account, but still itâ??s going to give him one more positive trading line. I was just being afraid to not hurt his score, since its secured card with low CL. Thanks for help! Denny
Re: Re: AU on Secured card â?? Good or Bad? something is better than nothing in the CR. When a lender see it, they will say atleast this person exist since 6 months and may consider something rather than a person with negative rating.
