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Authorized User laws gone into effect...?

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Hi,

Quick question: I know there was a lot of talk about Authorized User laws going into effect, that would void someone from being attached to your credit history as their own, if added.

My question is has this gone into effect, and was it ONLY to curb the "Pay to Play, Credit for Hire" scame between strangers, or does it also include spouses?

Also... to add someone as a full joint user, I know they become responsible for the debt as a primary, but to add a spouse as a Joint Holder on a card, does the credit card company run a check on THEIR credit before completing the request?

THANKS!!! xangelx:mrgreen:

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Hi,

Quick question: I know there was a lot of talk about Authorized User laws going into effect, that would void someone from being attached to your credit history as their own, if added.

My question is has this gone into effect, and was it ONLY to curb the "Pay to Play, Credit for Hire" scame between strangers, or does it also include spouses?

Also... to add someone as a full joint user, I know they become responsible for the debt as a primary, but to add a spouse as a Joint Holder on a card, does the credit card company run a check on THEIR credit before completing the request?

THANKS!!! xangelx:mrgreen:

Authorized users are still in effect. If you do a search, there have been several articles posted that it was more of a rouse to get people to stop paying to get on other's CCs for reporting. AUs are still alive and well and although they were trying to discourage immorale activity it wasn't necessarily to discourage valid family members from becomings AUs.

As for joint users on a card, Yes, the CC company will usually pull the CRs for both people going on the card. Now if she doesn't work and you do, no worry there since the majority of applications now ask for Household Income as opposed to personal employment income. Your income would count as her Household income. Hope this helps.

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Authorized users are still in effect. If you do a search, there have been several articles posted that it was more of a rouse to get people to stop paying to get on other's CCs for reporting. AUs are still alive and well and although they were trying to discourage immorale activity it wasn't necessarily to discourage valid family members from becomings AUs.

As for joint users on a card, Yes, the CC company will usually pull the CRs for both people going on the card. Now if she doesn't work and you do, no worry there since the majority of applications now ask for Household Income as opposed to personal employment income. Your income would count as her Household income. Hope this helps.

Oh yeah, that def helps, thank you.

So... just so I am correct, before I add my spouse as an AU to my card(s):

- Adding her will immidiately create and boost her credit history to reflect the card(s) history or payment and longevity?

- I heard I should only add her to my 1) Highest balance card, and 2) Longest history card for best results... is that true?

- If I add her to 2 or 3 of my cards that are FLAWLESS (literally PERFECT for years) will that mean since she has NO PAST credit history at all, she will immidiately be given a 700+ credit score?

- How long should we wait after applying her as an AU (considering everything above is true and an advantage) to have her finally apply for her own (first) credit card?

PS: All of my cards have a zero balance right now, I was the only that posted the "Use it, or Lose it" a while back, and followed the advice to use the cards like cash and pay off in full every month. So, NONE of my cards has a balance, so no debt ratio... is this good or bad?

THANK YOU!!!!!!!!!!!!!!! :eek::mrgreen::eek:

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- Adding her will immidiately create and boost her credit history to reflect the card(s) history or payment and longevity?:

Yes

- I heard I should only add her to my 1) Highest balance card, and 2) Longest history card for best results... is that true?:

That would be the best option. Because you're both married it shows that together you're able to maitain the responsibility of having a high CL card over time.

- If I add her to 2 or 3 of my cards that are FLAWLESS (literally PERFECT for years) will that mean since she has NO PAST credit history at all, she will immidiately be given a 700+ credit score?:

No. She would be scored within a bracket of individuals that are under the same circumstances they are for determining her score. Then it would be a matter of time for her score to build history from there.

Credit scoring is actually determined by matching you up with a group with similar circumstances. The two of you would be in separate groups. You as a card holder with X number of CCs and being the primary accountholder compared to others with similar number of CCs. Here she is an AU with X number of cards, compared to other AUs with same X number of cards. It's all the same, BK people compared to other BK people, People with judgments with others that have judgments. Hope you aren't too confused with this.

