American express?
I added my sister as an additional cardholder to help her build credit. It said in the terms and conditions that they have to right to verfiy, share, and exchange information with consumer agencies for both account holders and additional cardholders. Therefore, doesn't that mean that her credit history will be affected. I called customer service; he said that it doesn't help her build credit. Another person said, "It builds credit with AMEX; then she can apply for her own AMEX card to build credit with the credit bureau." A member of yahoo! answers said that he was added as an additional cardholder and the record was recorded in his credit report. So, which one is it? Will she build credit or not?
Public Comments
- Yes, she will. But remember that if you default or anything that reduces your credit, as long as she's on your card, it will reduce her credit. And, come the day she wants her own card, you can't just "remove" her from your card. You will have to cancel your card and open a new one. So you might want to get a spare card and put her on it - one that you won't mind cancelling when she's ready for her own. It will cross companies becuase they all check with the credit bureas and it will show up on there.
- Usually not. Most creditors only report about the account on the main account holder's credit report. Your sister should contact AE directly and inquire if she qualifies for a card. You may be able to be a co-signer on the account but you will need to ask specifically if that is available.
- yes, she does make some credit, but not lot
- Lots of confusing answers given here. Let's try to clear up a couple: Being added as an authorized user on a card can and does improve your credit score, provided the account is reported to the credit bureau. Not all companies will report for an authorized user. You may be able to ask them to, maybe not. I have directly seen 40-60 point jumps in scores simply by having a very old credit card with a perfect history, low balance and high limit added to a report. So this, to me, is factual, as I have seen it first hand. If they don't report it to the bureaus, you can't force them to, nor can you ask the bureaus to seek out the data themselves. They won't. I tried that before too. And if she's only an authorized user, you won't have to shut down your account to remove your sister. You just shut down her card and authorization. If she's liable for the debts, then yes, you'd have to roll over the account. And yes, AMEX DOES report to the bureaus. Always. However, their normal "green cards" are "OPEN" accounts, not revolving, since they are payable every month in full. I honestly don't know how these differ from normal cards as it relates to how they affect scores. One final note: Assuming it is being reported, and you want it to be beneficial, you should use the card one month, let it get billed, pay it off and let it sit for 1-2 months unused. Then do it again. The scoring systems look at patterns of usage. Seeing a card that is used moderately, and paid off in full in a short period, and not being used again immediately, is supposed to be a big helper to credit scores.
- A Joint Account holder will show up on credit report because the person is equally responsible for the account. Companies report this. An authorized user status usually does not show up on credit report because the person just has permission to use your card. They are not responsible for your account therefore, companies usually do not report this. I have been an authorized user on other peoples accts and I can vouch that it was NOT reported to the credit bureaus but when I become a joint account holder, it WAS reported to the credit bureaus. I am an american express acount holder for the gold and blue card. They both report monthly so if you have added your sister, you can always pull her credit after one month just to see if it is showing on her report but it is highly unlikely. Your sister should look into getting a secured card to build her credit. That way, she can establish a positive payment history with a credit card company on her own. Its best if she only uses 25% on the limit she receives and then she should pay at least 3 payments before paying the card off. After paying off the balance, do not use the card -- her score will imporve and she will have a credit history. Soon after, she will get offers from other companies.
* Some answers may have been provided by Yahoo! Answers.