Does Amex Report Authorized Users Under 18?
Understanding how credit card companies report authorized users, especially those under the age of 18, is crucial for both parents and young adults. American Express, one of the leading credit card issuers, has specific policies in place regarding the reporting of authorized users. This article delves into the details of whether Amex reports authorized users under 18 and what it means for them.
Amex does report authorized users, including those under 18, to the credit bureaus. However, the way these reports are made can vary depending on the circumstances. When a parent adds their child as an authorized user on their credit card, the child’s credit activity will be reported to the credit bureaus. This can have both positive and negative implications for the child’s credit history.
On the positive side, if the authorized user makes timely payments and manages the account responsibly, it can help build a positive credit history. This can be beneficial when the child applies for their own credit card or loan in the future. The credit bureaus will take into account the authorized user’s payment history, credit utilization, and length of credit history when calculating their credit score.
On the negative side, if the authorized user fails to make payments or uses the credit card irresponsibly, it can negatively impact their credit score. It’s important for parents to monitor their child’s credit activity and ensure they are using the card responsibly. This can help prevent any potential negative effects on the child’s credit history.
It’s worth noting that Amex may not report authorized users under 18 in all cases. If the child has reached the age of majority in their state (which varies by state), Amex may treat them as an independent account holder and report their credit activity separately. This means that the child’s credit history will be separate from their parent’s, and they will be solely responsible for their credit activity.
In conclusion, Amex does report authorized users under 18, but the impact on their credit history depends on their responsible use of the credit card. It’s essential for parents to educate their children about credit and monitor their credit activity to ensure a positive credit history. By understanding the reporting policies of credit card companies like Amex, parents and young adults can make informed decisions regarding credit management.
