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Established Contributor
Lasardo
Posts: 746
Registered: ‎04-26-2012
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Authorized user used to boost score.

[ Edited ]

I was advised to post my question on the credit card side, I was told you guys are experts so here goes.... I am trying to rebuild my credit. I opened 2 secured cards from cap 1 and 1 unsecured from First premier (only ones that would give me credit) My friend put me on their Amex and my score jumped overnight 30 points. I need additional points so they are planning to add me to their oldest accnt, JCpenny. My understanding is I need to be on their for 6 months at least for their GOOD credit history even impacts me . Will a department store card even make much of a difference. When I try to take out a loan will being on someone else's accnt come into question? Any and all advise welcome.

 

(Moved here to Understanding FICO Scoring for best response, as question is primarily about scoring effects of AUs/credit cards. - Scamp, Mod)

CS 728- 01/13 from 554-12/11
Goal: 800
Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
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Re: Authorized user used to boost score.

If the JCP is added, it doesn't need to be on there for 6 months to add the history. When the AU is added, it is instant history (provided it isn't brand new).

 

Adding it really won't improve the mix due to the Amex (assuming it's a charge). It can improve your overall length of history and/or AAoA if old. If the CC is years old and free of baddies, then as far as FICO is concerned, the day you add it is will be scored as a very old account free from blemishes.

 

CC utilization also would be an impact when adding an AU.

 

YMMV on the loan. If FICO is used only, then the AU will be viewed just as if it were yours. If under a manual review, they might call it into question. If they use their own internal score, like GECRB, then they can choose whether or not to include AUs.

 

 

Mega Contributor
RobertEG
Posts: 17,694
Registered: ‎03-19-2007
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Re: Authorized user used to boost score.

If a credtior chooses to do a manual review of your credit report, there is a reason.  They are looking for more than just a three-digit credit score.

 

Seeing the credit history of another as part of your data for score calculation would obviously bring into question the amount of score "inflation" (or even deflation) caused by that history.  If they then wish to use a FICO score that reflects only your own, personal risk based on your own history, they simply have no way to do that.  They cant run their own FICO score, isolating that history.

 

Of course, the amount they might discount your score in their decision-making is up to them.  But it might be a factor.

Frequent Contributor
JPersat
Posts: 299
Registered: ‎05-28-2012
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Re: Authorized user used to boost score.

Does it affect the person allowing you to be added on?

Starting Score: 492 02/12
Current Score: TU: 668 (FICO), EQ: 668 (FICO). EX: 651(lender pull 9/27/12)
Goal Score: 660



Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
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Re: Authorized user used to boost score.


JPersat wrote:
Does it affect the person allowing you to be added on?


Not at all, unless the AU runs up the CC and fails to pay it.

Valued Contributor
AndySoCal
Posts: 1,937
Registered: ‎04-07-2009
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Re: Authorized user used to boost score.

The impact of an authorized user account depends on which FICO model that is being used IE FICO08, Beacon 9 etc.

If is FICO 08 the amount of the increase (if any) would not  be same as older versions of the FICO score.  Please refer the FICO 08 specs on FICO's website.

Equifax My FICO score 815 5/28/2012, 818 on 7/28/2014 . Average of Accounts 12 years and no Installment accounts. MyFICO TU 810 6/26/2012 809 4/21/2013 MyFICO XPN -805. 2/26/2014 Discover TU FICO 813 App free since 9/2011
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Revelate
Posts: 9,465
Registered: ‎12-30-2011
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Re: Authorized user used to boost score.


AndySoCal wrote:

The impact of an authorized user account depends on which FICO model that is being used IE FICO08, Beacon 9 etc.

If is FICO 08 the amount of the increase (if any) would not  be same as older versions of the FICO score.  Please refer the FICO 08 specs on FICO's website.


I don't think that's unilaterally correct and impossible to prove regardless based on the anecdotal evidence on this forum or by what FICO themselves have stated from what I've read.  If you have a specific announcement from Fair Issac I'd be interested in reading it especially if I'm incorrect on this point.

 

They backed off the complete airstrike of AU's in the FICO '08 model, and the artificial score deflation that would occur in the give or take 1-2M users who were legitimate AU accounts (spouses pimarily and perhaps adult children) and who would have no FICO score if not for those.  There was some blurb about the algorithm's only taking reasonable AU accounts into consideration in an attempt to prevent the abuse of selling tradelines which occurred under the older models; however, this is probably in conjunction with the lenders' reporting I'd estimate as I don't know if FICO or anyone else has any capability to look at multiple datasets in a single lookup without violating various privacy constraints.  Even a joint or co-signed application is two separate pulls from an approval perspective, with both parties consent.

 

 

 

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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Valued Contributor
AndySoCal
Posts: 1,937
Registered: ‎04-07-2009
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Re: Authorized user used to boost score.

 

Revelate,

 

Click on the link below then scroll  down doe proection from authorized user abuse.

 

http://www.fico.com/en/Products/Scoring/Pages/FICO-score.aspx

 

 

 

 

Equifax My FICO score 815 5/28/2012, 818 on 7/28/2014 . Average of Accounts 12 years and no Installment accounts. MyFICO TU 810 6/26/2012 809 4/21/2013 MyFICO XPN -805. 2/26/2014 Discover TU FICO 813 App free since 9/2011
Established Contributor
Lasardo
Posts: 746
Registered: ‎04-26-2012
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Re: Authorized user used to boost score.

I posted this question 2x , apologies, still learning. I did not select the "email me when someone replies" on this particular post.. please delete This post.
CS 728- 01/13 from 554-12/11
Goal: 800
Moderator
Revelate
Posts: 9,465
Registered: ‎12-30-2011
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Re: Authorized user used to boost score.


AndySoCal wrote:

 

Revelate,

 

Click on the link below then scroll  down doe proection from authorized user abuse.

 

http://www.fico.com/en/Products/Scoring/Pages/FICO-score.aspx

 

 

 

 


I can't find that on the page?

 

I know what FICO released to the press around the FICO 8 / AU-ignore retraction.  I know that they said they had something in place to allow legitimate AU's to be counted (family members, spouses certainly, are legitimate uses) but some unannounced (go figure!) method of preventing the more abusive scenarios, but did they post something more specific on that?

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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