Reading ocnblu's thread about a new car, this just popped into my mind so I thought I'd make a new topic about it for everyone to see. Essentially it is a loophole in the GM Card system and allows anyone to use another person's points.

My parents have two cards, and my sister used one card's points on her Cruze and I used the other points on the Camaro. However, prior to the day we each bought our respective car, neither of us were on the card and thus couldn't use the points. However, we got added to the card and were able to use the points without our parents having to co-sign on the loans.

Basically you simply call the GM card, tell them you are adding someone to the card, and that allows them to use the points (and they are sent a card to use as well). However, you can call the GM card right after the vehicle is bought and the points used, and take the person off the card, as if they were never even on it.

Reason I am posting this is because anyone can "give" their points to anyone else. For instance, my dad's best friend has like $5k in Card credits, and he has 2 cars that he bought within the last year (neither are GM cars) so by the time he actually uses his points, if ever, he could have rebuilt to the maximum amount allowed anyways. If my dad was to buy a new GM car, he could be added to his friend's card, and use the points.

The idea here is you use say $2000 worth of points, and pay the person some sum of money on the side ($1000?). Saves you money and the person makes money that they would never get out of the points because the points do not roll over after a certain number of years, and can then start accumulating points again.

Interesting. Suppose you add someone to the card who has a lower credit score than yours? Does it impact your score having them on your card?

Interesting. Suppose you add someone to the card who has a lower credit score than yours? Does it impact your score having them on your card?

As an authorized user? Shouldn't...

Interesting. Suppose you add someone to the card who has a lower credit score than yours? Does it impact your score having them on your card?

That's a good question, I think we asked the finance lady at the dealership that and she didn't think it would do anything to my parent's credit score. I had zero credit, I'd not sure if I had bad credit if that would have been an issue.

I just googled this and this page popped up:

http://askville.amazon.com/adding-credit-card-authorized-user-help/AnswerViewer.do?requestId=8097080

"Authorized User" usually means nothing more than an ability to access/change the personal information on your credit card account and are authorized to use the card.

An authorized user doesnt have to go through a credit check to be added AS an authorized user, which is a big sign because almost nothing affects your credit that doesn’t require a credit check.

The person that posted the above quote claims to be a former Visa service rep, so I would think they know what they're talking about. Combine that with the finance lady at the dealership and I don't think there is any effect.

^ Also I would think the very limited time they are on your card (24 hours maybe), and that also points to it not having a (lasting) effect.

I have read more than one account where this deal is done between strangers: agree on a cash value, meet at dealership, add user, get cash/redeem points, cancel card outright.