- How long should we wait after applying her as an AU (considering everything above is true and an advantage) to have her finally apply for her own (first) credit card?:

Wait a few months, preferrably 6 so that it is well established. Then start for store cards like Target, Walmart, etc. Maybe even think of a secured card. In this economy if you can afford to squirrel away money in that fashion it would be a good idea. Once she has a couple of store cards, then try for a regular CC. But don't go hog wild on the credit. It could get out of control quickly if you're not careful then you guys will find yourself drowning in CC debt.

PS: All of my cards have a zero balance right now, I was the only that posted the "Use it, or Lose it" a while back, and followed the advice to use the cards like cash and pay off in full every month. So, NONE of my cards has a balance, so no debt ratio... is this good or bad?:

It's a 50/50. If you're looking for a CLI, some cards may want you to keep a small balance. Optimal Fico scores fall under 1-9% utilization. It all depends on what you're looking for better Fico score, CLIs, etc.

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Thanks a lot, I really appreciate the time you took to answer my itemized questions.

The only thing that I am offish about, is waiting another half year for my wife to apply for her first credit card. Sure we're both young, but I know I've been building credit since I was 17, and it has worked off very nicely. With her never having established any sort of blip on the FICO radar in her life thusfar, I was really hoping applying for a WalMart card sometime next month after adding her as AU to my 2 most attractive cards would be the route to take.

I have heard from the customer service dept in the collections building I work for that even without a credit history, WalMart will usually grant someone a minimum of $150 credit line to start out with; whether or not it is in her BEST interest to do that, or wait 6 months down the road, is what I'm curious about. If so, I/we will DEFINITELY wait, I want to follow reason, and not simply my own inexperienced conjecture.

Thanks again for your help, I will definitely apply what your final advice is. :mrgreen:

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Thanks a lot, I really appreciate the time you took to answer my itemized questions.

The only thing that I am offish about, is waiting another half year for my wife to apply for her first credit card. Sure we're both young, but I know I've been building credit since I was 17, and it has worked off very nicely. With her never having established any sort of blip on the FICO radar in her life thusfar, I was really hoping applying for a WalMart card sometime next month after adding her as AU to my 2 most attractive cards would be the route to take.

I have heard from the customer service dept in the collections building I work for that even without a credit history, WalMart will usually grant someone a minimum of $150 credit line to start out with; whether or not it is in her BEST interest to do that, or wait 6 months down the road, is what I'm curious about. If so, I/we will DEFINITELY wait, I want to follow reason, and not simply my own inexperienced conjecture.

Thanks again for your help, I will definitely apply what your final advice is. :mrgreen:

If you wait, you "may" have a better chance of getting a bigger CL than $150. It would be better off too because lets say she went shopping and spent $50 on the CL of $150, well she now has 33% utilization on just that amount. Now, lets say you wait the 6 months and you get a $500 CL for doing so, that $50 of the $500 has now turned into a 10% utilization of that card. Remember, when utilization is calculated, it calculates utilization of individual cards AND overall utilization of all the credit you have.

So, small CLs can hurt you if you use them and don't pay them off right away. It's better to just go for the big cards or the store cards that are guaranteed to give a nice CLI down the road.

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If you wait, you "may" have a better chance of getting a bigger CL than $150. It would be better off too because lets say she went shopping and spent $50 on the CL of $150, well she now has 33% utilization on just that amount. Now, lets say you wait the 6 months and you get a $500 CL for doing so, that $50 of the $500 has now turned into a 10% utilization of that card. Remember, when utilization is calculated, it calculates utilization of individual cards AND overall utilization of all the credit you have.

So, small CLs can hurt you if you use them and don't pay them off right away. It's better to just go for the big cards or the store cards that are guaranteed to give a nice CLI down the road.

Thanks a lot ISISLC,

Speakig of which, I've been doing some thinking/research, and I can't seem to find a specific answer.

Comparing Joint User to Authorized User; what are the differences in credit reporting? There was mention earlier about AU's are comapred to people in their 'group' and 'situation' in order to construct a more accurate FICO; but what about Joint User? Would a Joint user be seen on credit reporting as ALWAYS being responsible going into the past year for the debt, and also reap the benefits of being in good standing for all those years?

The reason why I ask, is because obviously AU's are seen as lower on the totem pole, when compared to a joint user who (I think) is the same as a primary card holder. Is that correct? So adding my spouse as a Joint Card Holder would give her a more favorable and direct boost in her credit history, and thus FICO?

