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Authorized User account won't effect score?

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bear812c
Regular Contributor

Authorized User account won't effect score?

I want to add my husband on to my Credit ONe Bank cc so he can piggy back my AAofA. i called CreditOne and asked if they report the entire account history or if they just start reporting it from the date that I add him onto my account (like a new account). I guess she didn't understand my question even after explaining it to her several different times, clearly she is not credit reporting savy. She put me on hold to ask a supervisor and came back to tell me that, "Yes the account would be listed on his credit but it would not effect his score at all." So again she didn't answer my question and left me with more questions. I think I'll have better luck getting my questions answered here than I will calling them back! So here it is:

1. If adding my husband to my CreditOneBank cc as an Authorized user, will the entire account history be listed on his report or will it start reporting as a new account from the date I add him as an AU?

2. Per their website, they do report AU's to the credit bureau if they're your spouse but is it true that the account will have no impact on his score becasue he is an only authorized user? I don't see how that is even possible. Seems to me every little thing effects my credit score.

Again, I am trying to help improve his average age of accounts since he has a limited credit history and this account is in perfect standing and is many years old. 

 

Message 1 of 5
4 REPLIES 4
09Lexie
Moderator Emerita

Re: Authorized User account won't effect score?

The CSR may have been referring to lender's internal scoring models that discount AU's. Chase, for one will not use the info if it's coded as an AU. 

In general, being added will help a FICO assuming the account is in good standing and older than his other accounts. 

If the lender discounts AUs, then it will not help with approvals. 

Message 2 of 5
bear812c
Regular Contributor

Re: Authorized User account won't effect score?

I'm so confused! What is an internal scoring model? Does that mean when they report the account then it really won't affect his score?

Message 3 of 5
09Lexie
Moderator Emerita

Re: Authorized User account won't effect score?


@bear812c wrote:

I'm so confused! What is an internal scoring model? Does that mean when they report the account then it really won't affect his score?


Lenders use their internal scoring and your FICO scores for applications. If a lenders internal scoring removes AU history, then his/her scoring will be impacted. It's not all but more and more are looking for the individual history. 

The example I gave was Chase. Not all lenders discount AUs. 

Message 4 of 5
Sonic98
New Contributor

Re: Authorized User account won't effect score?

I noticed that when my friend tried to add an AU to her Discover Card, it asked was the person a spouse. That's the first time I've ever seen that, but it did say it asked because of a federal law

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