Credit Cards

[smallfry]

My 18 yo daughter got an AMEX Clear 2K limit. Only TL's reporting were a few small student loans which were deferred plus AU on a few of my cards. I can't get an AMEX she got one using my tradelines. LOL.

[happy0510]

Does anyone know the effect of AU's on mortgage apps?

[Lexa]

I don't think it will help with mortage though... In this case it can help with the scores (lower utilization, longer credit history etc). But for clean and thin files it should be a different story as all the mortage app's will be carefully review by underwriters. BTW, do you think instant approval system with major banks' CC can distinguish the difference between primary and AU accounts as well? If anybody has more experience, please share I'm trying to get good cards for my GF adding her as an AU on my cards. She doesn't have any history axcept for my 3 AU accounts Thanks for your help, guys!

[smallfry]

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Lexa wrote:

I don't think it will help with mortage though... In this case it can help with the scores (lower utilization, longer credit history etc). But for clean and thin files it should be a different story as all the mortage app's will be carefully review by underwriters. BTW, do you think instant approval system with major banks' CC can distinguish the difference between primary and AU accounts as well? If anybody has more experience, please share I'm trying to get good cards for my GF adding her as an AU on my cards. She doesn't have any history axcept for my 3 AU accounts Thanks for your help, guys!

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Your reports distinguish between individual and authorized user accounts so the issuer can most definitely see what is what.

[txjohn]

AU accounts help and then don't help for mortgages.

They help because they help FICO.  So if they push your FICO to the score you need to get a rate, they helped.

They don't help as a credit reference because they are not your account, so they are not considered by the lender.

However, this can help also because the balances and payments then are not your responsibility. 

The thing about mortgages though, is that they go with your score, then look at any disqualifying derogs, then income, then debt and DTI.  If these add up, you can get a loan.  You don't really need a lot of CC TL's to get a mortgage.

So, IMO AU's help because they get you to the FICO you need to get a better rate.  And the lender doesn't calculate the FICO, so they cannot remove them from the score.

[Lexa]

Smallfly, I know the reports distinguish between responsibility of the accounts and the underwriters will too. The question was if the Instant Approval System can do that (computer). and if anybody ever had experience with being instantly approved with AU accounts only

[smallfry]

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Lexa wrote:
Smallfly, I know the reports distinguish between responsibility of the accounts and the underwriters will too. The question was if the Instant Approval System can do that (computer). and if anybody ever had experience with being instantly approved with AU accounts only

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As I said my daughter was instantly approved by AMEX with only AU lines showing on her reports.