Understanding FICO® Scoring

[billyboo]

My wife has a FICO score of 0 (Despite being an authorized user on my Chase Visa)

She has no credit history good or bad.

This year she started a PT job.

What steps would you recommend to building a solid score for a total Newbie? 

Thank you!

[RobertEG]

My view....

The AU status will, once it kicks in, give her a credit score of appox the same as yours, as your CRs will be almost identical.

That should assist in getting new credit from creditors who dont do a manual review of her CR, and rely only on pure FICO score.

However, a FICO score built only on an AU status has, in my opinion, definite drawbacks.  When she applies for new credit, if the creditor does a manual review of her CR, they may discount her FICO score as not being truly representative of her own, personal risk.  So I would initially avoid going for the high CL cards, and just trying to sneak in based on your score.

She needs, as a basic building block, multiple revolving accounts, as a large chunk of FICO scoring is built on assessment of use of discretionary, revolving credit.

I would start with a small CL bank card, such as maybe HSBC, which will issue bank cards at low limits without intense CR review.  Build a couple of those, and the foundatiion is layed for her own history.  I would do some investigating before applying to be pretty sure of approval, as she does not want to show a lot of new inquiries that might raise a manual review and reveal that her score is AU-based.

[pizzadude]

+1 to Robert's advice.   Also it takes 6 months of credit history reporting before you can generate a FICO score.

[billyboo]

Thank you for the great advice : )

However I am wondering, she discovered she has a 0 score via a denied application for a Kohls Charge Card.

She has been an authorized User on my account for 5+ years, so I wonder why that does not show on her score?

As per denied letter states..

Pulled TransUnion

Lack of Sufficient Trade Lines

Did not meet underwritting guidelines (what does this mean, low income perhaps?)

Your Credit score  0

Scores Range from 501 to a high of 990

-------------------------------------------------------

Any thoughts would be appreciated! )

Thank you

[MarineVietVet]

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billyboo wrote:

My wife has a FICO score of 0 (Despite being an authorized user on my Chase Visa)

She has no credit history good or bad.

This year she started a PT job.

What steps would you recommend to building a solid score for a total Newbie? 

Thank you!

---

Hi there.

Not every issuer will report AU's but I believe (could be wrong) that Chase does. Have you checked her credit reports to see if this account is even reporting? If not reporting you might contact Chase and ask them (1) If they report AU's and (2) If so why they are not showing on your wife's reports.

[billyboo]

I just sent the following to Chase,

"Hello, My wife has been an authorized user on my account for quite a number of years. I am wondering why this account has never shown on her credit reports, It should? Thank you for your advice"

It appears that chase does not automatically report?

I will post their reply.

[billyboo]

Found this on the Chase Card site...

"1. Additional cards and all cardmember communications will be mailed to the primary cardmember, who is responsible for all charges made by the authorized users. Reference to the account may appear on the authorized users' credit reports."

Wow theres a loop hole.   Perhaps they report only if negative?

[webhopper]

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billyboo wrote:

Found this on the Chase Card site...

"1. Additional cards and all cardmember communications will be mailed to the primary cardmember, who is responsible for all charges made by the authorized users. Reference to the account may appear on the authorized users' credit reports."

Wow theres a loop hole.   Perhaps they report only if negative?

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The problem is that the Chase AU links the cardholders name and address on the credit report with their existing accounts... Do you have an Amex?  If you have an Amex, the Amex takes the SS# of the AU, and updates their CR with the correct address, and it will create a credit file for the Chase to link up with.

I added my fiance as an AU on Discover and Chase, but they all didn't start reporting until I added him on Amex, and Amex updated his address with the bureau.  Food for thought