@improvingmycredit wrote:I started actively rebuilding in and around 04/2011. My score was 580 when I started reading these forums and in 07/2011, I started posting and joined the FICO Fitness Challenge with a score of EQ 642. It wasn't easy and I was diligent just as you have been. You should be very proud of yourself! Keep onward and upward! Thanks for your participation and knowledge. Everyone's opinion counts and is just as important as the next! Please don't forget to share your experiences and help the next .
Edit: corrected figures. Sry
Thanks... learned a lot with the entire experience and I am better for it.
Still not where I want to be with my credit.. but I'm getting there fast.
I admit that I am a bit biased on the issue, but I don't agree that au accounts shouldn't count, at least for people who have no credit history at all.
Credit isn't just about loans anymore. It affects the prices people pay for insurance, whether or not they can rent an apartment, and in some cases, even their odds of getting a job.
Today, even the good secured cards (Citi, BOA) require a decent score, so it can be daunting for someone who is just starting out. The credit game is already stacked against the consumer, and I don't see why it is a bad thing to give someone a leg up when they are just starting out.
Credit isn't just about loans anymore. It affects the prices people pay for insurance, whether or not they can rent an apartment, and in some cases, even their odds of getting a job.
Today, even the good secured cards (Citi, BOA) require a decent score, so it can be daunting for someone who is just starting out. The credit game is already stacked against the consumer, and I don't see why it is a bad thing to give someone a leg up when they are just starting out.
@TwistedAngel wrote:
I admit that I am a bit biased on the issue, but I don't agree that au accounts shouldn't count, at least for people who have no credit history at all.
Credit isn't just about loans anymore. It affects the prices people pay for insurance, whether or not they can rent an apartment, and in some cases, even their odds of getting a job.
Today, even the good secured cards (Citi, BOA) require a decent score, so it can be daunting for someone who is just starting out. The credit game is already stacked against the consumer, and I don't see why it is a bad thing to give someone a leg up when they are just starting out.
So Mom and Dad pay their bills for 40 years with no lates.... Then add Johnny as an AU on his 18th birthday.
How exactly is their 40 years of credit history any indication of the creditworthiness of Johnny?
No indicator at all... Which is why I am baffled as to why lenders even look at AU accounts. This topic reminded me of a thread I read the other day... A guy with a maxxed out low limit card and was an AU on some $3500 card with a $0 balance. He's like "my util is 10% but I'm getting declined!?!?!?".... Yeah but your personal util is maxxed out?
@BluePoodle wrote:
@takeshi74 wrote:Sure, it sounds good to give those starting out a helping hand but the other side of the coin is that relying on another's credit means that the person's own credit isn't being accurately represented. The matter can't be considered solely from the perspective of the consumer.
Every situation is different. However, I usually let my daughter carry one of the cards she is an AU on (depending on which card I am wanting to spend on). She uses the cards for what she is supposed to and nothing more. For some of her purchases she pays me what the charge was to make a CC payment. As her parent, for other charges she makes, I cover the cost. How is this not accurately representing her as a CC user? Being responsible and not making unnessary charges and paying for her portion of the payments? To me, this is what being an AU is intended for. To watch and guide CC usage until one is ready to fly solo.
The banks see your account on her CR. They don't know what's she's doing or if she's paying you. It's a misrepresentation to say the least... If she didn't pay you you'd pay it anyway.
I hear FICO 08 doesn't put as much weight on AU accounts though...
That may be so, but if the argument is that the banks are not some how getting treated fairly because of a mid representation of credit reports... I don't think that's a good argument at all. Let's face it, the banks know perfectly well what they were doing when they started reporting AUs to begin with. If anything, it increases their pool of qualified persons coming into the market place by giving them a one up on history with a perspective candidate. Don't be deceived in thinking that they don't know what they are doing. The system absolutely is in favor of the lenders not the consumer. Adding someone as a AU to jump start was exactly the idea when the banks started reporting them from the beginning. The easiest fix for the banks if they didn't want this information affecting credit reports is to stop reporting AUs. At least that's my take on it.
Starting Score: 642
@improvingmycredit wrote:That may be so, but if the argument is that the banks are not some how getting treated fairly because of a mid representation of credit reports... I don't think that's a good argument at all. Let's face it, the banks know perfectly well what they were doing when they started reporting AUs to begin with. If anything, it increases their pool of qualified persons coming into the market place by giving them a one up on history with a perspective candidate. Don't be deceived in thinking that they don't know what they are doing. The system absolutely is in favor of the lenders not the consumer. Adding someone as a AU to jump start was exactly the idea when the banks started reporting them from the beginning. The easiest fix for the banks if they didn't want this information affecting credit reports is to stop reporting AUs. At least that's my take on it.
Sounds reasonable to me, you are most likely correct that it is in the self interest of the banks to report AUs to begin with.
@Fico2Go wrote:AU accounts may or may not do much overall for an individual credit profile. However, increasing AAoA is good enough for me.
Hey Fico2go!
I think this is the biggest help of being a AU really besides possibly utility.