Also, how does reporting work when looking at history... is it a basic snap-shot that shows a graph of every month you've been on time in full with your payments, or does it take into account your debt/credit ratios as each month passed in the years gone by, and other factors? I have always been confused what factors are looked at when a credit report is pulled/generated... (When I did the free once-a-year government credit check, it simply laid out every month of every year with a check-mark for paying on time, and listed my credit-to-debt ratio at THAT point in time... if all my debt is now paid off in full, and I have never once been late in 5 years of credit history, how would that be reported and subseuqently how would it be reported if my spouse was added as a joint card holder opposed to a AU?)

THANKS as always! :) :) :)

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Comparing Joint User to Authorized User; what are the differences in credit reporting?

Only difference in reporting is that one will say Authorized User on your CR the other won't. It will look as if it was their own credit card.

There was mention earlier about AU's are comapred to people in their 'group' and 'situation' in order to construct a more accurate FICO; but what about Joint User? Would a Joint user be seen on credit reporting as ALWAYS being responsible going into the past year for the debt, and also reap the benefits of being in good standing for all those years?

Both groups actually reap the benefits of all the months of reporting. Not just the month in which they are added onto the card but for every month before that time since the card has been in existence. For example, I was added onto a friend's card as an AU and since then I've reaped the benefit of 12 years of perfect payment history. The funny thing too is that I was removed last year and the CC still continues to update every month with the reporting history.

The reason why I ask, is because obviously AU's are seen as lower on the totem pole, when compared to a joint user who (I think) is the same as a primary card holder. Is that correct?

I don't think this part is actually true since the only way the AU notation would be noticed is if they do a manual review of your CR.

So adding my spouse as a Joint Card Holder would give her a more favorable and direct boost in her credit history, and thus FICO?

No matter how she is added, she will definitely benefit with a favorable boost to her credit history and Fico.

Also, how does reporting work when looking at history... is it a basic snap-shot that shows a graph of every month you've been on time in full with your payments, or does it take into account your debt/credit ratios as each month passed in the years gone by, and other factors?

It would be a basic snapshot for the last 2 years with the check mark of colored in box. The account info would also add the correct date for when it was first opened, the high limit on the card, and the current credit limit of the card.

. if all my debt is now paid off in full, and I have never once been late in 5 years of credit history, how would that be reported and subseuqently how would it be reported if my spouse was added as a joint card holder opposed to a AU?

The card will look as if it was her own card and she would show at least the last 2 years of perfect history. She will have all that I mentioned in the last question but it will also reflect a 0 balance. This will boost her utilization overall as well as for the individual card.

Adding her on as either will definitely give her a boost no matter how you look at it. The only times the AU really comes into effect is if you default and they try to come after her for payment, she legally has no responsibility over the debt as an AU. The other way too is if they did a manual review of her application. Those would be the only times the AU would even be seen. Otherwise all the benefits are there for her to reap.

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Np, I used AU to start out my credit rebuilding with a family member. Never had a card, just piggy backed. Now I have enough of my own credit that I had myself removed from the cards but I still get the positive reporting with the accounts for at least 10 more years. :D

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Np, I used AU to start out my credit rebuilding with a family member. Never had a card, just piggy backed. Now I have enough of my own credit that I had myself removed from the cards but I still get the positive reporting with the accounts for at least 10 more years. :D

10 years, whoa!!! :shock:

I had no idea, I thought things were only reported for 7 max? That is good news.

Does the reporting go on for a decade as if you were still authorized, and does it stop at the date you removed yourself? (What if tomorrow the person you used to be AU with declared BKO?)

Thanks :)

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I don't understand this concept because I am an Authorized User on someone else's credit card that has super good credit, always pays on time, & has a very long credit history. This card does not show up on any of my credit reports & never has. The card issue insisted that it was reported, but it is not. I know this would help my credit tremendously to get it reported so how do I do it?

