American Express Membership Rewards - Will me getting an additional card for someone with bad credit impact my credit

I want to get an additional HH AMEX on my account for someone that has a bad credit history. (won't go into why) I have what I would consider "perfect" credit and I have never been late on any payments and always pay all of my CC off in full each month. I was going to fill out an application for an additional card that I recently got from AMEX but I got a little scared when I noticed that they wanted the SS# for the additional cardholder. So the stupid question is....will the additional cardholders credit score impact me in any way? Might I open up the door for AMEX to adjust my credit standing with them by associating my account with someone that doesn't have good credit?

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I would also be intersted if someone knows. I want to help my friend who had to file bancrupcy last year. He has a credit card now, but his credit limit is only $700 and I would like to add him to my business card so he can have a larger credit limit.

The only negative thing would be there potential irresponsible use of the card putting you in a position of you could not pay it off.

Our son has a supplemental for our Amex plat since he was 16. It has given him the ability to establish credit and get his own card.

I wouldn't think so, though I don't have a definitive answer. You are, however, making his future activity on your card part of your credit record (payments, credit limits, balance as a percentage of credit limit, number of accounts, account inquiries, etc.).

AFAIK historically, supplemental cards essentially add the credit history of the main account to the holder of the supplemental card. They do not and never have change the credit history of the primary holder in any way.

That said, the primary holder is always responsible for activity and paying the bills so you need to ensure you maintain control over the use of all supplemental cards.

Also, in the changes to Fico that are being introduced this year, supplemental card holders will no longer get any credit history added to their account when they get a supplemental card so it will have completely no effect on either of your credit scores (that hasn't happened yet though).

So in summary - His score should improve and yours should stay the same (until the Fico changes when his will return to normal as if the card didn't exist).

Of course, this is just my understanding. I could be wrong.

There will be absolutely zero effect to your credit reports from issuing an authorized user card. If the authorized user has bad credit history, it won't carry over to you or harm your credit in any way.

Just make sure he pays the bill I guess...that is the only potential downside there.

Our son has a supplemental for our Amex plat since he was 16. It has given him the ability to establish credit and get his own card.

So in summary - His score should improve and yours should stay the same.

There will be absolutely zero effect to your credit reports from issuing an authorized user card. If the authorized user has bad credit history, it won't carry over to you or harm your credit in any way.

Took a chance & gave the authorized user the benefit of the doubt. Since the statements were paid timely by "BOTH" users, there was no effect on the primary's FICO. In time the authorized users FICO improved and began receiving their own favorable offers by Amex & other CC CO's. Upon this result the authorized user card was closed. All ended favorably & the primary user got to keep the MR's as a repayment ^

My partner is a supp on my Amex Plat, which shows up on her credit report as an Amex account opened the same year I opened my first Amex account (long before she was added as a supp). Not sure how, if at all, it affected her score.

Thanks for all the replies! Makes me feel a little better and I will go ahead and apply for the additional card. I am not concerned about the account not being paid in time because I will be paying the account balance and not the additional cardholder. Sadly my SO had some credit issues in the past and I didn't want it to impact my credit score. Since the card will be used for our combined household costs I will cover the costs charged to the bill and I am not concerned about running up additional charges on the card. In my case I am giving it to someone I live with and have been in a LT relationship with and not a friend, etc. Thanks again!

Is this true for cardholders in the UK also? (i.e. does Amex check the credit of potential supplementary cardholders?)

Thanks,
J.

Oh yes Amex do check the supplementary cardholder credit in the UK. I have 2 data points.

1) A Chinese ex-gf, student, very short UK credit history, got a supplementary Centurion no problem.

2) An ex-colleague, slightly shady character, rejected outright - I was not told why.

Neither case had no impact on my credit score whatsoever. Don't know about theirs.

2) An ex-colleague, slightly shady character, rejected outright - I was not told why.
It's my understanding this isn't so much a "UK" thing as the fact that I understand that if you've ever defaulted on an AmEx product (and didn't repay it) that you can't even be a supplemental cardholder with them.