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Member
KirkL
Posts: 14
Registered: ‎10-18-2012

Question about Authorized Users

Hi guys,

 

My mom has a BoA Visa, a credit union Visa, Citi Mastercard, AMEX (in the order of highest limit to lowest limit). I read on these forums that AMEX is better for increasing the average age of account. Honestly, I need all the help I can get. I'm a student, just starting out with my credit. I've had a Wells Fargo Visa card (unsecured) @ $300 for the past 6 months. I pay my balances off but because of the low limit, my utilization is very high (~50% easily).

 

1. Is there a benefit if my mom (excellent credit) adds me as an Authorized User to one of her cards? 

2. Which of the above cards is better to be added as an authorized user?

3. Do credit card companies do manual reviews when approving for new cards - then they'll be able to find out I'm an authorized user, right?

 

Thank you so much!

Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010

Re: Question about Authorized Users


KirkL wrote:

Hi guys,

 

My mom has a BoA Visa, a credit union Visa, Citi Mastercard, AMEX (in the order of highest limit to lowest limit). I read on these forums that AMEX is better for increasing the average age of account. Honestly, I need all the help I can get. I'm a student, just starting out with my credit. I've had a Wells Fargo Visa card (unsecured) @ $300 for the past 6 months. I pay my balances off but because of the low limit, my utilization is very high (~50% easily).

 

1. Is there a benefit if my mom (excellent credit) adds me as an Authorized User to one of her cards? 

2. Which of the above cards is better to be added as an authorized user?

3. Do credit card companies do manual reviews when approving for new cards - then they'll be able to find out I'm an authorized user, right?

 

Thank you so much!


The AU account will be included in your AAoA so the oldest card is best for that.   It will be included in your utiliaztion for a card with higher CL and lower utilization will be best for that.   It does not matter at all which brand it is.   If someone looks manually, the report shows which accounts are AU.   FICO does not care.

 

If you pay some of your balance before the closing date your utilization will be lower, but utilization is calculated fresh when your credit is pulled so you only need to do this when your are applying for something.   Note many here always keep there utilziation low, but I consider it more of a hobby or obsession with them.

 

Member
KirkL
Posts: 14
Registered: ‎10-18-2012

Re: Question about Authorized Users

Oh okay. Thanks. Since I have high utilization and a low AAoA, I should probably strike a balance between an older card with a higher credit limit then, right?

 

Ya I recently learned about this 'trick' to keep utilization low. I'm going to do it from here on out.

Senior Contributor
Wolf3
Posts: 3,198
Registered: ‎01-24-2010

Re: Question about Authorized Users


KirkL wrote:

Oh okay. Thanks. Since I have high utilization and a low AAoA, I should probably strike a balance between an older card with a higher credit limit then, right?

 

Ya I recently learned about this 'trick' to keep utilization low. I'm going to do it from here on out.


Maybe give preference to the older card, since you can control the utilization with the "trick".  

 

Maybe do 2 cards.

 

Member
KirkL
Posts: 14
Registered: ‎10-18-2012

Re: Question about Authorized Users

Makes sense :smileyhappy: Thanks!


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