09-02-2012 08:09 PM
09-02-2012 08:15 PM
In my experience AU can get your foot in the door with subprime lenders. My son started with no credit score, CapOne had denied him for an unsecured credit card. Add 2x AU's on capone cards a few month later he got a pre-approved offer for a CapOne non-rewards card, approved for $500 CL. card.
AU's are ignored by most prime lenders internal scoring systems. But may have some benefit for your FICO score but a high fico score with a thin file won't get you approved.
09-02-2012 08:19 PM
AFAIK lenders won't pull an AUs credit report to add as an AU. The only exception to this may be AMEX, as I've heard their AU system operates a little bit differently. An AU account will most definitely improve your credit score, if the account you (or someone else) become(s) an AU on has an entirely positive history, and if the age of that account is greater than the new AU's AAoA.
Remember when you (or someone else) become(s) an AU, the entire history or the account is inherited. Any late payments will be added to the new AU's credit report as well as the full positive history of the account.
As far as the effect on AAoA, if it is greater than the new AU's AAoA then the person's AAoA will go up, and if it is less than the new AU's AAoA their AAoA will go down (possibly resulting in a credit score drop)
09-02-2012 08:30 PM
Your credit will not be affected if you add an AU to your account, only theirs will be (as the account is already on your report).
If your history with the account is good, and free of any negatives, and the account is older than their average age of accounts, their score will go up.
If your history with the account is riddled with late payments, and you add them as an AU, their score will go down because of all the lates on the account.
09-02-2012 08:35 PM
09-02-2012 08:40 PM
When you are added as an AU, you don't get the card holders full credit report, just the history of the one card you are an AU on. If the card is 3 years old you gain 3 years of history as it shows on the person account, they could have every other card maxed out, it doesn't matter.
09-02-2012 08:40 PM
No problem. Sorry it took me so long to explain haha.
This thread may be of some use to you if you end up being a myFICO lurker like all the newcomers end up being. It has all the most common abbreviations in it that are used on the forum. I've read through that thing so many times and there's still a few I don't always pick up on immediately.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
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.