Authorized user on credit cards

[ACS228]

I am considering adding my sister as an authorized user on my credit card to help her establish credit and to boost her credit score. I trust that she won't do anything to harm my credit rating so I am not worried about that but will just adding her negatively affect my score? Will I be seen as a higher risk? Also, will the credit card companies see this as a reason to lower my limit or cancel my seldom used credit cards? I want to apply for a mortgage in the next year so I am being very careful.

[boosami]

I am considering adding my sister as an authorized user on my credit card to help her establish credit and to boost her credit score. I trust that she won't do anything to harm my credit rating so I am not worried about that but will just adding her negatively affect my score? Will I be seen as a higher risk? Also, will the credit card companies see this as a reason to lower my limit or cancel my seldom used credit cards? I want to apply for a mortgage in the next year so I am being very careful.

Adding an authorized user does not impact your credit score directly. There is nothing on your credit report that indicates you have an authorized user for any accounts. There is typically no credit check or financial review that will impact you (though you can ask to be sure because the credit card company might have a policy to do a financial review or other "hard" credit inquiry at that point). The only ones who will know will be the credit card company who you contact to add her. They are generally happy to do this because it means an authorized user could charge more and make them more money in fees. If anything, they'll probably raise your limit in hopes you and the new authorized user will spend more.

Indirectly, of course, you could be impacted if your sister spends a bunch of money you can't pay back! Or if she uses a lot of available credit, maxes out the card, or goes over the limit. It sounds like you trust her, so this shouldn't be a problem. Make sure you keep tabs on the spending so it doesn't get out of control. Adding an authorized user is on par with being a co-signer on a loan. It isn't something to be taken lightly. Be careful!

[ACS228]

Thanks so much, this is very helpful. I will be sure to ask my credit card company about any hard inquiries.

[xpirtdesign]

GREAT INFORMATIOn boosami i can use the information you posted for myself thanks