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Valued Contributor
Shellie
Posts: 1,269
Registered: ‎05-15-2013
0

Adding some one as an Authorized User, info please.

I am currently rebuilding my credit and working on the hubby's as well.  I have several store cards and also 2 CapOne's.  My oldest is a CapOne that is a little over a year old.   His score is sitting at 580 and he has several collections we have to tackle and some other baddies.  He has quite a bit to work.  He has no cards, no revolving credit.  Basically all he has is bad stuff.  The one thing that he has working in his favor is on time child support payments for several years.

 

My questions are:

 

How would it help him to add him as an auth user on any of these accounts?

Does my score matter in this scenario? 

Does MY utl matter? (the total across all cards). 

Does the age of the card that I add him to matter?

Is a credit card better to add him to vs. a card?

Will they do a HP on him to add him?

 

Thanks in advance for any and all help!  Hope this post isn't over the top.  I don't want to app for him and cards until I can get him to at least 600 if possible.  I think that's all I got for now.  Thanks!!!

myFICO EQ Starting Score 568 05/01/2013 Current Score 657



Regular Contributor
ksantangelo23
Posts: 142
Registered: ‎09-23-2013
0

Re: Adding some one as an Authorized User, info please.

[ Edited ]

Shellie wrote:

I am currently rebuilding my credit and working on the hubby's as well.  I have several store cards and also 2 CapOne's.  My oldest is a CapOne that is a little over a year old.   His score is sitting at 580 and he has several collections we have to tackle and some other baddies.  He has quite a bit to work.  He has no cards, no revolving credit.  Basically all he has is bad stuff.  The one thing that he has working in his favor is on time child support payments for several years.

 

My questions are:

 

How would it help him to add him as an auth user on any of these accounts? Any account you add him as an authorized user, his report will show the full history of that account from the date opened, as if he opened it with you. His score will be calculated accordingly.

Does my score matter in this scenario? No, his score will be calculated separately. If you only add him to credit accounts with a good history, you can cherry-pick which positive reports to give him.

Does MY utl matter? (the total across all cards).  No, his utilization will be only be calculated with what is on his report.

Does the age of the card that I add him to matter? Whichever accounts you add him too, they will have the same date of opening, not the date of being added to be authorized.

Is a credit card better to add him to vs.. a card? If you mean a traditional credit card vs. a store card, there is no difference in terms of how it is reported. a CC is a CC in the eyes of the credit bureaus.

Will they do a HP on him to add him? No (thankfully!)

 

Thanks in advance for any and all help!  Hope this post isn't over the top.  I don't want to app for him and cards until I can get him to at least 600 if possible.  I think that's all I got for now.  Thanks!!!


 

AMEX Surpass: $20,000 | AMEX BCP $1,00 | Capital One QS: $6,500 | Discover: $2,500 | Chase Freedom: $2,000 | PNC Points (AU) $17,500 | PNC Everyday (AU):$12,000 | Fidelity Investments (AU): $9,500 | JCP (AU) $5,000 | Auto Loan: $8900/$10500 (5 YR). CC Utilization: 1%
Discover (TU) FICO: 778 | (EX) FICO: 750 | FAKO: 796
Valued Contributor
Shellie
Posts: 1,269
Registered: ‎05-15-2013
0

Re: Adding some one as an Authorized User, info please.

Is a credit card better to add him to vs. STORE a card? Im not sure what you mean by this

 

This was supposed to mean adding him to a CapOne or a store card, like VS or something like that.

 

My keyboard crapped out on me when I was typing the word store apparently, sorry!! My keyboard is kinda wonky some times.

myFICO EQ Starting Score 568 05/01/2013 Current Score 657



Regular Contributor
ksantangelo23
Posts: 142
Registered: ‎09-23-2013
0

Re: Adding some one as an Authorized User, info please.


Shellie wrote:

Is a credit card better to add him to vs. STORE a card? Im not sure what you mean by this

 

This was supposed to mean adding him to a CapOne or a store card, like VS or something like that.

 

My keyboard crapped out on me when I was typing the word store apparently, sorry!! My keyboard is kinda wonky some times.


Ok, edited my post :smileyhappy:

AMEX Surpass: $20,000 | AMEX BCP $1,00 | Capital One QS: $6,500 | Discover: $2,500 | Chase Freedom: $2,000 | PNC Points (AU) $17,500 | PNC Everyday (AU):$12,000 | Fidelity Investments (AU): $9,500 | JCP (AU) $5,000 | Auto Loan: $8900/$10500 (5 YR). CC Utilization: 1%
Discover (TU) FICO: 778 | (EX) FICO: 750 | FAKO: 796
Valued Contributor
parakleet
Posts: 1,145
Registered: ‎04-13-2013
0

Re: Adding some one as an Authorized User, info please.

