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authorized CC user questions


Jookycola
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My lawyer told me today that having me as an authorized user on my sister or mothers credit cards will help raise my score pretty significantly. He suggests this to anyone post BK or just new credit wanting to start a business and wanting the best rate on a loan. I've heard of this loophole on here too.

I never had a BK, but i never had credit cards so when my last car was paid off 10 years ago i had no revolving or installment credit so everything on my reports slid off and i had no credit. Now i'm rebuilding my credit and my credit history is barely a year old. And although it's squeaky clean the history is still to short and my scores are just barely on the edge of good. (low 600's). My sister however has perfect credit and has had credit cards for years. If she adds me will it only bump up my score or will it beef up my history as well?

Because score wise i'm ok with what i have but what's keeping me from getting loans now is "insufficient credit history" I'm assuming being added to her CC's will also extend her history to me. Is that a bad assumption?

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That is the "idea' behind becoming an AU on someone's CC. But most CC companies have caught on and they no longer report the cards history on the AU's report. You have to speciffically request to beome a "joint-account holder" in most cases. This does involve pulling your credit files and there is a possibility that you will be denied.

I tried being an AU on my fiance's cards and it didn't help at all. All I got out of the deal was some new credit cards that had my name on them. blah.

That's when we asked about it and they said you have to be a joint account holder.

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I read a few articles since posting this that says there was a bill to prevent AU's from getting reporting benefits on their CR's. And that FICO was preparing a new formula that would omit the info from appearing on an AU's report or adjusting the score.

But people called that unfair, and legitimate AU's would suffer huge point drops. which the government looked at as unfair penalties being forced on good consumers so the bill was shot down and AU's can still piggyback.

I know it's still in practice today because a credit card i was an AU on from my Grandmother that was closed in 2005 shows up on my credit report. And this is my sister I'm asking to do this so if it's only immediate family i'm good. But my credit is clean and the score is so-so. Really i wanted the credit history more than a credit score booster. I'm hoping the history shows up too, not just "AU since yesterday" on my report.

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I know it's still in practice today because a credit card i was an AU on from my Grandmother that was closed in 2005 shows up on my credit report. And this is my sister I'm asking to do this so if it's only immediate family i'm good. But my credit is clean and the score is so-so. Really i wanted the credit history more than a credit score booster. I'm hoping the history shows up too, not just "AU since yesterday" on my report.

My Ex husband forgot to remove me as AU from a gas credit card, and my CR shows balance and payments by him, so it definitely is showing history that's helping me! Of course I would never attempt to use it.

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To give you some info based on my experience with this.

I was added as an auth user on my mothers AMEX account a couple of months ago. Her payment history has been perfect and shes had the card for more than 20 years. I thought it would give me a bump and was willing to give it a try. While the auth user trick is being dismissed for people who are not closely related I can tell yo for a fact that I was added. Buying multiple lots of account aint going to work anymore and is fraud anyway so its OK with me that they made the change....

Anyway...it didn't really have any impact on my scores but I'm guessing that its because I have a pretty long credit history myself. If this weren't the case I could see how it would have had a bigger impact

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That's awesome news. Because my score is ok, and my credit is clean. It's just lack of history that is keeping me from getting loans.

My Sister says she won't add me to her visa or master card because she's close to the limit on them right now from a family vacation we all went on a month ago and she doesn't want to hurt my credit. So she's going to add me to a couple of store cards she's had for like 20+ years.

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in your case it might really benefit you then.

like 10 or 15 % of your score is based on length of credit history, so say a potential of 85 points. If you aren't getting those points because you have a short history, and then get added as AU you will probably get a nice bump, maybe 30-50 points.

I hope it helps you...just keep in mind that it does take them some time to start reporting. I think it took like 3 months or so before AMEX started reporting me as an auth user....

good luck

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Many creditors and lending institutions will not factor in the authorized user into the score anymore. FICO 08 either totally eliminated it or only allows it for immediate family members. Some wont even take allow you to move forward if you have recent auth users accounts.

Establish a secured line and gain history. Also a line of credit will help if you can get approved for one w/ bad credit.

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