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Posts: 55
Registered: ‎01-26-2011
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Improve Score By Being Added To Friend's CC Acct???

Hi - I read some posts at one time about being added onto someone elses credit card account to improve your credit score.  Does this still work and if so how?


Starting Score: EQ 529 / TU 565 / EX 551 (NOV 2010)
Current Score: EQ 674 / TU 694+ / EX Who knows - not me???
Goal Score: 700+ All CRA's


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Registered: ‎11-11-2010
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Re: Improve Score By Being Added To Friend's CC Acct???

[ Edited ]

This will work provided that,

 

* Your friend's account is older than yours

* Your friend's account is positive (no late, utilization is low, and active)

 

Keep in mind if your friend's account suddenly has negative marks (late, high utilization, and/or inactive), you'll be affected as well.

 

Also when you call in for recon, analyst will do a manual review and disregard you friend's account (since it is not yours).

 

If you want, just ask your friend to add you as authorize user.

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Registered: ‎06-05-2008
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Re: Improve Score By Being Added To Friend's CC Acct???


RRinTN wrote:

Hi - I read some posts at one time about being added onto someone elses credit card account to improve your credit score.  Does this still work and if so how?


 

It's called an "Authorized User" account, and may or may not help you.  The way it works is he or she adds you as a cardholder, and a card is issued in your name.  They don't have to give it to you, but that is the intent of the program.  Then, presumably the card shows up as an active tradeline on your credit report.  The problem is it really only helps you if they maintain perfect history and utilization.  One small mistake on their part and it could become a negative account for you.

 

Fico has changed their scoring model a bit in response to abuse of this practice.  Some people were paying persons with perfect credit to add them as AU's, artificially raising thier score.  This was called "piggyback for pay".  Remember, the score as a product has value only so much as it predicts one's risk to default.  If it is falsely inflated, it does't tell the true story of your credit risk.  CB's can't make money issuing false predictions.

 

So the updated scoring models have provisions to devalue or eliminate "Piggyback" accounts, while still valuing spousal accounts.  If you have the same last name and address it is likely that your AU cards will show up on your report.  Before my wife and I got married, she added me as an AU, and it did show up on my report and help my score.  It also helped my AAOA.

I guess if you and your friend trust eachother enough to do this, it might be worth a try.  Remember, they essentially are "authorizing" you to use their credit card.  If they don't actually give you the card that comes with your name on it, then you are not honestly an Authorized User, and are falsely manipulating your credit report.  I'm not sure on the legalities of this or whether it violates the credit card terms...  You need to do your own homework on that.

 

I suggest you search here for the term "authorized user" ans see what you find.  There is a lot of relevant information here.

 

Good luck!

 

3-26-15: FICO EXP: 814 - EQU:813 - TRAN: 809 - AVG: 812 +262 points from JUN 2008 - MY CREDIT JOURNAL

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Posts: 55
Registered: ‎01-26-2011
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Re: Improve Score By Being Added To Friend's CC Acct???

The person I am refering to is my live in girlfriend (soon to be more) and she offered because we share a home and expenses together.  I just wanted to know what if any impact it would have to my score after remembering posts that I had read in the past.  All of her accounts are in good to great standing so i am not worried there.  I already use her card on occasion (with her permission of course) and pay the bill for her to cover what I have spent over the past few months, so she made the suggestion to do this.  It helps her to have one less bill and has helped me to acquire a couple needed items that otherwise I would have not been able to acquire.

 

Thanks for the info guys,


Starting Score: EQ 529 / TU 565 / EX 551 (NOV 2010)
Current Score: EQ 674 / TU 694+ / EX Who knows - not me???
Goal Score: 700+ All CRA's


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Posts: 2,658
Registered: ‎06-05-2008
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Re: Improve Score By Being Added To Friend's CC Acct???


RRinTN wrote:

The person I am refering to is my live in girlfriend (soon to be more) and she offered because we share a home and expenses together.  I just wanted to know what if any impact it would have to my score after remembering posts that I had read in the past.  All of her accounts are in good to great standing so i am not worried there.  I already use her card on occasion (with her permission of course) and pay the bill for her to cover what I have spent over the past few months, so she made the suggestion to do this.  It helps her to have one less bill and has helped me to acquire a couple needed items that otherwise I would have not been able to acquire.

 

Thanks for the info guys,


Sounds like a good reason to get an AU card, but be careful...  If the relationship goes sough it could get tricky.

3-26-15: FICO EXP: 814 - EQU:813 - TRAN: 809 - AVG: 812 +262 points from JUN 2008 - MY CREDIT JOURNAL

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