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Frequent Contributor
MrCredit
Posts: 420
Registered: ‎11-13-2008

Authorized Users and Credit Scoring?

Are authorized users credit cards still counting in the FICO formula? I am wondering if I add someone

to my account if their score will go up still or is that since been discounted from the scoring calculations on

FICO?

PSECU Visa $20,000, Amex SPG $1,000, (What a joke!) Amex Platinum NPSL, PSECU LOC $20,000, BOA Amex $18,500,Fidelity Rewards Amex $10,000, Fidelity Rewards Visa Sig $7,500, Citi Diamond Preferred MC $8,300, Citi AA Advantage $8,500, WF Plat $10,000, Chase Sapphire Preferred $19,000, Chase Marriott Rewards $17,000, Lowes $10,000 (For the life of me they wont go above this),Kohls Charge $1,000
Moderator
pizzadude
Posts: 8,544
Registered: ‎01-28-2010

Re: Authorized Users and Credit Scoring?

Yes ~ AUs are still factored into your FICO score. There was talk at one point about FICO changing that, but they backed away.

Adding someone as an AU to your CC will add it on to their Credit report, including the balance, CL, payment history, etc. so obviously you want to make sure that you add them to a card in good standing.....
March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Super Contributor
CS800
Posts: 6,546
Registered: ‎04-07-2008

Re: Authorized Users and Credit Scoring?

And the beauty for the AU, no HP on your reports




Contributor
poops
Posts: 76
Registered: ‎04-11-2007

Re: Authorized Users and Credit Scoring?

What happens if the AU is removed from the CC by the owner of the card? Does the account info still appear on the AU's CR after being removed from the account?

Moderator
pizzadude
Posts: 8,544
Registered: ‎01-28-2010

Re: Authorized Users and Credit Scoring?


poops wrote:

What happens if the AU is removed from the CC by the owner of the card? Does the account info still appear on the AU's CR after being removed from the account?


Sometimes yes, sometimes no.   It depends on the Creditor's procedures.   In either case if the Ex-AU wanted it removed they could dispute it with the CRA....

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Regular Contributor
ccb2115
Posts: 190
Registered: ‎11-23-2011

Re: Authorized Users and Credit Scoring?


poops wrote:

What happens if the AU is removed from the CC by the owner of the card? Does the account info still appear on the AU's CR after being removed from the account?


This actually happened to me. When my uncle removed me as an AU to his AMEX it was removed from EX, but EQ and TU, which is why my EX score is lower than my two other scores. I wasn't really sure what the "right" procedure was for this, so I called AMEX and asked why it was no longer reporting on EX, but was still on TU and EQ. They said, "Oh, I'm so sorry sir, we will remove it from TU and EQ by next week." My heart skipped a beat and I yelled NO!!! I want it to report!! I  just wanted it to also report on EX. She said "No, we cann't do that, but I will keep it on you TU and EQ. I just want you to keep in mind that this is being incorrectly reported". 

 

Thank god my uncle was willing to put me back on.

My Wallet: Amex PRG, Amex ZYNC, Amex BCE: 1k, Barclays iTunes: 1.2k, Discover IT: 5k, Citi Diamond: 1.8k, Capital One Secured: 600
Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: Authorized Users and Credit Scoring?

Grant or termination of AU status is not mentioned or controlled under the FCRA.  It is at the discretionon  of the creditor.  So is the practice of including the credit history of another in a consumer's scoring.

The FRCA does not control reporting to a consumer's credit file when the consumer is not a creditor.  Some creditor are now restricting grant of AU status only to immediate family members, and others have discontinued the practice completely.

 

If AU status is terminated in some manner that violates other federal laws, such as being based on age, race, etc. discrimination, recourse would be through that statute, not the FCRA.

The fact that FICO chooses (or is forced to) score AU reporting is a private business matter.  The FCRA does not regulate the innards of credit scoring.

 

 

New Visitor
rpineda
Posts: 1
Registered: ‎01-23-2012

Re: Authorized Users and Credit Scoring?

What is the best credit card to be an authorized user on?  By that question I mean, fastest at reporting.  Also, my mom added me to her Sears Mastercard, but they didn't ask for a SSN or anything other than my name.  I am assuming that it will not be added to my credit report.  Is that accurate?

Moderator
pizzadude
Posts: 8,544
Registered: ‎01-28-2010

Re: Authorized Users and Credit Scoring?

 

I honestly don't know which cards would report fastest....but they can add it to your CR without getting your SSN directly.   They can do it with name & address I think....

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Valued Contributor
my-own-fico
Posts: 1,116
Registered: ‎01-05-2010

Re: Authorized Users and Credit Scoring?


rpineda wrote:

What is the best credit card to be an authorized user on?  By that question I mean, fastest at reporting.


 

All my cards (Visa, MC, Amex, Discover) thankfully report fast at this time. EX picks them up in 1-2 days after the statement date (the end of the billing cycle), EQ 3-4 and TU 4-5.

It wasn't always so, as Amex would take close to a month, but not anymore. I can generally predict quite accurately when myFICO's Score Watch will send me an alert with an updated score.


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