How much did BECOMING an authorized user raise your score?

[Anonymous]

2 things

1) The CRA's have really tried to greatly stem the reporting of AU accounts because of the abuses,

where folks were basically 'selling' the ability to piggyback on an unrelated person's good credit.

So that's why the address and sometimes 'name' and other less obvious data points are used to decide

whether or not to report an AU.

'Repair' companies would recruit 'good credit' ppl who would add a 'paying' 3rd party on as a AU for a few months

for a 'fee'....the scoring models caught on and many vendors are taking steps to protect themselves against what many

could describe as 'liar reporting' in the 1st place.

The point was to cut down on exactly what the OP is trying to accomplish 'fooling' the formula into seeing a better

qualified candidate than the person, really.

2) For a file as 'thick' as the OP the effect won't be like that of a brand new file or a long time dormant file getting back in the game.

If you aren't attempting deceive your way into a 'quickly' closing mortgage or something ...

What's the BIG DEAL of trying to steal ....Mom and Dad's profile shine?

You've got scores in the mid 600's...that's 'who' you are...that's how you've managed yourself so far..

No big deal....PAY down your debt, as you're doing, and your scores will be fine...mid 600's to the mid 700's isn't all that difficult

if you're maintaining your balances and paying your bills and once your in the mid-upper 700's you won't be declined for much

and the better rates are the same at upper 700's as they are above 800.....

Everybody is in a hurry...chill out pay down your debt, give it a little timeand you'll be just fine.....

80% debt ratios looking desperate to borrow and run 5 new accounts within 11 months is a BIGGER issue than worrying about

a piggyback rides on the parent's magic credit carpet,  just to do WHAT grab more crads and debt...

Pay it down let your credit grow without killing it and YOU will EARN your credit keep IMO managing what you already have will get you

there to many times in today's world we want to skip steps and get medals and trophies earlier than we're due...

I mean no offense and no harm...I'm just trying to help you see, this thing is right in your hands...

You've got aged accounts and if you managed to debt ratios on the 'true' accounts you own....you'll be just FINE

But gunning for huge jumps on Moms n Pops credit profile is a waste of time n energy that could be used making sure that

your reported debt-ratios are way better than 80% ...that's where your credit rocket juice is, friend.

*Even for a youngster riding a parents coattails is really just to get the kid STARTED once they can get their own accounts....'that's' where

the rubber meets the road...the OP's profile isn't 'new' anymore it's in need of refinement not lift off, you're uo just ight the ship and you're good..

[Anonymous]

Thanks for the replies guys... Keep em coming

*Update*

Well the new account from Chase showed up on my experian report.  The age of the card was a litle over 12 years, and suprisingly my parents only have a 22,000 credit limit, with an 800+ fico, so It didn't quite double my total credit limit, but the age of that acount raised my average age of accounts by about 1 year and 1 month. Between the 5000 I paid, and the total credit limit increase from becoming an AU my total utilization dropped down to 38%, so pretty significant. So even though I don't live with them It did get reported to experian, and I assume will also be reported to equafax and transunion. I wonder if it was because in our credit history it shows us having lived at the saee address years ago??? Or if it was because I already had 2 Chase cards and was in their system???

So far the benefit of becoming an AU on their account has raised my experian score 27 points!!!

While I did want this in the hopes of being able to open a new credit card or two, that was so I could transfer most or all of my 2 Amex card balances and mabe some others. The promotional period on both Amex cards ends this month or next, so I'm about to get hit with a lot of interest charges. So if I can do some balance transfers that will let me put my money towards the actual debt, and not interest.  So not looking to get new cards to go on a spending spree, but rather to avoid wasting money that could go towards the actual debt.

And since it was my parents card, I have zero guilt. I'm not gaming the system IMHO, I'm using it as intended because they're family, and honestly had I known about this years ago, I would have tried to get them to do it while I was building credit, so I feel like I'm just making up for what I did't get years ago.

Thanks,

D

[Anonymous]

Congratulations on your success, with an emphasis on "your", since you are the one who took the time to get informed on the process and find out what can be done to improve your score. Keep up the good work!

[CreditDunce]

Congratulations with the EX score bump.  I am sure Chase is reporting the AU account to all three major CRAs.  The question is if the other CRAs will match and allow the AU account to be added to your report.  

If you do not have an installment loan, you might want to read up on shared secured loans.  Adding an installment loan with low utilization can boost your score 20+ points.  There are several threads in the understanding FICO forum. 

