Hi there,
Specific to Credit Cards only, Does anyone know whether cards where you're an AU on are factored into your overall total credit line exposure?
So, when a bank is considering your CC application and they pull your report, do they include AU accounts when determining your overall available credit line.
Ie. Someone has 100k in total credit available to them, however, 20k is from authorized user accounts.. Do they determine that you have 100k of total cc credit lines, or 80k?
Thanks.
$30,500
$18,500
NPSL
$15,000
$10,000
$25,000
$32,000
Generally AU is included. Thats why being an AU is advantageous.
But, it can become a disadvantage if the AU card ends up being heavily used at some point by, for example, parents that don't have utilization as their highest priority.
I have a related question. I am helping my 25 y.o. niece (late bloomer) get her credit reports
in better shape. I added her to my BCP ($50K CL & 21 years old) a couple months ago. I sponsored her in with
NFCU and opened a 5 year term shared secured loan in her name. I think that adding her as AU on one more
of my cards would be helpful. Is the size of my credit limits possibly going to make her have difficulty
with too much credit available when she goes to apply for a card in her own name? I was thinking of
adding her to my BoA AlaskaAir visa sig ($50K CL and 20 years old), but that would show as a total of $100K CL
on her reports? Is that going to be counter productive for apps on her own?
Oh, and she doesn't get physical possession of my account cards, except maybe the BCP with a low spending
limit set up when she is traveling only.
+
850 FICO8 since 2015, Thanks MyFICO - 5+ years since last HP
@Themanwhocan wrote:Generally AU is included. Thats why being an AU is advantageous.
But, it can become a disadvantage if the AU card ends up being heavily used at some point by, for example, parents that don't have utilization as their highest priority.
OK, one second OT - your BB Rewards card looks totally different from mine.
@Anonymous-own-fico wrote:
@Themanwhocan wrote:Generally AU is included.
Do you happen to have in mind a few such verified major credit card lenders?
No, its the FICO score that I'm thinking of. Once you get to internal scoring models, of which FICO is usually a part of that scoring, then naturally each lender is free to ignore AU or whatever else they want. I'm not saying being an AU is as good as having your own card, but it can help when you are getting started. Most lenders are still using FICO 08, or the older 04, so AU is one of the factors that is considered.
http://www.bankrate.com/finance/credit-debt/fico-08-will-score-authorized-user-accounts-1.aspx