Authorized user question?

[Anonymous]

Hey,

My GF has offered to make me an authorized user on her CC's.  

Is there any risk to her account and credit score if I become an authorized user on her Cap one CC account?

Thanks,

[Anonymous]

Hey,

I've done a lot of research in this topic as well and I can tell you that it will have no effect what so ever to girlfriends gredit report or score. The risk however lies within your credit as her decisions affect you. That account will now show up on your report which adds an account, improves account longevity, and increased credit limit are all things that could potentially help your score. On the other side if she misses a payment it will show up as if you missed a payment. If she maxes out the card it will hurt your credit card utilization (one of the biggest factors in a credit score). My advice is to ensure that there are no derogetory accounts (collections) on your report. In some states the max time it will last on a credit report is 7 years and since debt collectors make such a hefty profit on collections it's very common to settle debt in exchange of the collection account removed. Just make sure the agreement is in writing before you pay them! Also, make sure this relationship you are in is serious before such a move. Sharing credit is a serious thing so just make sure this relationship will not go south. Best of luck!

[Anonymous]

Thanks for the quick response! I think we're ready for it!

[takeshi74]

The only risk is if you increase utilization on the account.  That said, she doesn't have to give you the card if she wants to mitigate that risk.

Keep in mind that being an AU isn't automatically beneficial.  The account has to help your payment history, utilization, AAoA and all the other usual factors.  The prospective creditor also has to be one that considers accounts where you're an AU.  Some scoring models and creditors dismiss such accounts so being an AU won't help you with those.

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@Anonymous wrote:

If she maxes out the card it will hurt your credit card utilization

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Just to clarify, the tradeline doesn't necessarily have to be maxed to hurt utilization.

IMO it doesn't hurt if her tradeline will help improve your credit in cases where the account would be considered.  However, you still need to work on addressing your own derogs (see the Rebuilding subforum), managing utilization, etc.