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Authorized User

Frequent Contributor

Authorized User

I have been reading and searching on the forum here. I've also searched on the net. I have a question and want to make sure I get the right answer. If my husband adds me as an authorized user on his credit card we both pretty much mutually use and budget for together, will that be reported on my credit report, to help with my AAoA, the good payments, and everything else? I understand as an authorized user I can be dinged for a late payment, but will I get the benefits too, of length and credit limit ratio? I don't want to take a step back on my reports, I am just wondering if this can be another step I can take in the right direction. Thank you!

EQ. Starting Score 08/19/12: 545
EQ. Current Score 09/02/13: 611
Goal Score: 700


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6 REPLIES
Moderator Emeritus

Re: Authorized User


leah5570 wrote:
I have been reading and searching on the forum here. I've also searched on the net. I have a question and want to make sure I get the right answer. If my husband adds me as an authorized user on his credit card we both pretty much mutually use and budget for together, will that be reported on my credit report, to help with my AAoA, the good payments, and everything else? I understand as an authorized user I can be dinged for a late payment, but will I get the benefits too, of length and credit limit ratio? I don't want to take a step back on my reports, I am just wondering if this can be another step I can take in the right direction. Thank you!

Yes it can help you IF the account is older than any of yours, IF the payment history is long and clean, IF the utilization is very low, and IF it will report to the CRA's. Not all cards will do this. You need to ask the company first. You will inherit the entire history of this account. One caveat however; if this account starts to go south your credit will be affected as well. Keep that in mind.

 

 

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7/09 TU-742 EQ- 779
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9/09 EX pulled by lender 802

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Frequent Contributor

Re: Authorized User

Ok. Thank you so much! I was reading a Liz Weston article and she said it won't help based on the FICO 08 rules. Then I noticed it was published May 2008. I read an article written August 2008 and it stated there was a change to where FICO can tell if it legitimate, like husband and wife. So hopefully it will pan out for me. lol Thank you again marinevietvet!

EQ. Starting Score 08/19/12: 545
EQ. Current Score 09/02/13: 611
Goal Score: 700


Take the FICO Fitness Challenge

The effects of waking a sleeping giant...
Senior Contributor

Re: Authorized User

yes, it will help you.  the card that i am AU on is only 8 months older than my oldest card, but it's still helping, because it has a much higher limit than any of my own cards.  once i get the balance down a little further, it will help even more Smiley Wink
Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 755. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.
Valued Contributor

Re: Authorized User


leah5570 wrote:
Ok. Thank you so much! I was reading a Liz Weston article and she said it won't help based on the FICO 08 rules. Then I noticed it was published May 2008. I read an article written August 2008 and it stated there was a change to where FICO can tell if it legitimate, like husband and wife. So hopefully it will pan out for me. lol Thank you again marinevietvet!

 

Hi leah...it was proposed that authorized user cards no longer count in your credit score, but that idea was dropped. There are legitimate reasons for AUs on cards, and I think there was an outcry from those who use the AU legitimately.

 

If this card is older than your average of accounts, then it will help you. Even if it is a newer card, it won't help with your average age, but it will still give you positive credit. My husband and I are AUs on each other's cards.

Frequent Contributor

Re: Authorized User

Thank you for your comments! His oldest active credit card is 3 years old. My only two active credit cards were opened in July and December 2009. Thank you again!!

EQ. Starting Score 08/19/12: 545
EQ. Current Score 09/02/13: 611
Goal Score: 700


Take the FICO Fitness Challenge

The effects of waking a sleeping giant...
Valued Contributor

Re: Authorized User

Just to add something here...

 

In case that account that you're an AU on ever goes bad, and it affects your score, you can have that account removed from your reports as you have no responsibility for repayment.  You would dispute the account as "not my account" with the CRAs, and poof...it's gone.