Is being an authorized user just as good as the account holder for score/credit etc?

[beeboah]

I have had so many baddies on my credit reports that I have just "piggybacked" on my wifes account as authorized user to get my score back up.

I am now to the point where I may be able to apply for a card in my name, but would honestly rather not until my credit is perfect (as to avoid secured cards, and cards with annual fees etc).

Do I really need open accounts in my own name to have the best score/credit/etc, or can I keep doing what I am doing?

Thanks!

[Ahntara]

It depends on your goals and timeframe. Some lenders don't report AU's. Obviously, piggybacking on one of those isn't going to help your score at all. But becoming an AU on one that does is a great strategy. How much of a bump you get depends on the account, how old it is, the utilization and how the debt is managed.

All new accounts generate score deductions because they don't provide historical data. These go on for about 60 mos. Additions (to the score) offset these deductions as soon as 6 mos, as the new account ages, therefore providing some 'history'.

So whether you should open new accounts depends on how long you have before a major loan application. 12 to 18 mos would be okay; longer would be better. But, hey, we do what we gotta do.

History is extemely important to scoring software. The statistical logic is that your past behavior sets a pattern for predicting future behavior (and calculating risk). Flawed logic, to be sure, but it's what we are working with...