My sister is adding me as authorized user

[Pineknot69]

Hi all! I spoke to my sister and she agreed to make me an authorized user on her Kohl's card. She said she has had it for "several" years. I know she makes her payments and the account is in good standing. Currently my fico score is 582, I just want to know if this will increase my score and does anyone who has done this have any idea how much it may impact my score? I am trying to get to 620 as soon as I can so I can apply for a VA loan. Thank you for your help, I am learning so much!

[llecs]

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@Pineknot69 wrote:

Hi all! I spoke to my sister and she agreed to make me an authorized user on her Kohl's card. She said she has had it for "several" years. I know she makes her payments and the account is in good standing. Currently my fico score is 582, I just want to know if this will increase my score and does anyone who has done this have any idea how much it may impact my score? I am trying to get to 620 as soon as I can so I can apply for a VA loan. Thank you for your help, I am learning so much!

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This sounds vague, but it can help or hurt.

It can help if:

1) the CC reports and it older than your average age of accounts and/or is your oldest account and/or is your oldest store card/revolving.

2) Assuming it reports as a store card, it can help if you don't have any other store cards or revolving accounts reporting.

3) It reports and the balance and reported CL ends up improving your overall utilization on your other revolving accts.

It can hurt if:

1) the CC reports and there's a balance reporting (only hurts if most of your accounts are reporting a balance).

2) the CC reports and the balance and reported CL end up hurting your overall utilization.

3) the CC reports and it is younger than your AAoA.

4) the CC reports and is younger than a year old.

5) the CC reports and there are lates reporting on it, or derog comments reporting.

Too many unknowns to guess a score change. Most of the negative impact would be the balance on the card along with any derog history. It can really help if you don't have any credit reporting, or it helps your AAoA by years.

[Pineknot69]

Thanks for the help my oldest reporting account is only 2 years old so I hope that will help, also I only have one secured card at this point with only a 300.00 limit, a car payment on time x1 year, and I need more positive accounts. Very little credit history, never had a credit card until last year out of ignorance mostly and my last car loan ws in my ex husband's name so it didn't help me at all. I hope to understand what will raise my score if there is anything I can do to accelerate the process. Thanks again

[RobertEG]

Also be aware that many lendors, particularly for higher amounts of credit, such as a mortgage, will want to see the consumer's credit score based only on their own credit history, and not affected by accounts of others. 

With the inclusion of an account of another in the consumer's credit report, the score is not representative of the applicant's own risk, and thus may of diminished use.  They cannot "back out" individual accunts and produce such a score.

Some lendors will even ask for a removal of AU accounts during the review process so that they can see a "real" score.

You might wish to have an informal chat with the prospective lendor regarding their view of AUs in consideration of applicant scores......

[llecs]

^^ 'Tis true. Some lenders do frown on AUs. If one says no to this AU TL, then you can always find a different lender. Some do care and some don't. If your FICO does increase, don't rely on the increase. Definitely aim higher by aking steps to improve whatever is holding your score back now. Sound like you might see an increase on the age of the TL as well as an improvement to your mix (assuming you don't have anything else reporting in the way of revolving/store TLs, opened or closed). It all depends on the util of that card and payment history.

[Pineknot69]

Thanks for the heads up! I didn't know that. Do you know if Veteran's United looks at that?

[Pineknot69]

Thank you good to know. I am SO HAPPY I found this forum!