AAoA help! Authorized user on Walmart credit card!

Anonymous · ‎10-12-2017

My partner and I want to buy a home but his credit is too young for a FICO score. He’s only had a credit card for 2 months. My mother had him added as an authorized user on her very well managed Walmart card that she has had since 2006. Walmart does report authorized users to the bureaus and they report next week. When they report, will my partner’s AAoA go up and be able to generate a FICO score? I talked to Walmart’s customer support and they were unsure. It seems like I get a lot of conflicting information about credit.

Anonymous · ‎10-13-2017

If the account shows up on his credit report, yes his a FICO score will be generated and yes, his AAoA will go up. I don't have much experience with AU accounts, as I've never been a part of one either by adding someone or being added. My understanding though is that there are cases where AU accounts don't show up on the AU's report for whatever reason. I think one of the reasons could be the relationship between the primary and the AU. Some creditors like to see the same address, last name etc. to sort of prove a relationship, as in the past AU's were abused with people on one side of the country basically adding someone (and being compensated for it) that they had never even met. I know some of the veterans on here can weigh in far better than I can on this topic though.

rmduhon · ‎10-13-2017

Wal-Mart does report AU's. Names and addresses don't have to match and he will get the card history. I'm speaking from experience on this card. I added my nephew to my Wal-Mart account to give him a head start on his credit, different names and addresses. He had a credit score the next time my card reported to the bureaus. Having said that, some mortgage lenders will require the removal of AU accounts before they'll approve a mortgage. You might want to talk to the lender you plan on using and see what their requirements are.

Anonymous · ‎10-14-2017

I was recently added to my dads walmart card as an AU, they didn’t ask for my ssn. Will it still be on my credit reports? Also did you have to use your nephews ssn?

Anonymous · ‎10-14-2017

Good responses by the other folks. I notice that you describe the mother's card as "well managed." Two quick points:

(1) If by that you mean that there has never been a single late payment, that's encouraging. But if there has been even one, then your partner will be going from a clean profile to a dirty one by being added as an AU.

(2) You don't tell us whether what the balance is compared to the credit limit. Some people would consider a $500 limit card that they run $400 each month on as well managed, because they are paying it off each month. From a FICO utilization perspective, however, that would be considered bad, since the card looks like it is always close to being maxxed out. So an important question is whether the card is usually reporting a very small balance compared to the credit limit (less than 9%).

rmduhon · ‎10-14-2017

@Anonymous No, I didn't have to use his ssn and it still reoorted.