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Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: Authorized Users and Credit Scoring?

I am not keen on adding AUs for a more practical reason.

Everything else related to FICO scoring isolates your scoring to your own personal management of credit.  That even includes no merging of scoring based on marriage.

AUs are the exception. 

Aside from the actual scoring inflation, when a creditor is considering an app for credit based on inclusion of the history of another in your scoring, how are they to use your score should they want to determine your actual payment risk?  Not having their own FICO algorithm, they cant.

They have no way of separating your contribution in the score from the joint scoring with the AU history, other than a guesstimate.

It thus, at least in my opinion, may result in their discounting of your entire FICO score in their decision making.

Valued Contributor
my-own-fico
Posts: 1,141
Registered: ‎01-05-2010

Re: Authorized Users and Credit Scoring?


RobertEG wrote:

I am not keen on adding AUs for a more practical reason.

Everything else related to FICO scoring isolates your scoring to your own personal management of credit.  That even includes no merging of scoring based on marriage.

AUs are the exception. 

Aside from the actual scoring inflation, when a creditor is considering an app for credit based on inclusion of the history of another in your scoring, how are they to use your score should they want to determine your actual payment risk?  Not having their own FICO algorithm, they cant.

They have no way of separating your contribution in the score from the joint scoring with the AU history, other than a guesstimate.

It thus, at least in my opinion, may result in their discounting of your entire FICO score in their decision making.


 

I touched on the shared household income in another thread, so I'll just note here for income that's not shared that there are probably individuals who are thick on others' credit and thin on their own. Wouldn't skimming a credit report adequately satisfy the trained eye? Maybe the decision maker could have in place a threshold ratio of total credit for AU vs own?

When it comes to wishful thinking vs reality, wishful thinking wins.
Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: Authorized Users and Credit Scoring?

The trained eye would have to be able to calculate a FICO score, excluding the AU information.

Not even trained eyes have access to the proprietary FICO scoring algorithm, so no score could be produced.

Sure, one could view the CR and guess at the outcome, but then the entire FICO score becomes meaningless.

Valued Contributor
my-own-fico
Posts: 1,141
Registered: ‎01-05-2010

Re: Authorized Users and Credit Scoring?


RobertEG wrote:

The trained eye would have to be able to calculate a FICO score, excluding the AU information.

Not even trained eyes have access to the proprietary FICO scoring algorithm, so no score could be produced.

Sure, one could view the CR and guess at the outcome, but then the entire FICO score becomes meaningless.


 

It could be said though that if one were to extract any AU and joint impact from the credit picture, one would put into doubt the ability of FICO to take into account such a factor, and where does it stop?

What if I fell behind paying the mortgage by myself and wasn't qualified for extra credit cards? What if DW likewise? Would such an individuality be any more realistic? The entire FICO score becomes meaningless.

Inspired by the intent to isolate, I looked into what my score would be without the AU cards provided by DW and also what her score would be without the AU cards provided to her by me.

It's highly unscientific, but I dusted off my own informal mini FICO toy approximator, a script that I once wrote to see how close I could get to what the EQ algorithm spits out.

It would appear I would lose ~10 points, due to her old Amex account, and she would gain ~5. No call for breaking up, we were married and had shared income already then.

The question is if we are fuller individuals when isolated or when sharing. Where would modern civilization be if not for interacting with each other? Would there be any Fair Isaac Corporation?

When it comes to wishful thinking vs reality, wishful thinking wins.
New Contributor
anh2lua
Posts: 64
Registered: ‎06-22-2011

Re: Authorized Users and Credit Scoring?

I am still confused.

 

So, if my wife added me to her AMEX CC as AU.  Her credit limit is 10k and she max it out.  Will that impact my credit score as well? 

FICO scores Experian: 693; Equifax: 656; TransUnion: 707

Goal: 700+ on at least two reports
Moderator
pizzadude
Posts: 8,727
Registered: ‎01-28-2010

Re: Authorized Users and Credit Scoring?


anh2lua wrote:

I am still confused.

 

So, if my wife added me to her AMEX CC as AU.  Her credit limit is 10k and she max it out.  Will that impact my credit score as well? 



Yes.   It will be factored into your AAoA and her previous payment history will be on your report as well.

 

If it is a Charge Card the balance is only factored into %util on the TU98 FICO version ( MyFICO ), it is ignored by other FICO versions.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
New Visitor
Anonymous001
Posts: 1
Registered: ‎07-19-2012

Re: Authorized Users and Credit Scoring?

I am pondering adding a relative to a credit card as an AU.  How, if at all, does this impact my or other existing AU's credit score?  Thanks in advance for your expertise!

Moderator Emeritus
MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009

Re: Authorized Users and Credit Scoring?


Anonymous001 wrote:

I am pondering adding a relative to a credit card as an AU.  How, if at all, does this impact my or other existing AU's credit score?  Thanks in advance for your expertise!


Hello and welcome to myFICO.

 

Adding someone to one of your accounts as an AU has no effect on your credit whatsoever as long as they don't have access to a card. But if they happen to charge something and it raises your uitilzation then yes that could have an impact on your credit as well as any other AU's on your account(s). 

 

So the best thing to do, in my opinion, is to add someone but not allow them any access to a card.

New Member
devon22ou
Posts: 11
Registered: ‎09-26-2012

Re: Authorized Users and Credit Scoring?

Hello

 

I have a similar question about adding authorized users to an account. This is my first time doing this. I have tried to find answers online and even asked credit cards directly and have been given contradicting answers.

 

I, today, just added an authorized user to an Old Navy Visa credit card. I was told by a representative that the information from this credit card would be reflected on the authorized users credit report. When I asked how this could happen when they were only given a name, the person could not answer my questions so she transferred me to a supervisor. The supervisor then told me that as of 2011, account/credit card information IS NOT reflected on an authorized user's credit report. So, which is true?

 

I am hoping to assist in building the authorized user's credit score. I will not allow them access to the card, but I will be monitoring (approving) purchases and making sure payments are made on time.

 

I also read somewhere that whether or not account information is reported to the AU's credit report is up to the credit card peoples.

 

Can someone help me understand? If I am not able to help their credit score, I have no reason to have them as an authorized user. Thank you in advance for your help!

Contributor
agforfree5
Posts: 109
Registered: ‎09-26-2012

Re: Authorized Users and Credit Scoring?


devon22ou wrote:

Hello

 

I have a similar question about adding authorized users to an account. This is my first time doing this. I have tried to find answers online and even asked credit cards directly and have been given contradicting answers.

 

I, today, just added an authorized user to an Old Navy Visa credit card. I was told by a representative that the information from this credit card would be reflected on the authorized users credit report. When I asked how this could happen when they were only given a name, the person could not answer my questions so she transferred me to a supervisor. The supervisor then told me that as of 2011, account/credit card information IS NOT reflected on an authorized user's credit report. So, which is true?

 

I am hoping to assist in building the authorized user's credit score. I will not allow them access to the card, but I will be monitoring (approving) purchases and making sure payments are made on time.

 

I also read somewhere that whether or not account information is reported to the AU's credit report is up to the credit card peoples.

 

Can someone help me understand? If I am not able to help their credit score, I have no reason to have them as an authorized user. Thank you in advance for your help!


I have had a very similar experience and I am looking for an answer as well.. anyone?


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