Is it possible to open credit cards under someone else's name to accumulate more points?

The concept is straightforward: Since your friends and family may not be interested in earning points and miles, you'd like to take advantage of credit card welcome bonuses using their names.

You've already obtained that credit card, but the thought of receiving another welcome bonus by using your dad's name is tempting.

Can you apply for credit cards in a friend's or family member's name to boost your points and miles? Let's investigate.

What do the regulations state?

Since this inquiry pertains to opening a card in someone else's name, there are two routes: obtaining that person's consent or proceeding without it.

Opening a card in another person's name without their permission constitutes identity theft. This is illegal and penalties can include fines, imprisonment, and loss of any assets acquired through this crime. Avoid this at all costs.

Conversely, suppose you ask a friend or family member for permission to open cards in their name, assuring them that you'll manage them wisely without impacting their credit score. In return, you fulfill the spending requirements and keep the points from the welcome bonus.

Is this permissible?

Take a look at the application terms for The Platinum Card® from American Express as an example:

By submitting this application, you are requesting the establishment of an Account in your name and the issuance of Card(s) as you specify. Only eligible individuals aged 18 and older may apply for an Account. This offer is valid for US Residents.

USA PATRIOT Act Notice: Federal law mandates that all financial institutions must obtain, verify, and record information that identifies each person who opens an account, including your name, address, date of birth, and other details necessary to verify your identity.

Similarly, consider the terms for the Chase Sapphire Preferred® Card:

USA PATRIOT Act: Federal law requires all financial institutions to obtain, verify, and document the identity of each person who opens an account. We need the following information or documents to process your account opening: your name, residential address, date of birth, Social Security number, and a driver's license or other identifying documents.

Both cards reference the Patriot Act, which mandates that banks must verify the identities of applicants. This could pose a challenge if you're trying to apply for a card in someone else's name, as they would need to provide documentation, their Social Security number, and other personal information.

Your family member or friend may feel uneasy about sharing all this information for a credit card they neither want nor care about.

Moreover, if the credit card is approved, it will be mailed to your friend's or relative's address, creating another hurdle. If the bank becomes aware of your actions, it’s highly likely that the account will be closed and any earned points and miles will be lost.

Even if you manage to get through this phase, there's still the challenge of programs that do not permit pooling points and miles together.

Alternative options to consider

Clearly, applying for credit cards in someone else's name is not advisable. Instead, let's focus on the core idea: you want to accumulate more points and miles.

Apply for more cards yourself

Naturally, you can apply for additional credit cards to take advantage of welcome bonuses. Check out the following resources:

• The top credit card welcome offers available now
• Your comprehensive guide to credit card application restrictions

Add authorized users

You might receive an offer for bonus points or miles when adding authorized users to your current credit cards. Check with your friends and family to see if they are okay with being added to your accounts since they won't be responsible for the payments in this arrangement.

Remember that authorized users can still affect your credit score if they misuse their cards. Only add trusted friends and family members, and establish clear guidelines for how they can use their authorized user cards.

Refer your friends and family

You could also educate your friends and family about points and miles and then refer them for credit cards. Many banks provide referral bonuses.

Leverage upgrade and retention offers

Don't overlook the chance to earn additional points and miles through upgrade and retention offers. These offers are personalized and may differ from person to person, but they can be fantastic ways to increase your points and miles balance.

Keep in mind that changing products to a different card will disqualify you from the welcome offer of that new card, so ensure that any upgrade offer you receive is worthwhile.

Key Takeaway

If you take away nothing else, remember this: Opening a credit card in someone else's name, even with their consent, is not advisable, and doing so without consent is illegal. There are alternative strategies to earn more points and miles without the risk of losing them or breaking the law.

You can discover ways to enhance your points balance without causing issues with banks or law enforcement. These include applying for more cards yourself, adding authorized users, referring family and friends, and taking advantage of upgrade and retention offers.