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Quick question - it's my day off and I'm going to add the wife as a JC Holder to my account(s), but wanted to know something from you pros out there ;)

> Should I only add her to 2 of my cards, 1. Highest Balance, and 2. Longest History... OR, since all of my cards are flawless should I add her to all of them, since they all have zero balance? (Not sure if 2 cards is enough, or if they're all perfect, to add her to all of them)

> Last one... since 2 years ago, on my credit cards I had maxed them out at one point in time, will that be detrimental to adding my wife to the account for her credit, OR, is the credit history ONLY reported as what was paid on time, and what the balance CURRENTLY IS? (Does anything get reported from the past credit/debt ratio that would harm my wife if I added her to my cards?)

PS: My longest history card, Citi, does not allow Joint Card Holders, only AU's.

THANKS! :)

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I don't understand this concept because I am an Authorized User on someone else's credit card that has super good credit, always pays on time, & has a very long credit history. This card does not show up on any of my credit reports & never has. The card issue insisted that it was reported, but it is not. I know this would help my credit tremendously to get it reported so how do I do it?

Depending on who your primary card holder has for a lender, they may either add you just like that or else he/she would need to request a form from them. This would require your personal info, including you SS # and a copy of your ID. Mine had Chase and they sent me a letter directly, asking for the information to prove my identity. Once the requested info was returned, the account was added to my CR shortly afterwards.

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Quick question - it's my day off and I'm going to add the wife as a JC Holder to my account(s), but wanted to know something from you pros out there ;)

> Should I only add her to 2 of my cards, 1. Highest Balance, and 2. Longest History... OR, since all of my cards are flawless should I add her to all of them, since they all have zero balance? (Not sure if 2 cards is enough, or if they're all perfect, to add her to all of them)

> Last one... since 2 years ago, on my credit cards I had maxed them out at one point in time, will that be detrimental to adding my wife to the account for her credit, OR, is the credit history ONLY reported as what was paid on time, and what the balance CURRENTLY IS? (Does anything get reported from the past credit/debt ratio that would harm my wife if I added her to my cards?)

PS: My longest history card, Citi, does not allow Joint Card Holders, only AU's.

THANKS! :)

I would only add her to a couple of cards. She won't get a bigger credit score with the more cards you add. The fact that you almost maxed out the card will be displayed on her credit report. It will show up as her High Limit on the account, this is kind of frowned upon if you go over the limit. Everything current will still be reported how it looks now but the "High Limit" is kind of like the account's long term history. Otherwise, nothing really negative will come across on her CR as a result.

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Depending on who your primary card holder has for a lender, they may either add you just like that or else he/she would need to request a form from them. This would require your personal info, including you SS # and a copy of your ID. Mine had Chase and they sent me a letter directly, asking for the information to prove my identity. Once the requested info was returned, the account was added to my CR shortly afterwards.

This is for an Exxon gas card. The account holder has called Exxon & Exxon swears up & down they are reporting to the credit bureaus for me. (I'm an authorized user only...not a joint account holder) However, I have copies of all 3 of my CRA from 2009/2008/2007 & I think 1 or 2 from 2006 & Exxon is nowhere to be found on any of them. The Exxon account has been open somewhere around 10-12 years. Is there something else I should tell the primary account holder to tell them when she calls back to Exxon to tell them that I'm still not showing this on my credit report?

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I would only add her to a couple of cards. She won't get a bigger credit score with the more cards you add. The fact that you almost maxed out the card will be displayed on her credit report. It will show up as her High Limit on the account, this is kind of frowned upon if you go over the limit. Everything current will still be reported how it looks now but the "High Limit" is kind of like the account's long term history. Otherwise, nothing really negative will come across on her CR as a result.

Ugh, that's what I was afraid of! Does the high limit ever vanish to a new amount (like an inquery or collection etc), or is it an unstoppable force of nature, lol?

In that case, I might rethink my choices... but I will for sure follow your advice to keep the joint card holder additions to only a couple of cards. I suppose I will only add to my longest standing cards with lowest history high balance. Does anyone know of the eventual effect, or to what degree, a maxed-out or close to maxed-out (at one time almost 2 years ago) credit card will cause?

I would hate to add someone as a joint user, thinking just because it has been established for a few years with flawless payment history would be doing them a huge boost to their credit; and end up having my once-upon-a-time spending spree hurt them in the long run ;)

THANKS! :)

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