Just to add one thing - your UTL on the card that you add him as an AU will matter to his overall UTL. So, adding him as an AU to a maxxed out card won't be that helpful, just as adding him as an AU to a card with bad history won't be helpful either.


Gardening since 7/16/14
Current: EQ 711 7/13/14; EX 724 TU 721 6/19/14
Goal: 760+
Valued Contributor
Shellie
Posts: 1,269
Registered: ‎05-15-2013
0

Re: Adding some one as an Authorized User, info please.

I still have several store cards and most of them have either $0 balance or a very low %.  I'll probably add him to one of those for now.  Maybe add him to a CapOne when I get them paid down.  They aren't actually maxed out right now but they are close!

myFICO EQ Starting Score 568 05/01/2013 Current Score 657



Valued Contributor
Crashem
Posts: 3,096
Registered: ‎01-26-2012
0

Re: Adding some one as an Authorized User, info please.

OP,

 

There is no rush adding him to any of your cards until you are ready for him to apply for credit.  The reason is that whenever you add him, the entire account history will transfer to his account so it really doesn't matter when you do it as long as it hits before he applys for credit.  The only exception to this is AMEX as open dates for AU/ACM AMEX accounts are the actual date you added him to account vs normally the original open date on the account.

 

I would however recommend that he get his own accounts sooner than later as AU accounts are discounted by pretty much all lenders to some extent or another.  There is more of a rush to get him some kind of account as it is better to create his own history.  My recommendation is that you add him to a couple of your best accounts as AU.  Then app to Cap One for secured card for any amount.  Put that card away or just put small recurring charge that is auto paid.

               LIMITS IN CARD DESCRIPTIONS
Valued Contributor
Shellie
Posts: 1,269
Registered: ‎05-15-2013
0

Re: Adding some one as an Authorized User, info please.

I will app for his own cards soon.  I would just like to wait until he hits at least 600.  I was approved for my CapOne with a 568 and they were unsecured.  I just recently got his reports in the mail and I haven't had a chance to sit down and make a plan of action.  I just thought if I waited until his score was up a little that he would get better CL's.

myFICO EQ Starting Score 568 05/01/2013 Current Score 657



Regular Contributor
ksantangelo23
Posts: 142
Registered: ‎09-23-2013
0

Re: Adding some one as an Authorized User, info please.

[ Edited ]

Crashem wrote:

 

I would however recommend that he get his own accounts sooner than later as AU accounts are discounted by pretty much all lenders to some extent or another.  There is more of a rush to get him some kind of account as it is better to create his own history.  


 

I must disagree with that statement. My very first credit card under my name was the AMEX Blue Cash Preferred @ $5,800. My second was my CapOne, followed by my Discover card.

 

I opened all three accounts within about a little more than a couple months (late Aug- early Oct of 2013) and was only approved due to me being an authorized user with my grandmother. Ive read that lenders cannot tell the difference between authorized users and true account holders, which im inclined to believe due to my situation. But I also must acknowledge that one of my reports stated "Responsibility: Authorized User". So, im not sure if lenders can tell the difference between AU's and Primary account holders but it absolutely, definitely helps.

AMEX Surpass: $20,000 | AMEX BCP $1,00 | Capital One QS: $6,500 | Discover: $2,500 | Chase Freedom: $2,000 | PNC Points (AU) $17,500 | PNC Everyday (AU):$12,000 | Fidelity Investments (AU): $9,500 | JCP (AU) $5,000 | Auto Loan: $8900/$10500 (5 YR). CC Utilization: 1%
Discover (TU) FICO: 778 | (EX) FICO: 750 | FAKO: 796
Super Contributor
enharu
Posts: 7,132
Registered: ‎02-27-2013
0

Re: Adding some one as an Authorized User, info please.

@ksant, it depends on the lenders' policies. Some lenders, such as Chase, do not take into consideration any AU history. Whether they are able to tell the accounts are AU depends on how their systems are set up, but the info is there with the CRAs.
JPMorgan Palladium (100k), AmEx Platinum (NPSL), AmEx SPG (46k), AmEx BCP (42k), Chase Sapphire Preferred (47k), Citi Prestige (31k), Citi Thank You Preferred (27k), Citi Executive AAdvantage (25k), JPMorgan Ritz-Carlton (21k), Merrill+ (15k), US Bank Cash+ (22.5k), Wells Fargo (12k), Bloomingdale’s (12.4k), Chase Freedom (5k), Discover IT (5k).

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