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Regular Contributor
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Authorized User Effects

I know adding a spouse as an AU can affect their scores via utilization, but are there other things to take into account when deciding what cards to put my DW on?

 

I am guessing also AAoA?


What about the effect on them applying for their own cards in the near future? Does it affect possible CL extended on a per bank basis? Does it count as a new card to say 5/24, or just in general when a bank considers how often someone is aquiring new credit?

 

I'd just like to understand AUs a bit more so any insight is appreciated. Thanks!

 

EQ08 784(+85)TU08 777(+81)EX08 813(+100)(2015-01-29)Credit: $120.9KUtil: 2%Inq: EQ 4 EX 4 TU 3


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Re: Authorized User Effects

Chase doesn't factor in AU's so the 5/24 rule means nothing with AU's. AU's IMHO is pretty useless if your sole purpose is to build his or her credit profile. Might help slightly with some people with certain banks might go looking at it but You are better off getting a secured card and use it for history IMHO. I have a friend as an AU on 3 cards and its just so he can use credit vs paying cash and he pays be back later. I don't believe it really helps him out though but I will ask him to pull his reports I guess and check.


My Cards: Amex BCE: $9,000, Amex Hilton HHonors: $2,000, Amex ED: $12,000, Barclays NFL extra points: $3,000, Bank of America MLB cash rewards: $17,000, BBVA compass NBA Amex triple double rewards: $17,000, Chase Amazon: $1,000, Chase Freedom: $9,000, Chase Sapphire: $5,000, Chase Slate: $5,000, Chase Disney: $4,000, Citi Double Cash: $5,400, Citi AA plat: $5,500, Citi Simplicity: $3,000, Citi Thank you preferred: $8,800, Capital one GM: $2,000, Capital one PlayStation: $3,000, Gamestop: $1,150, Amazon Store: $5,000, Ebay MasterCard: $5,000, American Eagle Storecard: $750, Macy's: $500
EX: 744, TU:750, EQ: 740
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Re: Authorized User Effects

I am more worried about any negative effects vs positive ones. Her credit profile is pretty good, mid 700s right now, 1 medical collection I am working on and a missed payment over a year ago (damn Macy's with no autopay!)

 

I want to add my DW to my CSP so she can use it. I just want to make sure it won't affect her negatively when she applies for SW Premier to get the 50K bonus.

 

That's the short term concern, but in general the more data points I have the better.

EQ08 784(+85)TU08 777(+81)EX08 813(+100)(2015-01-29)Credit: $120.9KUtil: 2%Inq: EQ 4 EX 4 TU 3


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Re: Authorized User Effects


4thekill wrote:

I am more worried about any negative effects vs positive ones. Her credit profile is pretty good, mid 700s right now, 1 medical collection I am working on and a missed payment over a year ago (damn Macy's with no autopay!)

 

I want to add my DW to my CSP so she can use it. I just want to make sure it won't affect her negatively when she applies for SW Premier to get the 50K bonus.

 

That's the short term concern, but in general the more data points I have the better.


That's pretty good to be in the mid 700's with a collection on your record.



Citi Double Cash: 1B CL | Discover IT: 600M CL | AMEX BCP: NO Limit | Lowe's: 450k

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Re: Authorized User Effects


12RingKing wrote:

4thekill wrote:

I am more worried about any negative effects vs positive ones. Her credit profile is pretty good, mid 700s right now, 1 medical collection I am working on and a missed payment over a year ago (damn Macy's with no autopay!)

 

I want to add my DW to my CSP so she can use it. I just want to make sure it won't affect her negatively when she applies for SW Premier to get the 50K bonus.

 

That's the short term concern, but in general the more data points I have the better.


That's pretty good to be in the mid 700's with a collection on your record.


Her UT is 27% at the moment, AAoA 10.5 yrs, installment loans (mortgage, student, auto) with a lot of history.