While it is off the subject, I would recommend you close any sub-prime cards (e.g. FP).  Take the money you were going to pay in fees and use it to reduce your debt.   You have plenty of credit cards to build a good credit score.  There is no need to get more cards if you get your debt under control.  Once you are PIF each month, it might be time to consider having the AU account removed (assuming you will not be house hunting, etc).  With the AU account, your FICO score will drop every time your parents make a large purchase.  Since they PIF each month the drop will be temporary.  However, it could surprise you at a bad time.

[Anonymous]

I have a friend with a very similar situation, thin file and a few negatives.

He recently became an AU on a Discover (over 20y old) and a Chase account (over 10y old) both with quite high limits. 

He no longer lives with his parents and despite that, both Chase & Discover reported promptly to all three credit bureaus. He saw an increase of roughly 30 points across the board. (620 to 650)

[Anonymous]

Thanks... Ya I've done a lot of research the last 2 years. After college I went through a period of depression, and my family didn't really understand what was going on and decided to cut me off rather then help me out, so I destroyed my credit trying to survive untl I pulled myself together (which I eventually did). I had no idea how important a good credit score was, and just what I had lost. I'm trying to get a hobby business off the ground, and dig myself out of another depressive episode, so this is another little ray of hope  

Hopefully the other CRAs will allow it. I had assumed they had to as long as the Card issuer reports it. Is that not the case? 

[Anonymous]

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@Anonymous wrote:

And since it was my parents card, I have zero guilt. I'm not gaming the system IMHO, I'm using it as intended because they're family, and honestly had I known about this years ago, I would have tried to get them to do it while I was building credit, so I feel like I'm just making up for what I did't get years ago.

Thanks,

D

---

Dude it's gaming but like they say if you ain't cheating you ain't trying....

In all fairness if they ALLOW you to manipulate the system ...manipulate it

C'mon the secured loan is basically 'gaming' the system...we all know it but hey if the ref doesn't call it...it ain't a foul, bro.

if the system allows a 18 y.o. to piggyback on credit he/she obviously couldn't have built, the system allows for loopholes,

you found one, you took it.....let's just say that but all this NONSENSE about 'family' creditworthiness being somehow something 'owed' us is just silly.

It's a loophole, a backdoor, a hook-up you can exploit go ahead get your freebie but don't pee on folks and tell 'em it's raining.....

[CreditDunce]

There are a couple of hurdles to get over:

1) The CCC has to report the card to the CRA

2) The CRA has to match it to your credit report

3) The CRA's fraud algorithms have to decide if the AU account should be added to your report

4) The credit model has to allow the AU account.  Even if the AU account shows up on your credit report, doesn't mean the credit model will actually use it.  For example, Chase is known to exclude AU accounts when they calculate your credit score.

Just because one CRA is able to match the AU account to your credit report, doesn't mean the others will.  Having the same last name and/or address helps.  However, it isn't a guarantee.  Even if the CRA knows who the AU account belongs on, they are not required to add it.  It is up to their discretion.  None the less, if one adds it, the others will probably add it, too.  If they don't, you may have to be a little more creative to build credit history.  However, you will be able to do so.  Most baddies drop off after 7 years.  Your credit score will sky rocket after the last baddy falls of.  Just be very careful about judgements and tax liens.  They aren't things that are easy to recover from.

[Anonymous]

If it was a friend's account, or I paid someone to add me as an AU then I'd consider that gaming the system. However since I'm family, and especially since the card issuers often have incentives for adding AUs, I feel as if I'm within the system as it is intended to function. 

@Creditdunce

Thanks for the info. Luckily I have no baddies at the moment, other then not having a very long credit history and having fairly high utilization. No derogatories or late payments. I did have one late back in 2013 but I was able to have that removed from my reports. My hope is the automated instant approval algorithims don't see the AU and just factor it as one my normal accounts, but no idea if that is how it work. I wouldn't be surprised though if a manual review weighted the AU account less, or not at all.

Oh and for the person who suggested dropping the subprime card...

Yes, intend to do that now that my AAOA got a bump. I may hold it for another few months, but by this summer or fall at the latest, I think it will be gone. First premier has finally outlived they're usefulness

[Anonymous]

My son is building credit ( not rebuilding) and I put him as an authorize user on my 26K Cap One card!  His score increased almost 30 points the first month and he recently secured a Discover It card SL 2400, Cabela 2000.  He has two CapOne accounts and no secured cards.  Amex is next on his radar.  So my experrince is that yes being a authorize user will definitely help with score and utilization.