Do authorized users hurt my credit?

[takeshi74]

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@Anonymous wrote:

I want to add my parents as authorized users on my credit cards to get more cash rewards. However, they have a bankrupsty on file. I know being an AU, it helps your credit if used correctly since it's on your credit report, however, will any of their info or adverse crediton their own reports be linked to me in anyway?

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The tradeline reports on the AU's credit report.  Nothing from the AU's report is reported on the original cardholder's report.  As stated above, the danger an AU poses is in racking up charges that increase utilization.

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@Anonymous wrote:

Was curious to this question as well. But I am wondering if this really helps the AU's credit.

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Depends on the scoring model and creditor.  Some consider accounts where the person is an AU.  Some dismiss them.

[Anonymous]

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@Anonymous wrote:

Was curious to this question as well. But I am wondering if this really helps the AU's credit. For instance my mother is in a similar situation, currently has no credit cards and is requesting to be added onto mine as an AU, thinking it would help her rebuild history. With me keeping her designated cards as she refuses to use them. Will having the only active accounts being an AU help her in anyway?

Sorry for injecting another question....

From my limited experience it does.  Two months ago I added my g/ f to my Capitol Ventures Signature Visa and just other day she was able to get her own Cap One Ventures card (non signature).  At 34 she had absolutely no credit and now already she has a decent score

[RobertEG]

When you have the account history of another reporting to your file and included in your scoing, it immediately notified anyone reviewing your score that it is not representative of only your own credit history/risk.  Not being able to back out that account, it may cause a potential creditor to disregard the score as part of their decision making.

Having an AU with a good history report to your file is beneficial when the potential creditor relies only or promarily on your score, such as is common with lower CL cards.

It can be a good way to build/rebuild.

However, when you app for hgher CLs or princiapal amounts, lendors are more apt to also do a manual review, and seeing that your scoring is based at least in part on the credit history of another can become a negative in their decision making.