Wife: good credit, Husband: bad credit

[Anonymous]

My husband has a lower cs due to a recent delinquency which was sent to collection.  Our lender told me a good way to improve is score is to add him to my cc's as a "co-borrower aka joint user".  If I add him as a co-borrower will his poor credit score bring my good score down or will my score bring his up?

Message Edited by karahmia on 06-03-2009 10:30 PM

[ficonewbie01]

If you add him as an AU (authorized user) and the CC reports the AU to the CRA then it should boost his score, as long as you have a long history with the CC and low balance. By adding him to your CC will not lower your score.

Message Edited by ficonewbie01 on 06-04-2009 09:10 AM

[Anonymous]

I wouldn't add as joint and some CCC doesn't allow it once the account is open. I would go the AU route instead of joint. While his credit score won't affect yours, if he is joint holder, his credit can affect the terms of your credit(higher interest, etc).

However, being AU doesn't automatically mean increased scores.

Does he have his own revolving accounts? What is his util? How will it change when you add these cards?

What is his AAoA and how will it change with the added cards?

For example, I have CC already reporting, good standing, no lates, low overall util, etc. If I were added to my spouse's cards as AU, I wouldn't expect an increase. I might see a decrease depending on how it changed my AAoA.

[Anonymous]

My husband has two revolving accounts.  One account is at 86% util and the other at 91%.  We are actively working on paying these accounts down, but of course everything takes time.  I was planning on adding him to the cards that I keep at a 10% util, Target and HSBC.  Does that seem like the best way to handle it?

Message Edited by karahmia on 06-04-2009 09:12 PM

[Anonymous]

That would work (also keep in mind that the age of those accounts will make a difference to his score also (either positive or negative depending on if it lengthens or shortens his AAoA and if they have been open less than a year).  Personally I would also pay those accounts down to 0 utl so that he has two cards showing a zero balance as Fico does factor in the number of cards showing a balance into your score.  Just add him as an AU also

Still keep thos accounts active just PIF when you use them so they don't report a balance and if you have another card then leave a (very) small balance on one each month to report and then PIF before the due date to avoid finance charges.

[Anonymous]

See the AU part is what confuses me.  I've been reading online about FICO 08 and how the changes to the policy no longer  AU's to "piggyback" on their loved ones positive credit.  So, is adding him as an AU enough?  I feel like I should add him as a joint account holder.

[Anonymous]

Fico 08 did state that they were going to not include Authorized User accounts in their calculations...

they then changed their minds

AU accounts will be taken into the score calculation.  

Adding him as a Joint Account Holder (if the credit card companies will even allow it on open accounts as many do not) may result in the terms of your card being worsened, they can run his credit score as a joint account holder and may increase rates/decrease limits if his scores are not as good as yours.

Adding him as an AU allows him all the benefits of your good history and continuing payments/good terms without requiring a credit report to be pulled for him or your terms being affected by his score 

[Anonymous]

Thank you all for your help!  Joing this forum is the best thing I've done in a long time!