EQ08 784(+85)TU08 777(+81)EX08 813(+100)(2015-01-29)Credit: $120.9KUtil: 2%Inq: EQ 4 EX 4 TU 3


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Re: Authorized User Effects


4thekill wrote:

12RingKing wrote:

4thekill wrote:

I am more worried about any negative effects vs positive ones. Her credit profile is pretty good, mid 700s right now, 1 medical collection I am working on and a missed payment over a year ago (damn Macy's with no autopay!)

 

I want to add my DW to my CSP so she can use it. I just want to make sure it won't affect her negatively when she applies for SW Premier to get the 50K bonus.

 

That's the short term concern, but in general the more data points I have the better.


That's pretty good to be in the mid 700's with a collection on your record.


Her UT is 27% at the moment, AAoA 10.5 yrs, installment loans (mortgage, student, auto) with a lot of history.


That's excellent! Pretty thick file at 10.5 yr AAoA.



Citi Double Cash: 1B CL | Discover IT: 600M CL | AMEX BCP: NO Limit | Lowe's: 450k

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Re: Authorized User Effects


Closingracer99 wrote:

Chase doesn't factor in AU's so the 5/24 rule means nothing with AU's. AU's IMHO is pretty useless if your sole purpose is to build his or her credit profile. Might help slightly with some people with certain banks might go looking at it but You are better off getting a secured card and use it for history IMHO. I have a friend as an AU on 3 cards and its just so he can use credit vs paying cash and he pays be back later. I don't believe it really helps him out though but I will ask him to pull his reports I guess and check.


My recent experience seems to differ.  I was denied a C$R due to too many recent cards opened associated to my credit profile.  The 5th I had was an AU for the Chase Marriott card.  When I spoke to the credit specialist, she was cagey about the whole thing, but made it clear that they look at all accounts opened on the credit report.  Period.  She wouldn't confirm that the 5/24 rule exists, just repeated that there wasn't anything she could do.

EX08: 841 | TU08: 841
EQ08 (Bankcard Enhanced) 844 (out of 900)
FAKO TU: 803
Vantage 3.0 - TU: 817 - EQ: 818
Valued Contributor
Posts: 2,442
Registered: ‎03-20-2014

Re: Authorized User Effects


4thekill wrote:

I know adding a spouse as an AU can affect their scores via utilization, but are there other things to take into account when deciding what cards to put my DW on?

 

I am guessing also AAoA?


What about the effect on them applying for their own cards in the near future? Does it affect possible CL extended on a per bank basis? Does it count as a new card to say 5/24, or just in general when a bank considers how often someone is aquiring new credit?

 

I'd just like to understand AUs a bit more so any insight is appreciated. Thanks!

 


1.- If you add someone as AU on an Amex card, the card will report the 'date opened' when you requested, so the age on the card will be 0 days

2.- If you add on most other cards the 'date openened' will be the same as original card holder, so if the card is 5 years old, it will report that old

3.- If the age of the card is lower than AAoA, this will affect the recipient (will lower AAoA)

4.- Some lenders do use AU, others don't count them

5.- Chase do count AUs in last 24 months to check 5/24 rule

6.- If the recipient is just starting, it will help generating a FICO score. If they get a secured card, they need to wait 6 months for first FICO score, if they get a card as AU with long enough age, they could get a FICO score sooner

 

Example 1: I added my brother, who doesn't have SSN or ITIN to a few cards, after a few months he gets invitations from Cap1 (that was not one of the cards)

 

Example 2: I added my daugther to a few cards at age 16 (new cards, 0 age), after her 18th birthday she got Amex BCE with $6,000 limit (student reporting $10,000 income) and 768 EX FICO

 

Yes, from personal experience AUs help. In your case if card age (or if it is Amex) is lower than AAoA, then it will not help, with that high AAoA really will be no change.

 

Moderator
Posts: 15,381
Registered: ‎10-07-2014

Re: Authorized User Effects

While not the biggest deal, please keep in mind that this is almost a year old thread and some of the info is stale and users that are being replied to may not even be active on the forums any longer 

Valued Contributor
Posts: 2,442
Registered: ‎03-20-2014
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Re: Authorized User Effects

Sorry about that, I guess I have to pay more attention on post dates.

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