Authorized User

[Anonymous]

I was wondering if being added as an authorized user on MY WIFE'S store charge card (it's not VISA or anything, but still revolving credit) would raise my credit score at all.  I'm just shy of getting a lower interest rate on my home loan, which I've already been pre-approved for.  I've paid off all unpaid balances on my report, so now all I can do is wait.  However, since I am also about to purchase a home, waiting may not be an option if I want to float down.  I know that there has been such a misuse of this practice that new legislation either has or will be in place very soon to negate its effects.  Will this affect legitimate cases of authorized usership, such as husband-wife?  Has that legislation gone into effect yet?  I really don't need much of a boost.

Message Edited by tonytouch on 07-14-2008 06:57 PM

[RobertEG]

tony, there are no laws in effect or legislation pending that regulates AUs.  They are unregulated.

It is simply a practice that is accepted by the three CRAs, governing what they will include in their credit report data.  The current efforts to eliminate AUs from credit scoring come, not from regulation, but from FairIsaac, and from manual reviews by some creditors,who are discounting their presence in their credit decisions. 

You are seeking AU status from your spouse.  But the real misuse of AU status has arisen from the blind selling of AU status to third parties.  AU status tells the lendor nothing of the real credit status and history or the actual applicant  It is blatant abuse, in the eyes of many, and has become a cottage business that subverts the FICO risk analysis of the actual creditor.  It must die.

 FairIsaac, in their currently marketed release desingated FICO 08, disregards any AU account, even if reported to the CRAs.  But FICO 08 is not yet the industry standard, and thus AU accounts are still scored.

The impact on your addition as an AU to your wife's account is not a simple yes or no.  Her entire account history will be added to  your credit report.  Is her credit history longer than yours? Are there dergogs on her account? 

You ask a complicated question, with only opinionated, and not definitive, IMHO, answers.

Message Edited by RobertEG on 07-14-2008 08:24 PM

[haulingthescoreup]

---

@RobertEG wrote:

....The impact on your addition as an AU to your wife's account is not a simple yes or no. Her entire account history will be added to your credit report. Is her credit history longer than yours? Are there dergogs on her account?

---

Actually, the only thing that will be added to your report is the history on that one card. (I think RobertEG said that, but it kind of read as if it said that your wife's entire overall credit history would be added.) She could have horrible overall history, but that particular card could be clean as a whistle, probably helping you. The reverse might also be true: she might have great credit overall, but there might be late payments or high util on that individual account.

If you want to mooch some good history from one of your wife's accounts, here's what you look/ hope for:

- low to $0 util (balance reported on statement divided by credit limit of account
- clean: no lates, no derogatories of any kind
- open a long time --at least as long as your current average history.

You also want to confirm that the card will report to your own credit reports! Many AU accounts don't.

I'm AU on one of my husband's card for the age of the card, but I don't use it. IMO, it's his card, not mine. I appreciate him allowing me to put my name on it to help for the time being, but I don't feel that it's my account, so I wouldn't consider using it. HTH

Message Edited by haulingthescoreup on 07-15-2008 04:07 AM