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New Contributor
Posts: 59
Registered: ‎08-18-2012
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Authorized User PROS AND CONS

How does being an authorized user affect your CR? What are some of the The pros and cons.
I'm considering having my dad put me on as an authorized user on one of his credit cards that he doesn't really use a lot. Will this raise my AAoA? If it does how does it get factored in? Since im only 20 I have a very thin file and short AAoA these 2 are the only things hurting my score according to myfico scorewatch (758 score). Since my dead really uses this card I'm not worried about util.

Thanks in advance
Frequent Contributor
Posts: 428
Registered: ‎08-08-2013
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Re: Authorized User PROS AND CONS

I was recently denied for a student loan because of my length of credit history :smileysad:. If the card carries a low balance, has a good sized credit limit, and has been open for a decent amount of time than your credit score and appearance to lenders and creditors should benefit accross the board.

AMEX PRG NPSL, CITI DIAMOND PREFERRED 20K, FIDELITY AMEX 20K, CHASE SAPPHIRE PREFERRED 15K, CITI DOUBLE CASH 11.9K, BARCLAYCARD REWARDS MASTERCARD 6200, AMEX DELTA SKYMILES GOLD 6K, CHASE MARRIOTT PREMIER 5K, CAPITAL ONE QUICKSILVER 3K, AMAZON STORECARD 6K, VICTORIAS SECRET 1050, EXPRESS NEXT 650
New Contributor
Posts: 59
Registered: ‎08-18-2012
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Re: Authorized User PROS AND CONS

I am shocked you were denied. thats a first for me never heard that before usually the denial is because of a very short length.

Frequent Contributor
Posts: 428
Registered: ‎08-08-2013
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Re: Authorized User PROS AND CONS

I think u mis-understood me... I said i was denied because of the length of my credit history.. but failed to mention that length is short... I'm looking for someone to piggyback off of now with a longer history to make me look better to Sallie Mae. Seems more reasonable than asking someone to co-sign

AMEX PRG NPSL, CITI DIAMOND PREFERRED 20K, FIDELITY AMEX 20K, CHASE SAPPHIRE PREFERRED 15K, CITI DOUBLE CASH 11.9K, BARCLAYCARD REWARDS MASTERCARD 6200, AMEX DELTA SKYMILES GOLD 6K, CHASE MARRIOTT PREMIER 5K, CAPITAL ONE QUICKSILVER 3K, AMAZON STORECARD 6K, VICTORIAS SECRET 1050, EXPRESS NEXT 650
Super Contributor
Posts: 8,090
Registered: ‎06-19-2013
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Re: Authorized User PROS AND CONS

I think au and fico scoring can be an bit funky. From my personal experience depending on the fico version they are using it can help an bit , but other times it doesn't really do anything. 



EX Fico 791 1/7/15 Fako 801 CS/Credit.com 11/24/14
EQ SW 823 quizzle fako 807 1/7/15
TU Fico Barclay's 1/1/2015 802 TU fico walmart 1/5/2015 800 Fako 796 Creditkarma 12/24/2014
New Contributor
Posts: 59
Registered: ‎08-18-2012
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Re: Authorized User PROS AND CONS


mongstradamus wrote:

I think au and fico scoring can be an bit funky. From my personal experience depending on the fico version they are using it can help an bit , but other times it doesn't really do anything. 


Are you talking about a lender looking at my report ?

Super Contributor
Posts: 8,090
Registered: ‎06-19-2013
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Re: Authorized User PROS AND CONS


mjnierva23 wrote:

mongstradamus wrote:

I think au and fico scoring can be an bit funky. From my personal experience depending on the fico version they are using it can help an bit , but other times it doesn't really do anything. 


Are you talking about a lender looking at my report ?


well i was referring to credit cards and fico scores in general. My tu score from my fico is over 100 points higher than my walmart fico TU score. They use different versions of fico scores. I think the TU 08 score that walmart uses doesn't take weigh AU accounts as much.



EX Fico 791 1/7/15 Fako 801 CS/Credit.com 11/24/14
EQ SW 823 quizzle fako 807 1/7/15
TU Fico Barclay's 1/1/2015 802 TU fico walmart 1/5/2015 800 Fako 796 Creditkarma 12/24/2014
New Contributor
Posts: 59
Registered: ‎08-18-2012
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Re: Authorized User PROS AND CONS

To be honest im not really worried about my score as long as it doesnt hurt it, if it doesnt factor in i dont really care. I just feel itll be better in Lenders eyes if my AAoA is higher and itll also put another account in good standing on my file as well. But i could be wrong i really dont anything about how lenders take into consideration AU accounts. Thats why i came here lol

Super Contributor
Posts: 8,090
Registered: ‎06-19-2013
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Re: Authorized User PROS AND CONS


mjnierva23 wrote:

To be honest im not really worried about my score as long as it doesnt hurt it, if it doesnt factor in i dont really care. I just feel itll be better in Lenders eyes if my AAoA is higher and itll also put another account in good standing on my file as well. But i could be wrong i really dont anything about how lenders take into consideration AU accounts. Thats why i came here lol


I am not so sure about loans, better wait for somebody who is more well versed on the intricacies of fico scoring to chime in.



EX Fico 791 1/7/15 Fako 801 CS/Credit.com 11/24/14
EQ SW 823 quizzle fako 807 1/7/15
TU Fico Barclay's 1/1/2015 802 TU fico walmart 1/5/2015 800 Fako 796 Creditkarma 12/24/2014
Moderator
Posts: 26,770
Registered: ‎09-13-2012
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Re: Authorized User PROS AND CONS

Certain lenders do not take AU accounts into consideration. If your goal is to obtain a longer AAOA, pick one card with the longest history, lowest bal and highest CL. The pro would be a boost to you if your other profile is good. You can calculate the AAOA but keep in mind, AAOA is roughly 10% of your score. The lower util will be where you would see a larger boost.

The con would be if the cc has negative history, high util etc.

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