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New Visitor
hunnypuppy
Posts: 8
Registered: ‎07-19-2013

Authorized Users - Inhereting credit history (DCU and CapOne)

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.

 

Thanks

Regular Contributor
LLMT
Posts: 109
Registered: ‎04-29-2013

Re: Authorized Users - Inhereting credit history (DCU and CapOne)

That is crazy! Sorry to hear about the trouble! Yes, Capital One will report the same information on your wife's report (opening date and payment history) as it does for you. It does specify "Authorized User" though.
Moderator
09Lexie
Posts: 22,403
Registered: ‎09-13-2012

Re: Authorized Users - Inhereting credit history (DCU and CapOne)

Does your DW need her own TLs? Or will the AU be sufficient?
New Visitor
hunnypuppy
Posts: 8
Registered: ‎07-19-2013

Re: Authorized Users - Inhereting credit history (DCU and CapOne)

Good question that us something I was hoping someone could help me with.

First I heard having authorized user showing up on the report will nullify any positive effect in the credit score. Is that true?
I ask because it AU doesn't show up on her Amex line of credit where she was added as an AU years ago and has helped her get a great score.

Second I not sure if AU is same as TL. Anyone has any advice?

Also if its a TL, does that mean she will start over from scratch in terms of history?
Moderator
09Lexie
Posts: 22,403
Registered: ‎09-13-2012

Re: Authorized Users - Inhereting credit history (DCU and CapOne)

The question on whether she needs her own TL is for your U/W. Having an AU on your cr will not nullify any positive effect. Many parents add their children, spouses add each other to help start their cr.

AU is Authorized User, TL = Trade Line.
New Visitor
hunnypuppy
Posts: 8
Registered: ‎07-19-2013

Re: Authorized Users - Inhereting credit history (DCU and CapOne)

Thanks. Is there any downside to addin an AU?
Moderator
09Lexie
Posts: 22,403
Registered: ‎09-13-2012

Re: Authorized Users - Inhereting credit history (DCU and CapOne)

Increase util can lower your CS. Other than that, no. For the person being added as an AU, the temp ding a new acct does to their CS; Possibility of higher util; and lowered AAOA.
New Visitor
hunnypuppy
Posts: 8
Registered: ‎07-19-2013

Re: Authorized Users - Inhereting credit history (DCU and CapOne)

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?

Member
CreditSeductress
Posts: 17
Registered: ‎07-21-2013

Re: Authorized Users - Inhereting credit history (DCU and CapOne)

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.

 

 

Moderator
09Lexie
Posts: 22,403
Registered: ‎09-13-2012

Re: Authorized Users - Inhereting credit history (DCU and CapOne)

@CreditSeductress is correct on all points. I believe most lenders will run credit in order to be added as a joint applicant. Keep in mind, once added if you ever want to remove her, most lenders will close that acct and have you reapply. Also, there are some lenders that do not allow joint applicants - Chase, Amex are the two that come to mind.

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