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this is a way of looking at it that someone pointed out to me on another forum:
The safest way of doing it is adding your friend without giving him any information about the card itself (you keep the physical card). Obtain a security deposit from him which is nothing since your putting your excellent credit on the line.
Well what this does is, lets say you are a consumer with excellent paying history meaning always on time payments, since his name is on your account, this will mirror on his credit history. Any Recent history will over shadow and push bad credit or no credit to the next page. It does not erase bad credit but it pushes it back further.
So when a credit history is pulled on an individual most often its just the first or two pages that is paid for by the inquirer.
There is no advantage to you unless he fronts at least 50% non refundable security deposit. Usually the limit of the card.
It also works both ways, if you fuck up on your payments it will also reflect on him LOL.
Nothing illegal about this. You will see offers from your credit cards to add someone for no charge all the time.
Just remember, you keep the physical card and account # or even better yet shred it once you get it. He doesn’t need it. Control all access to your credit card online.
Nothing wrong in helping a friend but treat your credit cards like a business. Demand some money upfront and negotiations can begin. You can legally bind him to a promissory to pay note in any event he goes around your back and uses it. And that is where the security deposit comes into play. You cancel his name out from your cards and use the money to pay what he/she has charged.
But if you practice due diligence then you minimize your risk.
One of many tecniques in getting good credit fast.
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