Understanding FICO® Scoring

[Lasardo]

I have always used debit cards, I felt if you didn't have the cash then don't spend it. What I did not understand is I should have been building credit history all these years (it's confusing to me too) all I have is a car loan that is 4.2 years old so that is my oldest accnt. I have read and been told I need to have someone put me on their card as and AU for at least 6 months so I can use their history as my own. My long time BF (8 years) has offered to put me on his card for the 6 months, I don't need a card just his history. What, if any, will this do for my score? I would like to at some point to possibly refinance my car at a better interest rate. All responses are welcome.

[pizzadude]

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Lasardo wrote:
I have always used debit cards, I felt if you didn't have the cash then don't spend it. What I did not understand is I should have been building credit history all these years (it's confusing to me too) all I have is a car loan that is 4.2 years old so that is my oldest accnt. I have read and been told I need to have someone put me on their card as and AU for at least 6 months so I can use their history as my own. My long time BF (8 years) has offered to put me on his card for the 6 months, I don't need a card just his history. What, if any, will this do for my score? I would like to at some point to possibly refinance my car at a better interest rate. All responses are welcome.

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It should help your FICO score ~ revolving credit utilization is a very large component of your score.    If you have never had any credit cards at all then when the account shows on your reports it will boost your score, and hopefully enable you to obtain revolving credit in your own name and also get a better rate on your car loan.

[Lasardo]

Thank you for responding pizza dude. Do you know if the 6 months minimum is true to benefit from ones credit history? Also, when he removes me will my score drop or stay the same?

[laz98]

I'm not sure I understand what you're asking about, with the 6 months.  Are you asking if you have to be an AU for 6 months in order to benefit from it?

Yes, if your score initially rises from the additional history, then removing it will probably drop your score.  It's not a bump that will stay with you once the history goes away.

[pizzadude]

If you are asking if you have to be an AU for 6 months in order for it count towards your FICO score then the answer is no ~ unless it is the only thing on your credit report.   Initially you must have at least one account reporting with 6 months of history in order to generate a FICO score.

[Lasardo]

Thanks for the response

[carlismycat]

I asked my mom to put me on her account as AU (account that was around 17/18 yrs old back when it was open.) she had since closed it and paid it off. Before she paid it off, I learned about how high balances can affect the score negatively,and asked her to take my name off because she was almost maxed out. anyway her account has remained on my report for quite some time and checking my fico I saw it said on the website that I have a 19 year credit history with an average of 4 yrs (4yrs is my true history length) . So it has actually helped me in the long run for exactly that porpose.

[Lasardo]

I wonder if you would have a higher credit score if you were removed?
I think having a maxed card hurts you more than having little credit history.
I am an authorized user on my BF's card and the closer he gets to the Max the more my score decreases. When he gets closer I will have him remove me.

[carlismycat]

Are you talking to me, or another user ? I did have my mom remove me . She removed me before she paid that account off. And last time it showed up on my report,it showed as paid,and as a closed account. That closed account, (after I was removed) hung around. It was very much innactive and maybe she ,or the creditor took their time having me removed. I don't know. But I did ask her later on when it still showed up (on my fako website reports) if she took my name off right away,when I asked her to and she said yes. Maybe the fako sites use old info ?

[carlismycat]

Ok, I was confused. Herclosed account that she had me on as a AU , does still show up on my report. ButI looked at the details and noticed she opened that account only in 2007. So she did not have that account that long as I thought. I assumed it was that one because fico is saying my oldest account is 18 yrs 10 months. 18/19yrs ago would have been when I turned 18 and possibly had a CC . At that age I was extremely uneducated about how banks or credit worked,and if I had acc back then I probably didnt even know it. So that 19 yr thing must have been my own history , from an old account not even on my report(?)