AU reporting and FICO8 scoring?

[Anonymous]

I am an AU on two accounts of my DH"s.   One older and one recent.  I didn't see any point in us both applying for the same cards since everything else we have is joint.  The con to that reasoning is my portfolio wasn't very strong for when we want to buy a hourse.  I have a pretty thin file and have started building my own portfolio.

Anyway, It did help boost my score via # of accounts and my untilization/limits BUT I am 98% sure they do NOT count towards my AAoA.    I couldn't figure out why my AAoA was "off" (too low) on my reports considering his accounts so I did some searching on here and verified that is most likely issue.    I think that is a change they made with the Fico 8 scoring system.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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Here's my experience with AU's, and take it for what it's worth. (Which, according to my scores, isn't worth a lot.) I was put on three TLs as an AU; these ranged from 12 to 20-plus AAOA, with perfect payment history, five-figure CLs, and very low utlil. (Less than 1 percent on all of them.) All three report. I can't concretely ascribe my score jump to these AU's, because the workings of the credit rating system is like trying to find Oz behind the curtain. (I'm not convinced that the entire credit system isn't just a big bunkered warehouse in the Nevada desert where everyone's "credit file" is an individual glass jar filled with ping pong balls and when a creditor needs a number, Oz sends a winged monkey to randomly pull a ball with a random credit score on it.) But my scores have jumped in significant ways, enough for me to get two secured cards, an unsecured Discover, and be pre-approved for a Chase Sapphire whatever-it-is and two AMEX cards, which I be apping for soon. This will hit my own AAoA, but two or five years down the road it's not going to matter.

This would have not been possible last month. So while people will tell you that AU's don't reflect your own personal value as a creditworthy person, it's allowed me to get cards that I wouldn't be able to get on my own, just one month into my rebuild, cards from prime lenders that I can use to garden and grow my own AAOA. While people are probably right that mortgage lenders look down on AUs during a manual review, I've found there's a good-natured, gentle tsk-tsk-ing on these boards when it comes to AU's because they signal that you haven't pulled your creditworthiness up by its own bootstraps. While they are probably right, there are also folks on here who have said that they know lenders who have the ability to "back out" the AU accounts when doing a manual overview. Who's right? Well, for people like you and me it probably doesn't matter, because no one on these boards are giving us the mortgage. There are agendas everywhere, which include, as you noted, the creditors, who ultimately WANT to extend credit; otherwise, how do they survive? 

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HAHAHAHA, Oz, Flying monkeys, Jars filled with balls inked with random numbers. Yep, that probably reflects the credit scoring calculation.

I listen or rather contemplate what others input is. But, in the end, you gotta make your own call. So that is what I am doing.

Being absent from any credit for eight years, and recovering from a BK was why my credit was fouled. But the BK is dropped off and I have no baddies at all. Which I am rather proud of since I only started getting the credit reports squared away 9 months ago. I am lucky I didn't run into anything to difficult to deal with. Honestly I thought it would take longer 580 to 750.

On the AU difference in scoring, figuring that if I keep my utilization at 0 to 3%, verify no inquiries will drop off, Don't apply for any credit. Basically don't change a thing on my credit report, my numbers will be relatively the same for the next three months. During that time when I see the AU report the number will change. Then I will know it's effect. However it will only be the effect on my score calculation. It would have a different effect on anothers credit score. But all thing being equal, I will know, that's what matters.

Cheers

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If you get a chance, update us on your findings. Good luck!

[Anonymous]

Ok, so finally got this in play. Some recent results.

Equifax- Added Belk AU which was opened in 1984, currently at $782 of $3100 credit line. Reported to Equifax  only so far. Still keeps me at 7% utilization total. Fico score increase from 716 to 746 (+30 points). I have 4 inquiries on Equifax which is probably costing me 10 to 20 points.

TransUnion - Added Joint account Macy's opened since 1986, currently 0 balance of $1300 limit. Reporting only to TransUnion  so far. Fico score increased from 766 to 800 (+34 points).

This is a large increase, however, I have a thin credit file of 5 accounts with AAoA at 5 years before the above cards reported. Pretty much doubled my AAoA on both reports with just one of the cards reporting. So anyone with a thicker file may not see this kind of increase. But I personally think a 15 or more point increase across the board would be worth it.

Both cards have yet to been reported on Experian , but I think they run behind (slower). I am using Fico 3 score monitoring to keep track.

Macy's account still needs to report on Equifax .

Belk AU account still needs to report on TransUnion .

So we will see what happens this upcoming week. I will update as they complete reporting, hopefully

However, so questions have been answered. The Belk is a AU account, with a balance of $782, opened in 1984. Primary card holder does not share my last name, nor do we share an address. However, close relative of mine. But it managed to report to one CRA so far. And at a 30 point increase, I don't think Fico is deducting for it at all,,, as they say they have ways of discounting AU trade lines, or not allowing them to score as much as they normally would.

I went with a joint account on the Macy's card, because there seemed to be a issue with it reporting to the CRA's as a AU. Macy's said they were sending the info, but the CRA were not adding the trade line for whatever reason. I may have been impatient, but whatever, altered my plan to fit the result I intended.

Cheers

[Shann0n_marie]

Nice! Keep us updated!

[Anonymous]

Both macy's and belks reported to Experian which raised my score from 733 to 787 +54 points.

Still waiting for Macy's to report to equifax, which it should being a joint account and the fact that it reported to the other two CRAs.

Waiting for the Belk AU to report to Transunion but my score is up to 805.

