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trharr
Posts: 1
Registered: ‎11-23-2012
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Adding daughter as AU

My daughter just finalized a divorce from a deadbeat. Her credit was damaged because he opened accounts jointly without her knowledge. I'm trying to help her get re-established financially. My credit is excellent. I plan on adding her as an AU on a few credit cards I have. My question. I added her on a Chase CC. But they never asked for SS# or anything else about her but name. How will they be able to add the info to her credit report without that info? Ant suggestions.

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digitaldiva
Posts: 447
Registered: ‎03-09-2011
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Re: Adding daughter as AU

I don't believe being an AU on an account works as far as improving your credit score.  Probably the best way for her to start improving her score is to open a secured cc; I hope someone will correct me if I am wrong.



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charliesmom86
Posts: 3
Registered: ‎11-19-2012
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Re: Adding daughter as AU

Agreed, I don't think that it works that way. If her ssn isn't needed, its not going to help her score a bit. Its just going to make it where she can use your card legally. Correct me if I'm wrong in this, I'm just starting out with credit repair and this is what I have heard. So maybe check with the credit card company and make sure that she isn't just getting a duplicate card of yours that isn't helping her out at all. I'm pretty sure she would have needed to provide SSN if it was going to help her.

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sphinx313
Posts: 567
Registered: ‎02-12-2011
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Re: Adding daughter as AU

Being added as an AU can certainly improve someone's credit score IF the creditor reports to the CRA's. Some do, some don't. When they do, they report the ENTIRE history of the account, including any lates or anything like that. So, say someone with ZERO credit and no positive accounts gets added as an AU that reports, they will inherit that TL from the start. If it's a 7 year old account with no lates and a $5,000 limit, the person with no credit now has $5,000 in available credit and probably good utilization as long as things on her credit report aren't affecting utilization.



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LIGHTNIN
Posts: 4,081
Registered: ‎03-24-2008
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Re: Adding daughter as AU

Hi and Welcome to the forums,

 

Some CCC's will ask for SS#'s and some don't.

Sounds like they are leaving it up to the CRA's to match her name, maybe by using addresses.

 

Yes, it should help her CS as long as there are no lates with a low Utilization of the CC. A reported balance of less then 9% of the CL of the CC, is ideal.

 

The daughters ex opened accounts jointly without her knowledge...........Wouldn't that be fraud?  Maybe a call to the fraud unit at the CRA's, could help?

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sphinx313
Posts: 567
Registered: ‎02-12-2011
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Re: Adding daughter as AU

+1 on the fraud, I didn't even think about that. Ask her to DV and maybe filter the things that were actually opened to her knowledge? Her signature on things will hurt in a fraud type situation so she should only be disputing the ones she is certain she did not approve.



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RobertEG
Posts: 17,708
Registered: ‎03-19-2007
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Re: Adding daughter as AU

[ Edited ]

If accounts were opened using her identity that she did not authorize, the FCRA fraud/identity theft process can immediately be implemented, requiring block of the alleged identity theft information from her credit report, and also requiring the creditor to provide all business records relating to those accounts directly to her without the need of any court order.

 

To invoke the FCRA process, she needs to file a police report, attesting to the existence of the accounts, and that she gave no authorization to the party who opened them.

 

Simple to do if that statement can be put in writing.  Then, simply send a copy of the police report to the CRA, who is required under FCRA 605B to immediately block them from inclusion in any future credit reports they issue..  Additionally, send a copy to the creditor, who is required under FCRA 609(e) to then provide all business records in their possession that relate to the opening or use of the account.  A legal discovery right.

 

Addition as an AU, provided they report to the CRA, will definately place the entire account history in her file, and FICO will score it the same as if it were hers.

The only negative is that if a potential creditor does a manual review and sees that her score is based in part on account information of another, they may choose to discount the value of her score in their decision making.  They would also have no way to "back out" any AU account, and thus determine a score representative only of her personal credit history.  Many creditors involved in the lower limit markets dont do manual reviews, so it is a good way for rebuilding.  However, if and when she apps for major credit, the existence of an AU in her file could create some creditor concern.

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rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
0

Re: Adding daughter as AU


RobertEG wrote:

If accounts were opened using her identity that she did not authorize, the FCRA fraud/identity theft process can immediately be implemented, requiring block of the alleged identity theft information from her credit report, and also requiring the creditor to provide all business records relating to those accounts directly to her without the need of any court order.

 

To invoke the FCRA process, she needs to file a police report, attesting to the existence of the accounts, and that she gave no authorization to the party who opened them.

 

Simple to do if that statement can be put in writing.  Then, simply send a copy of the police report to the CRA, who is required under FCRA 605B to immediately block them from inclusion in any future credit reports they issue..  Additionally, send a copy to the creditor, who is required under FCRA 609(e) to then provide all business records in their possession that relate to the opening or use of the account.  A legal discovery right.

 

Addition as an AU, provided they report to the CRA, will definately place the entire account history in her file, and FICO will score it the same as if it were hers.

The only negative is that if a potential creditor does a manual review and sees that her score is based in part on account information of another, they may choose to discount the value of her score in their decision making.  They would also have no way to "back out" any AU account, and thus determine a score representative only of her personal credit history.  Many creditors involved in the lower limit markets dont do manual reviews, so it is a good way for rebuilding.  However, if and when she apps for major credit, the existence of an AU in her file could create some creditor concern.


Just wanted to add to the bolded part here. Just to avoid any confusion, the FICO scoring ELEMENTS of that trade line will be the same, but the FICO score itself will not be, because of all the other factors that create an individual FICO score.

 

Adding myself as an AU was the best thing I did for my credit score at the start, but I have pulled myself off all AU accounts as I have established my own history

 

 

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX
Valued Contributor
rckstrscott
Posts: 2,660
Registered: ‎04-25-2011
0

Re: Adding daughter as AU


charliesmom86 wrote:

Agreed, I don't think that it works that way. If her ssn isn't needed, its not going to help her score a bit. Its just going to make it where she can use your card legally. Correct me if I'm wrong in this, I'm just starting out with credit repair and this is what I have heard. So maybe check with the credit card company and make sure that she isn't just getting a duplicate card of yours that isn't helping her out at all. I'm pretty sure she would have needed to provide SSN if it was going to help her.


You do not need to a SSN to include an account in a credit file, name and address will suffice.

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 09/14: TU: 784 | EQ: 752 | EX: 784
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession


Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $13900, Citi/Home Depot $8500, Capital One Cash Rewards $3500, BOA $7500 Total Utilization: 3%. AAoA: 2yr, 9mth. INQS: 1 TU, 1 EQ, 3 EX

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