Adding my brother as an authorized user on my American Express card is more than just a way for him to earn rewards; it’s a strategic move to help him build credit and learn responsible spending habits. When he becomes an authorized user, he benefits from the positive credit history I’ve established, as Amex reports my on-time payments to credit bureaus, which can significantly boost his credit score. This is crucial for him, as a solid credit history will open doors to better financial opportunities in the future. Additionally, this arrangement allows me to guide him in managing his credit wisely. Unlike my own experience, where I had no oversight and ended up in debt, I can monitor his spending and set limits, ensuring he learns to use credit responsibly. Ultimately, this experience will prepare him for future credit applications, enabling him to take advantage of lucrative offers without the risk of overspending.
Read the full article here.