But I took advange of the Experian and Transunion scores and applied for Fidelity Amex and Sallie Mae Mastercard with success. I chose those because of thier cashback properties and they made inquiries on the CRA I have least amount of inquiries on EX and TU.

I will update on the outstanding cards yet to be reported on EX and TU.

[Shann0n_marie]

Wow that's pretty amazing!👌🏼😱😍

[Anonymous]

This will be my last post on this subject.

1. Do AU's count for FICO scoring? Not based on my calculations on EX FICO8 scoring, keep reading. It's my belief that CRA's have made it increasingly harder to get AU's adding to your credit reports. Especially if the account holder has different last name and different address, even if it's a relative.

2. Possible way to get AU's added in the above scenario. If you can become a joint account holder. The lender and the CRA's have to report the trade line on your account. When they do this, the address of the original account holder will report on your CR. This would allow any AU accounts from the same account holder to report on your CR.

Exerian- Joint account reported with address of original account holder, then AU account reported.

Equifax- Joint account reported with address of original account holder, then AU account reported.

Transunoin- Joint account reported, without adding original account holder address!!, AU account never reported.

All of my credit reports are identical as far as accounts, with the exception of transunion, which isn't reporting my AU. However, the FICO scores for all the CRA's are relatively the same. my explanation for this is the following:

1. The Macy's is nearly 30 years old. I am a joint account holder, which holds the same weight for FICO as if the account was only mine. Which would put the card in (Oldest open account) category, as well as increasing (Average age of Accounts) category. There is no or very low utilization.

2. The Belk's card is nearly 32 years old, reporting as AU, it should be counting towards (Average age of Accounts), I need to go back through my post to verify, however there is about 25% utilization on the card. Utilization has more impact on your scores.

Update: From the calculation of an Equifax Credit report pulled on 07/08/2015, where both the Belk and Macy's cards report, the AAoA is stated as 7 years. Using an AAoA calulator, the AAoA should be nearly 11 years. The only way I can get it to match 7 years is by not counting the Belk's AU card at all. I have a more recent 3B report, however it does not indicated AAoA on either EQ or EX. Only TU, which unfortunately does not have the AU trade line. Additionally, I don't see the AU counting toward utilization either. The CR indicates 1% utilization, and if the AU was to be factored in, it should be 3% utilization. The Belk AU card would also be my oldest open account, but the CR indicates it is the Macy's joint accout at 29 years old. So I am forced to come to the conclusion, that the AU is not providing any benefit, on the FICO8 scoring model. (At least none that I can verify on Equifax FICO8). Not sure about pervious models. 

I still have not disputed withTU about address of the Macy's card. If I did and the address was added, I am confident theAU will report. But judging from my scores, I don't think there would be any positive impact at this point. 

I think this process was worht 30 to 34 point increase in my situation. Not to mention a little better understanding of how FICO is calculating AU's, and the process CRA's are engauged in to control AU reporting.

[Anonymous]

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@Anonymous wrote:

This will be my last post on this subject.

1. Do AU's count for FICO scoring? Not based on my calculations on EX FICO8 scoring, keep reading. It's my belief that CRA's have made it increasingly harder to get AU's adding to your credit reports. Especially if the account holder has different last name and different address, even if it's a relative.

2. Possible way to get AU's added in the above scenario. If you can become a joint account holder. The lender and the CRA's have to report the trade line on your account. When they do this, the address of the original account holder will report on your CR. This would allow any AU accounts from the same account holder to report on your CR.

Exerian- Joint account reported with address of original account holder, then AU account reported.

Equifax- Joint account reported with address of original account holder, then AU account reported.

Transunoin- Joint account reported, without adding original account holder address!!, AU account never reported.

All of my credit reports are identical as far as accounts, with the exception of transunion, which isn't reporting my AU. However, the FICO scores for all the CRA's are relatively the same. my explanation for this is the following:

1. The Macy's is nearly 30 years old. I am a joint account holder, which holds the same weight for FICO as if the account was only mine. Which would put the card in (Oldest open account) category, as well as increasing (Average age of Accounts) category. There is no or very low utilization.

2. The Belk's card is nearly 32 years old, reporting as AU, it should be counting towards (Average age of Accounts), I need to go back through my post to verify, however there is about 25% utilization on the card. Utilization has more impact on your scores.

Update: From the calculation of an Equifax Credit report pulled on 07/08/2015, where both the Belk and Macy's cards report, the AAoA is stated as 7 years. Using an AAoA calulator, the AAoA should be nearly 11 years. The only way I can get it to match 7 years is by not counting the Belk's AU card at all. I have a more recent 3B report, however it does not indicated AAoA on either EQ or EX. Only TU, which unfortunately does not have the AU trade line. Additionally, I don't see the AU counting toward utilization either. The CR indicates 1% utilization, and if the AU was to be factored in, it should be 3% utilization. The Belk AU card would also be my oldest open account, but the CR indicates it is the Macy's joint accout at 29 years old. So I am forced to come to the conclusion, that the AU is not providing any benefit, on the FICO8 scoring model. (At least none that I can verify on Equifax FICO8). Not sure about pervious models. 

I still have not disputed withTU about address of the Macy's card. If I did and the address was added, I am confident theAU will report. But judging from my scores, I don't think there would be any positive impact at this point. 

I think this process was worht 30 to 34 point increase in my situation. Not to mention a little better understanding of how FICO is calculating AU's, and the process CRA's are engauged in to control AU reporting.

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My take from this - don't bother with shortcuts.

[Anonymous]

No Authorized user shortcuts anyway. 

However, if your willing to take the risk, and have the opportunity, Joint account holder on a older will maintained credit card would certainly help the cause.