Where I will benefit better as authorized user or as Co-signer?
Answers:
Don't co-sign for ANYTHING OR ANYONE. That's an excellent route for credit disaster. Co-signing is like "lending" money that never comes back
An authorized user's credit is not and should not be affected by what ever happens on the account good or bad and is not responsible for it. A "co-signer" is responsible for the account and the co-signers credit is affected good or bad, so if your not comfortable with the primary card holders credit history, best bet is to do it yourself. Once you get an account, the best way to build your credit is to pay the entire balance in full every month, and what ever you do, do not use the card for cash ! not only will this accrue finance charges at a daily rate, this shows the credit card company that you are a risk, and will not show as favorable when reviewing your account for a credit limit increase and upgrade to gold or platinum etc.
Don't be so concerned about Credit. Concern yourself with building wealth. Wealthy people have very little credit and use it rarely. Poor people get four or ten credit cards, (pick a number), and rack up tons of balances on things they don't really need. Then, they pay tons of interest on these things and saddle themselves for life. It's not good. Don't do it.
see www.daveramsey.com
An authorized user is someone who is added to another person's credit card account and authorized by the principal cardholder to use that account. The authorized user receives a credit card with his name on it and is able to use the credit card as if it were his own.
Payment history for that credit card is now reported to both the principal cardholder's credit report as well as the authorized user's credit report, regardless of whether the history is good or bad. That means the authorized user's credit can benefit from the relationship, but it can also suffer if debt accumulates and payments are late or not made at all.
However, if your friend or family member is not straight with you about his/her payment history (lates), seasoning (age of account), cash-to-credit limit (how much is charged to the card versus credit limit ratio), credit limit (what amount), there may not be a benefit to you.
On the other hand, you also may receive a real card with your friend or relative co-signing for you on their account, if that's your intent. There’s more risk, but it’s doable.
Co-signing only puts you in jeopardy if the other person doesn't pay. It makes you responsible for the entire debt!
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