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Established Contributor
Lasardo
Posts: 738
Registered: ‎04-26-2012

Authorized user. Wll it help?

I do not have very much credit history, only a car loan approximately 4 years old, al on-time payments. I had read here about authorized users. My friend put on in his Amex, my score jumped 30 points over night. I still need a higher score so he is willing to put me on his jcpenney card which is his oldest account. My concern is it is a department store card, will it even make a difference? If he removes me will my score go back down? How does this whole "authorized user" thing work?
CS 728- 01/13 from 554-12/11
Goal: 800
Contributor
jetsfan2012
Posts: 208
Registered: ‎05-28-2012

Re: Authorized user. Wll it help?

When I bought my first house about six years ago, I had been an AU on one of my parents dept store cards for a short period prior to the mtge app, and my score did jump about 40 pts. After the mtge cloased, they took me off, but the score really didnt go down much( maybe 10 point drop total). Note by that point the mortgage was showing, so for what its worth.

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Established Contributor
2NE1
Posts: 969
Registered: ‎12-06-2011

Re: Authorized user. Wll it help?

from what I've learned: being an authorized user only helps if the primary holder keeps their util% low. Perhaps you should search more on the CC forum! those guys/gals are experts on AU info! :smileyhappy:

Starting Score: 486 EQ, 529 TU, 518 EX 12/6/2011 (FICOS - lender pull)
Current Score: 595 EQ SW 1/10/13 628 TU08 1/10/2013 593 EX (BoA HP) 1/5/12
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Moderator Emeritus
MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009

Re: Authorized user. Wll it help?


Lasardo wrote:
I do not have very much credit history, only a car loan approximately 4 years old, al on-time payments. I had read here about authorized users. My friend put on in his Amex, my score jumped 30 points over night. I still need a higher score so he is willing to put me on his jcpenney card which is his oldest account. My concern is it is a department store card, will it even make a difference? If he removes me will my score go back down? How does this whole "authorized user" thing work?

Yes it can help you IF the account is older than any of yours (older than your current AAoA is even better), IF the payment history is long and clean, IF the utilization is very low, and IF it will report to the CRA's. Not all cards will do this. You need to ask the company first. You will inherit the entire history of this account. One caveat however; if this account starts to go south your credit will be affected as well. Keep that in mind.

 

If you are ever removed from the account then you will lose all the history.

Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: Authorized user. Wll it help?

My view....

AU is an excellent way to take benefit from the credit history of another in the building stage.

Many lower-end credit apps rely heavily, and some exclusively, on FICO score, so the AU part of your history might not receive much scrutiny.

 

However, as you move up in the type and level of credit being applied for, manual reviews become of increasing importance.

When your score is based to a large degree on the history of another, it makes it increasingly difficult for a potential creditor to evaluate your own, personal credit risk based on your FICO score.  They have no way, if they so desire, to produce a FICO score based only on your own account history.

 

Just anticipate the AU to loose some of its impact within the overall approval process.

 

 

 

Established Contributor
Lasardo
Posts: 738
Registered: ‎04-26-2012

Re: Authorized user. Wll it help?

Thanks everyone for the input, always appreciated :smileywink:
CS 728- 01/13 from 554-12/11
Goal: 800
Valued Contributor
Scamp
Posts: 2,791
Registered: ‎03-18-2007

Re: Authorized user. Wll it help?

Locking this original thread and directing further replies to new thread which has been moved to Understanding FICO Scoring for best response:  Authorized user used to boost score.

 

Please do not cross-post the same question on multiple boards; instead, if you feel your question would be better off on a different board, please use the Report Abuse function to ask the moderators to move your post.  Thanks!  -Scamp, Mod

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02/12/09 EX: 701 / 02/08/10 EQ: 719 / 02/08/10 TU: 723

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