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Help getting my brother started in credit

Valued Contributor

Re: Help getting my brother started in credit


CreditChampion wrote:

Discover and Citi count AU from recent experience. I got the more/forward with 5 months of personal credit history. Chase defiantly ignores AU accounts.


good info credit champion.

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Message 11 of 22
Established Member

Re: Help getting my brother started in credit

I thought I read that Authorized Users don't get reported to credit report/scores because of exploited loopholes in the past?

So this is an option now? Is it only within immediate family? What if my fiancee adds me to her BofA Amex?

Starting Score: (USAA FAKO scores)
ex:579 eq:585 tu:603

Current Score: (7/2012) ex: 585 eq:663 tu:603
(8/2012) ex: 657 eq: 673 tu: 671

Goal Score: 850+


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Message 12 of 22
Valued Contributor

Re: Help getting my brother started in credit


burnednotice wrote:
I thought I read that Authorized Users don't get reported to credit report/scores because of exploited loopholes in the past?

So this is an option now? Is it only within immediate family? What if my fiancee adds me to her BofA Amex?

newest fico scoring models may ignore/discount au cards.  Originally was going to ignore it completely but outrage on what it would do to stay at home spouses made fico change it.  If you and fiancée share address, it should count but may be discounted/ignored by individual lenders.  That's why it is important to know who discounts or who doesn't.

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Message 13 of 22
Moderator Emeritus

Re: Help getting my brother started in credit


Crashem wrote:

burnednotice wrote:
I thought I read that Authorized Users don't get reported to credit report/scores because of exploited loopholes in the past?

So this is an option now? Is it only within immediate family? What if my fiancee adds me to her BofA Amex?

newest fico scoring models may ignore/discount au cards.  Originally was going to ignore it completely but outrage on what it would do to stay at home spouses made fico change it.  If you and fiancée share address, it should count but may be discounted/ignored by individual lenders.  That's why it is important to know who discounts or who doesn't.


All FICO models, including FICO08, include AU's.

Message 14 of 22
Valued Contributor

Re: Help getting my brother started in credit


MarineVietVet wrote:

Crashem wrote:

burnednotice wrote:
I thought I read that Authorized Users don't get reported to credit report/scores because of exploited loopholes in the past?

So this is an option now? Is it only within immediate family? What if my fiancee adds me to her BofA Amex?

newest fico scoring models may ignore/discount au cards.  Originally was going to ignore it completely but outrage on what it would do to stay at home spouses made fico change it.  If you and fiancée share address, it should count but may be discounted/ignored by individual lenders.  That's why it is important to know who discounts or who doesn't.


All FICO models, including FICO08, include AU's.


I thought fico08 can ignore/discount au accounts if they determine you are "piggybacking" credit. The issue is that it is unclear what determines piggybacking.  Let me know if this is incorrect marine.  Also, link below seems to suggest even legit use of au accounts could be discounted with fico08?

 

http://www.bankrate.com/brm/news/cc/20080812-authorized-users-a2.asp

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Message 15 of 22
Highlighted
Moderator Emeritus

Re: Help getting my brother started in credit


Crashem wrote:

I thought fico08 can ignore/discount au accounts if they determine you are "piggybacking" credit. The issue is that it is unclear what determines piggybacking.  Let me know if this is incorrect marine.  Also, link below seems to suggest even legit use of au accounts could be discounted with fico08?

 

http://www.bankrate.com/brm/news/cc/20080812-authorized-users-a2.asp


But that's not the same as a simple AU. And how would that be determined anyway?

 

Bankrate is a good source but in this case they are wrong. I was told by the previous administrator of this site that all FICO models include AU's. Period.

 

 

 

Message 16 of 22
Valued Contributor

Re: Help getting my brother started in credit

There is a quote from fico spokesperson on 2nd page:

 

If piggybackers were gaming the system, could people still do so by getting family members with great credit to add them as authorized users?

 

 

Asked about legitimate authorized users inflating their FICO scores in this way, Quinn responded in an e-mail: "The innovation we are adding to the FICO 08 model will help control for the kind of score tampering you describe. The details of how it works must remain confidential."

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Message 17 of 22
Regular Contributor

Re: Help getting my brother started in credit


Crashem wrote:

Add him to Amex green, discover, and bofa Amex.  Once he is added, I would verify that they show up on his credit report.  Amex green for sure will.  Once you get Amex green card, make sure to register Amex green on website with his own online ID.  As for other cards, it would help if you and him share an address currently but any past address on the credit report is okay too.  Might need to make a purchase on eother those cards to get them to report would help too.  Once all are reporting on his creditreport, you want to apply to card issuer who doesn't discount au accounts too much.  If I remember correctly, Citibank is good choice.


Thanks for all the help Crashem. I have added him to all three. I did have to change my profile address for BoA and Discover since I bought my own place last year and he is still living at home. In a few months try to get him 2 of his own cards and just let it start aging with him. Really appreciate the help! Thanks again.

What's In My Wallet:American Express Starwood Preferred Guest Business Card, American Express Costco True Earnings, Citi AA Visa, Barclays US Air, Citi Prestige
What's In My Sock Drawer: Chase Sapphire Preferred, Discover More, Bank of America Accelerated Rewards AmEx, SME FCU Visa
Message 18 of 22
Valued Contributor

Re: Help getting my brother started in credit

Remember you need to check they are reporting.  His scores will probably be crazy high but don't let it fool you.  He will still basically have thin and beginner credit file.  Not sure if you need to change address as past matching address may count too, but safest is to have same address.  Remember he has no info in credit file.  So easiest thing would to have him use your address by having Au cards sent to your address.  His initial apps for himself should be your address as well.  Once he has his own first cards, he can switch them to wherever once they report for a month or two.  Remember to create online account for him in Amex with au card.

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Message 19 of 22
Regular Contributor

Re: Help getting my brother started in credit


Crashem wrote:

Remember you need to check they are reporting.  His scores will probably be crazy high but don't let it fool you.  He will still basically have thin and beginner credit file.  Not sure if you need to change address as past matching address may count too, but safest is to have same address.  Remember he has no info in credit file.  So easiest thing would to have him use your address by having Au cards sent to your address.  His initial apps for himself should be your address as well.  Once he has his own first cards, he can switch them to wherever once they report for a month or two.  Remember to create online account for him in Amex with au card.


Hi CrashEm, I will try to do that. AmEx said they couldn't send to the parents address so I will have them send it to me and just make sure to apply using my address for his own card in a few months then change the address online. Thanks again.

 

What's In My Wallet:American Express Starwood Preferred Guest Business Card, American Express Costco True Earnings, Citi AA Visa, Barclays US Air, Citi Prestige
What's In My Sock Drawer: Chase Sapphire Preferred, Discover More, Bank of America Accelerated Rewards AmEx, SME FCU Visa
Message 20 of 22