Question about Authorized User Account

Anonymous · ‎09-02-2016

Hello Everyone, First post here.

I have a question about getting an AU card. My sister has several cards that are in excellent standing with 10+ years history and almost always a 0 balance. She is willing to add me as an AU. Honestly I would never use the card, just let her put it in her safe. This is only for the added credit history.

My question is. Is it always a good thing and will it definitely have a positive impact on my FICOS? My main issue at this time is that my report shows only 23 months history. I have 6 CCs right now all in good standing and low utilization. I'm not going to open anymore at this time. I'm pretty happy where I'm at. Like I said the only issue I see is my lack of credit history.

Is being an AU seen in any negative light according to FICO or lenders?

Is there any "best" card that will 100% definitely report too all three credit bureaus? I'm not sure the exact accounts she has but I know she has Discover and a Cap One for sure. I just want to be sure that if we go through the trouble of adding me as an AU that it will report!

Will being added as an AU do a hard pull on my credit?

Thanks for any info you provide!

Scotchy

daybreakgonesXe · ‎09-02-2016

@Anonymous wrote:
Hello Everyone, First post here.

I have a question about getting an AU card. My sister has several cards that are in excellent standing with 10+ years history and almost always a 0 balance. She is willing to add me as an AU. Honestly I would never use the card, just let her put it in her safe. This is only for the added credit history.

My question is. Is it always a good thing and will it definitely have a positive impact on my FICOS? Overall, yes. The only time it would be a "bad" thing is if your sister has any late payments/defaults in the future with it. My main issue at this time is that my report shows only 23 months history. I have 6 CCs right now all in good standing and low utilization. I'm not going to open anymore at this time. I'm pretty happy where I'm at. Like I said the only issue I see is my lack of credit history.

Is being an AU seen in any negative light according to FICO or lenders? Not negative, no. Most FICO scoring will like it very much. I'm not 100% sure but there may be a certain FICO model that excludes AUs. Some lenders will also exclude AU accounts from their evaluation/internal score process. Chase is known for this.

Is there any "best" card that will 100% definitely report too all three credit bureaus? Best card is any major CC company. I would recommend getting added onto the oldest one possible. I'm not sure the exact accounts she has but I know she has Discover and a Cap One for sure. I just want to be sure that if we go through the trouble of adding me as an AU that it will report!

Will being added as an AU do a hard pull on my credit? No it will not.

Thanks for any info you provide!

Scotchy

righthererightnow · ‎09-02-2016

AU is only negative if the user of the card has negative account experience... otherwise... it's golden.

Though, the rules have been changing on the AU bonus, some new FICO scores do not give you the same boost from this that they did before (they are changing the way that it's scored). But, this is not a negative, more neutral, as the changes affect how *much* positive you can add from it.

newhis · ‎09-02-2016

Don't get AU to any Amex card, it will report as new account.

Anonymous · ‎09-03-2016

Thanks for all the great info guys! Very helpful. I think we are going to go with her Discover card. 15 year history, 100% paid on time and no balance. Hope this helps my FICO :-) I'm preparing to "attempt" to get a mortgage in the next year or so.

Again, Thank you all

newhis · ‎09-03-2016

@Anonymous wrote:
Thanks for all the great info guys! Very helpful. I think we are going to go with her Discover card. 15 year history, 100% paid on time and no balance. Hope this helps my FICO :-) I'm preparing to "attempt" to get a mortgage in the next year or so.

Again, Thank you all

If she can add you to the Cap1 card with long credit history that will help too.

If you only have 6 CC on your reports, you may consider a secured loan, that will help with your score too. Some people get the secured loan, pay 90% of it then pay a few dollars each month until it is paid. If you have other loans, then this is not needed. Good luck.

Anonymous · ‎09-03-2016

do you think taking a loan for a car would be better than the secured loan? Also do you think its better to get a car before or after a mortgage effort? when I say get a car I do obviously mean taking a loan out for a car.

Thanks

newhis · ‎09-03-2016

@Anonymous wrote:
do you think taking a loan for a car would be better than the secured loan? Also do you think its better to get a car before or after a mortgage effort? when I say get a car I do obviously mean taking a loan out for a car.

Thanks

The secured loan is only for Score. If you want/need a car then that could work but not as much because you will not pay 90% of your loan in the first month.

I read that if you are going for a mortgage within 12 months is better not to do mayor changes in your report and just keep your util low.

I'm no expert on mortgage or loans. Mortgage should be the #1 priority.