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Adding an AU to help them rebuild

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Anonymous
Not applicable

Adding an AU to help them rebuild

I'm trying to help my mom rebuild her credit. Both my parents have horrible credit. About the same since they were joint on almost everything. I was wondering if adding her as an AU on one of my accounts would help her. We're going to get her a secured card as well. I dont think it'd be possible for her to get an unsecured. But I wanted to know if it'd be better to add her as an AU also so she has more good history reporting. Since I'm just starting my history, my cards havent been open long which is why I'm not sure it'll help. If so, which card would be best to add her to? I have a Captial one that's 8 months old, always paid on time. Or a discover with a better limit but I just got it this month and I dont think it's reporting yet. Or I have a bank of america card, but that's only been open since february. I was thinking the capital one. Does captial one report AUs? Any help would be appreciated. I'll provide some of her info below. If you guys could give me any suggestions at all, I'd appreciate it. Thanks Smiley Happy Oh! Also we're working on PFD on her collections (below), but wanted to get some good history reporting while we're in the process.

 

My Mom's Info:

AAoA: 7.2 years

-No open credit accounts or installment loans.

-3 or 4 unpaid collections on EX and EQ (newest i think was 2010) TU has a couple more but paid (I know that doesn't really matter for FICO scoring, sending GWs)

-an open mortgage that is a mess. A slew of 30 and 60 days late for the past year that I could see when we pulled their reports. A couple OK's here and there =/ The past few months have been paid on time. (HSBC is in the process of reviewing it for a "hardship case" to see if they can lower the monthly payments.) $37,000 left on it.

-the only two good things on her report are only on EQ. Their car loan paid off in 2004 and Discover Card closed in 2005. Both were always paid on time.

 

Any help would be great. Thanks everyone Smiley Happy

 

EDIT: We applied for a CapitalOne card online and she got approved for a $300 limit. Small, but it's probably in the credit steps program. Definitely a huge step Smiley Happy Now I'll teach her to only use <9% and we'll work on getting those collections removed!

Message 1 of 6
5 REPLIES 5
pakman92
Established Contributor

Re: Adding an AU to help them rebuild

Her AAoA seems pretty decent to me @ 7.2 years.  I don't think adding her as an AU to your CC will do much as you said, your accounts were recently opened.  It's not clear that it may help at all in fact.  The quickly way in this case is to get her util down to <9% and have a balance reporting on only one of her revolving account.  (i.e. pay in full BEFORE ther satement date).

 

I'm sure others will have more sage advise.  Good luck in helping her.


My Starting Score: EQ: 691 (11/30/11) TU98: 726 (11/30/11)
My Current Score: EQ: 779 (04/22/13) TU08: 835 (06/03/13)
DW Starting Score: EQ: 742 (03/02/12) TU98: 748 (03/02/12)
DW Current Score: EQ: 784 (03/11/13) TU08: 775 (06/03/13)
Message 2 of 6
Booner72
Senior Contributor

Re: Adding an AU to help them rebuild

Since she doesn't have revolving credit, it could help quite a bit - When I added DH to my (relatively new) cc's, he went up about 100 points on each CR.  I've read other posts of signitcant bumps for adding revolving.


Ther trouble will be getting them to report to her CR.  When I added DH it only took about a week for the cards to report.  Around that time I added my brother, and those cards have never reported. 

 

FYI:  Carecredit, JCPenney, Walmart (All GE).

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Message 3 of 6
Anonymous
Not applicable

Re: Adding an AU to help them rebuild


@Booner72 wrote:

Since she doesn't have revolving credit, it could help quite a bit - When I added DH to my (relatively new) cc's, he went up about 100 points on each CR.  I've read other posts of signitcant bumps for adding revolving.


Ther trouble will be getting them to report to her CR.  When I added DH it only took about a week for the cards to report.  Around that time I added my brother, and those cards have never reported. 

 

FYI:  Carecredit, JCPenney, Walmart (All GE).


Glad to hear that it helped! Hope mine will help her. Plus we applied online for an unsecured CapitalOne card and she got approved!

Message 4 of 6
Anonymous
Not applicable

Re: Adding an AU to help them rebuild

I don't think adding her as an AU on any of your cards is going to do much for her.  I think you should focus on building your own credit and helping her build back her credit, but keep it seperate.  I'm glad she was able to get a CapOne; I would recommend using that for 6 months before applying for another card.

Message 5 of 6
Wolf3
Senior Contributor

Re: Adding an AU to help them rebuild

Now that your mom has an open CC, your AU will not help much and it will lower the AAoA.   

 

She still may want to open a secured card with a large deposit to help get larger CL in the future.

Message 6 of 6
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