Back to back new accounts

Poppa · ‎05-11-2016

My fiancee's parents decided to add her as an authorized user on some new credit card that's supposed to save money on a car rental. They are convinced it won't end up on her credit report or affect her score. Apparently they've done it with another daughter some years ago.

The problem is that her credit score is around 600 and 630 and she just opened a new account yesterday.

I'm convinced this will tank her score and we will no longer qualify for an FHA loan. I was sure the new account she just opened would have raised her score possibly over the 620 mark we were shooting for. She waited 5 months since her last secured card to open an unsecured card so her score wouldn't fall and it's her 3rd card.

These are CK scores and all we have to go on. No FICO scores will generate for a couple months.

They didn't ask us about this choice they made for her. I'm beside myself. I've been reading up on how to build credit for the last 6 months and it seems in one motion our work has been erased and we are going back to were we started. I was hoping to go for a loan for a house before our lease runs out October.

It will end up on her credit no? Is there some way they have found to giver her a card with her name on it and it not report? I just can't see how.

Her credit profile is only 4 months old.

FICO SCORE 08 - TU 810 - EX 807

12/15 - First Tradeline - 12/17 - 800 Credit Score - 3/18 - Homeowner

Anonymous · ‎05-11-2016

My sister is an AU on several of my accounts and the only ones that show up on her report are the ones that asked for her SSN (Cap 1 and Citi)

Sorry about the rest. I hope it doesn't affect your mortgage.

Pway · ‎05-11-2016

If you are applying for a Mortgage, no new accounts should be open at all unless the underwriter has requested it. In you and your wife case you guys may just need to wait a little while longer. You should not be going off CK scores at all. No one uses those scores when making loan decisions, I only use them to monitor my reports.

Some lenders does not report AU to cb, while others does. I am not 100 percent sure but I am sure someone will chime in.

Thank you for the wealth of knowledge I have learned from these forums. I am logging off as of November 9, 2022. I wish everyone great success.

Anonymous · ‎05-11-2016

The chances that the new card reports on her files is very high though it's possible that it won't. What was the point of adding her in the first place if not to affect her credit? Creditors don't need SSNs for a card to report. If I were you I would have her immediately tell her parents to remove her as an AU. Besides your mortgage issue the fact that they added her without her knowledge is a BIG problem and it needs to be nipped in the bud now.

Poppa · ‎05-11-2016

Priceline Visa is the lender. Anybody know if they report AUs?

Originally our plan was to wait another year and a half but our lease is over in October and we have such terrible neighbors that I wanted to consider getting out sooner. I was hoping an FHA loan was different than a regular home loan in regards to newly opened credit. I wasn't really thinking I guess.

The main issue though is her credit score and I know we can't put any real faith in a CK score but it has been pretty helpful in getting us cards so far so I feel it's not too far off.

FICO SCORE 08 - TU 810 - EX 807

12/15 - First Tradeline - 12/17 - 800 Credit Score - 3/18 - Homeowner

Anonymous · ‎05-11-2016

@Poppa wrote:
Priceline Visa is the lender. Anybody know if they report AUs?

Originally our plan was to wait another year and a half but our lease is over in October and we have such terrible neighbors that I wanted to consider getting out sooner. I was hoping an FHA loan was different than a regular home loan in regards to newly opened credit. I wasn't really thinking I guess.

The main issue though is her credit score and I know we can't put any real faith in a CK score but it has been pretty helpful in getting us cards so far so I feel it's not too far off.

Afaik, Barclays report authorized users to credit reports. At least they do with the two that I have for my g/f.

Poppa · ‎05-11-2016

The reasoning behind adding her was that we need a rental car next month for 11 days and her parents found some way of getting it much cheaper by getting a Priceling Visa. They live in another state and you apparently can't rent a car for someone else. I said no amount of savings is worth a 40 point score drop. I agree it's a big problem! I couldn't believe it.

FICO SCORE 08 - TU 810 - EX 807

12/15 - First Tradeline - 12/17 - 800 Credit Score - 3/18 - Homeowner

Anonymous · ‎05-11-2016

@Poppa wrote:
The reasoning behind adding her was that we need a rental car next month for 11 days and her parents found some way of getting it much cheaper by getting a Priceling Visa. They live in another state and you apparently can't rent a car for someone else. I said no amount of savings is worth a 40 point score drop. I agree it's a big problem! I couldn't believe it.

There are a lot of ways to get discounts on car rentals that don't involve getting a credit card. I know you're in a difficult position but she needs to handle this in a very firm manner. If they do this, it won't be the only thing they do that affects her life without her knowledge. No one should ever touch your credit without your consent.

CreditDunce · ‎05-11-2016

If it reports and you don't want it, you should be able to dispute it as not yours. The CRA's should then permanently remove the AU account from the report.

I don't normally recommend you purchase your scores from MyFico. However, if you are serious about buying a house in 6 months, then you need to know where you stand. VS 3 scores may sort of follow FICO 8, but VS 3 is really different than the mortgage scores. Another option may be to have your mortgage lender pull your scores. It will cost you the HPs and an application fee, though.

dragontears · ‎05-11-2016

Ok first deep breath, this is not as bad as it first seems.

A new account is not likely to cause a 40 point drop in score but it does cause some damage; however, with your current timeline for getting a mortgage you have time to fix this.

Start by having her removed as an AU from this account, then if the tradeline is still on her reports have her dispute it as "not mine", that should get it deleted as if it never happened.

Generally the advise is not to app for anything 6-12 months before going for a mortgage but that is not a set in stone rule, it just makes it a little more complicated in going through underwriting (you have to provide a letter of explanation for recent inquires, the definition of recent varies by lender)