07-19-2013 05:54 PM
I've read the forums for various thread on Authorized Users but am unable to get a clear answer for my situation.
My wife needs to have 3 credit lines to apply for a mortage. Current she has a 800+ score and only one credit card (AMEX), where she is an authorized user. (kinda stupid right to have to open new credit cards to get a loan when your score is 800+ with just 1 card - it's like the country wants everyone to die with debt).
My question is specific:
1. Digital Federal Credit Union (DCU) - does anyone know if adding an authorized user on a DCU card will have her inhereit my credit history and help her score? I spoke to a rep they said that it will only be reported as an authorized user to the bureau but will not build her history. I don't understand what that mean. How can it be reported every month but not impact the score?
2. Captial One - Same as above, will she inherit my history as an AU or will she just get the benefit starting today
I am losing my mind trying to figure out how to get her 2 additional lines of credit > 24 months history so she can use the damn near perfect score to get a loan in a damn near broken system.
07-19-2013 08:21 PM
07-19-2013 08:39 PM
07-20-2013 05:14 AM
07-20-2013 11:44 AM
07-20-2013 01:00 PM
07-21-2013 11:37 AM
Thanks, interestingly I just thought what I made my spouse a Co Borrower or joint holder instead of an Authorized User.
How would that impact the credit history report?
Would she get my entire history (i.e. same opening date) and any difference in the score? I'm assuming that would mean a hard pull on her credit which would ding her score, but from a loan perspective wouldn't it better to have your own / joint account instead of an AU account?
07-21-2013 01:31 PM
From a Mortgage stand point, authorized user accounts aren't counted as trade lines anymore. The credit score isn't affected one way or the other because you can't decipher how many points the AU accounts helped or hindered. So no points can be taken away. If that makes sense.
On the other hand...Yes, it would be more beneficial to add your DW as a Joint Account Holder, which would count as a trade line, because she will be held equally responsible for the account. With an AU account, only the primary account holder is responsible....Period! You must also make sure the balances are paid down. If they are close to the credit limits, that will sink her score. So make sure you are not just helping her by adding the trade lines, but also by keeping the balances down.
She would still get your history either way. Same account opening date, but the date reported will be in 2013. I'm not sure if her credit will be ran, but her personal info will be needed for credit reporting purposes.
P.S. Make sure whatever cards you put her on will let her be a Joint Account Holder, not just an AU! I'm reiterating this because not all credit card companies add Joint Acct Holders, only AU's.
Hope this helps, as this is my 1st post. I Love this Forum.
07-21-2013 01:48 PM
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.