No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Hello everyone! So I just recently go my first credit card, http://ficoforums.myfico.com/t5/Credit-Card-Approvals/BOA-Partially-secured-99-down-500-limit/td-p/4... from Bank of America, for 99 down and 500 credit limit.
I was wondering if adding someone as an authorized user would help them build their credit too?
I asked the lady at BOA who helped me with my application and she said that it wouldn't get reported, only mine would. But I have been reading online and read that it would help their score. So is this lady wrong, or are these things I'm readin online about adding someone as an authorized user and helping their score wrong?
The person I would like to add is my sis and she is 18 so I'm thinking it would be a good time now to help her establish credit along with mine and then later after a year have her apply for her own?
Anyone ever do something like this?
Thanks,
Thanks! Even if it doesn't get reported I'm thinking it would help her if she were to try and get one on her own later on in a year or later right?
For example if she opens up an account at Bank of America too and tries getting a credit card and they will see that she is already on mine, and will atleast help get her a secured card too?
Anyone?? On my post above...
There are several considerations:
First is whether the creditor/product reports for an AU. I can't speak for the card you're talking about. It it doesn't report it definitely won't have any impact.
Next, even if it does report, TL's where one is an AU are not always considered. In such cases, being an AU on a card that reports won't have any impact.
It's also not simply a matter of being an AU or not being an AU. Whether X helps one's credit profile or not depends on the individual's credit profile and how the TL factors in. When considered it is basically considered like any other TL and all the standard factors mattter:
http://www.myfico.com/crediteducation/whatsinyourscore.aspx
Generally speaking: Positive payment history helps. Negative Payment History does not. Low revolving utilization can help with Amounts Owed. High revolving utilization will not. An older account can help to increase AAoA and Length of Credit History. A new account will drop AAoA.
@Anonymous wrote:Even if it doesn't get reported I'm thinking it would help her if she were to try and get one on her own later on in a year or later right?
If it does not report it will not have any impact for the AU. If it's not on a credit report then it cannot be considered as part of the report. Scoring models can only consider the data on a report.
@Anonymous wrote:For example if she opens up an account at Bank of America too and tries getting a credit card and they will see that she is already on mine, and will atleast help get her a secured card too?
Nope.
Well that answers that! Thanks takeshi