Adding My Kid Brother To My Amex Gold Just Made Sense

I’ve been deep in the personal finance sphere for over a decade, whether that’s talking about credit cards or expounding on the benefits of redeeming rewards points. It’s probably a little surprising, then, that this year my kid brother graduated high school with a part-time job and absolutely zero credit history. It’s not his fault; after all, he barely knows the difference between a credit card and a debit card.

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Still, when he came to me after being denied for far too many credit card applications, plus a skeptical landlord or two, I knew I had to do something. Although it’s possible for him to apply for a student credit card, or even a secured card option, neither of these will offer him the best rewards for his lifestyle.

This is because better credit card rewards and benefits are generally limited to those who have proven that they can responsibly use credit. Instead of recommending less rewarding options to him, I took a different approach: I made him an authorized user on my card.

Choosing the Right Card

I began by reviewing his spending habits and discussing what he was looking for in terms of rewards. He firmly turned down any cash-back cards (probably because he’s seen me on a few too many first-class flights), so I decided to add him to my American Express® Gold Card (Terms apply, see rates & fees).

I’ve had the card for a few years, and while I pull it out for supermarkets, it otherwise languishes in my wallet. I tend to use a combination of cards, many of which offer better rewards in other categories.

But for an 18-year-old with a lot of dining and grocery expenses? It’s an excellent option for earning American Express Membership Rewards®. This is thanks to it earning 4 points per dollar at restaurants (on up to $50,000 in purchases each calendar year, then 1 point beginning on 1/1/2025) and U.S. supermarkets (on up to $25,000 in purchases each calendar year, then 1 point).

Aside from the ability to earn strong rewards on his biggest spending categories, the Amex Gold also offers the ability to grow with him.

While he’s not traveling yet, when he starts he’ll be able to earn 3 points per dollar on eligible flights. He’ll also get to take advantage of complimentary travel insurance¹ and unique hotel booking options via The Hotel Collection.

These are all benefits he’d be missing with a lower-end card, and it makes me happy to know they’re an option for him even though he doesn’t have a credit history.

Other Benefits of Adding an Authorized User

Of course, I’m thrilled that all his spending is now earning him rewards, and he is too. But that’s not really the smallest part of adding him as an authorized user on my Amex card.

Sure, one day he’ll accumulate enough points for a flight or two (and I’ll steer him away from redeeming those points for gift cards). But there are two other major reasons why making him an authorized user made sense.

First, being an authorized user on a credit card can help build your credit. This potential boost is because Amex reports the positive credit behavior of the primary cardholder, like on-time payments, to the credit bureaus as if it’s the authorized user’s own. For my brother, this means his addition to the Amex Gold card can start building him a history of responsible credit usage to help improve his credit score. It’s important to note that with American Express, authorized users only build positive credit history. If a primary cardholder becomes delinquent, Amex will stop reporting on the additional card member to preserve the positive history.

Second, making him an authorized user gives me the opportunity to teach him how to use credit cards responsibly. Like many others, when I was younger I was given the chance to open a credit card with zero oversight. This led to me maxing out the card and needing to pay it off while accruing interest.

Since I can see all his purchases, I can make sure he isn’t going wild—and he’s less likely to do so because I’m the card owner, not him. Plus, Amex allows me to set spending limits for additional cardholders. As the primary cardholder on the account, I retain sole responsibility for the card payments, but I’m willing to support him in this process.

Combined, these things mean that when he’s ready for a different card (preferably one with a large welcome offer), he’ll have both the credit history and the chops to take advantage of its benefits without overspending.

A Rewarding Start to Building Credit

It’s not often that I get to see the direct impact of teaching others about personal finance. Sure, my words are published online, and I get the occasional email from readers letting me know that I’ve helped—but it hits a little different when I get to start molding someone from scratch.

My little brother could have built credit with suboptimal credit cards or by other means, such as taking out a loan with a co-signer. But it made more sense me to add him as an authorized user on my existing Amex Gold card.

This option lets him learn responsible credit card usage, build his credit history and earn rewards all at the same time. When he’s ready, he’ll be well prepared for any future credit needs, and I’m glad I get to be a part of that.

To view rates and fees for American Express® Gold Card please visit this page.

¹Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by New Hampshire Insurance Company, an AIG Company.