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01-14-2013 10:01 AM
My husband and I are hoping to apply for a mortgage this Spring. My scores are around 650. The biggest problem for me is a 5 year old satisfied judgment, and 2 collections settled 2 or 3 years ago. No late payments. I only have one credit card with a $200 limit that it always reporting 5% or less. His credit is 600, 650, 630. About 6 settled accounts reporting and student loans in deferment. A couple of late payments but the soonest are almost 2 years old. His oldest account is 3 years, my oldest account is 11 months.
My question is, my parents both have excellent credit and have offered to add us as authorized users to one of their cards with high limits and low balances. Each card 5+ years old. Would this help us? Since our scores are close to the 640 minimum we need for a mortgage, I'm just looking for a way to bump us up so we can get over 640 across the board. Would AU help us gain points? Would it hurt us in the underwriting process?
01-14-2013 06:59 PM
Thanks so much for your response! If you don't mind me asking, when were the applications that didn't require the AU be removed? I'm curious if these were recent applications with the last few years or prior to 2008. Thanks!!
01-15-2013 01:17 AM
Regardless of whether they ask for removal, they realize that they score they receive is not a score representing the consumer's actual credit history.
Having no way to block the credit history of the other party from the scoring, they cannot produce a score that is representative of the credit history only of the consumer.
They may thus choose to discount the affect of the score in their decision making.
If the boost provided by the AU is not substantial, the consumer might be better served by getting the AU status removed when apping for higher principal credit where a manual review is almost certain.