Authorized user question

[Anonymous]

Thanks!

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@gdale6 wrote:

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@Anonymous wrote:

So if everyone will forgive my ignorance, if I am added as an authorized user to a discover card 16-17 years old with perfect pay history (afaik) with 8.2k balance and 16k cl it might help increase my score? I have a few collections still showing after finding multiple mistakes on my report along with a few legit items. In process of clearing all these up. Mid score is 618 for a mortgage. DTI is 4% now and this won't effect that much(might raise to 5-6%). 2 new cc's, both with balance about 10% yet to report (brand spanking new), one cl 300 the other 5k (might bring DTI to 6-7% at most). Will the 50% utilization hurt more than the long history of good payments or will the added history help? I am trying to get score up a bit to qualify for 3% down mortgage and maybe a better rate. When my new cards report I expect 20-40 point increase. Removing baddies should help a bit also. Will this help?

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I would say it would not help but hinder due to the high utilization on it. You want old accounts for AU that are rarely used or show a small balance relative to their CL. Mortgage lenders are going to discount AUs anyway so I would not muddle the waters with one, you have to stand on your own two feet with them.

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[Anonymous]

The only reason I'm considering signing on as an AU is to get a better rate on the cc I'm about to apply for.
I'm improving my overall credit profile to get my first home. They look closer at the report and score when it comes to mortgages, from what I'm hearing and mostly at the score for cards.