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authorized user for account less than yr old?


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My dad has agreed to put me as an authorized user. Bad thing is he closed his discover, mastercards that had well over 15 years of good history. the only thing he has left is a capital one card that he opened in January of 06, with a 4000.00 cl. Will this help me any?

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Potential positves:

1. maybe you have a utilization problem. This account could help with that

2. maybe your average account age < 1 year, then this could help you.

3. some claim that your average credit limit factors in, if so, if this is greater than your average credit limit, then it can help you

4. maybe you dont have "enough" revolving credit. If so, then this can help you

Potential negatives:

1. Utilization could take a hit if this card has a balance on it

2. could be lower than your average account age

3. the account is less than 2 years old, so there is some degree of negative hit in most cases for recent account opening

Bottom line - this card can help you if you have a utilization card and the balance is very low on this card. Other than that, there are too many factors for anyone to say without knowing your credit situation.

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I guess it would help me. Since my fico score is 594 and I just opened up 2 cc with a 300limit. I have 1 judgement and 1 CA. Have not had 1 year of cc history. My question is would this decrease my score? how long should I be on as an authorized user?

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It's always a roll of the dice, unless you can get access to a good simulator.

However, if it improves:

1. revolving credit history

2. revolving utilization

3. average credit limit (not sure this is factored, anyone?)

4. average time since account open

then it's very likely to be a net positive.

how long to stay on depends upon your credit file again. If your boost comes from utilization mostly, then as soon as you drop off, you lose the utilization. If you get a boost from number of active revolving credit accounts, then you lose that on closing also. The credit history sticks wiht you, which will help.

In the long-term, you'd probably want this account to end up wtih 2 years of history, so you might need to ride until then.

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