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Joint Account vs. Authorized User

Regular Contributor

Joint Account vs. Authorized User

Is there a difference in scoring for an authorized user vs. joint account holder? We're trying to get my wife's scores up. She's an authorized user on all 3 of my credit cards, has no credit cards in her own name. Her score is about 705 currently.

Any benefit to making her a joint account holder , and if so, can I make that change without having to open a new account?

We have a Cap1 Venture, Amex Skymiles Gold and Discover It.
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Fico Scores:
EQ - 811 (Feb '14)
TU - 829 (Mar '14)
EX - 814 (Mar '12) - Lender Pull
Message 1 of 5
4 REPLIES
Epic Contributor

Re: Joint Account vs. Authorized User

No, no scoring difference that I am aware of.

 

I don't see the benefit but that is my personal opinion. 

 

She would have to qualify for the card in order to be a joint user.  If she can do that I would just get one in her name.

 

 

Message 2 of 5
Moderator

Re: Joint Account vs. Authorized User


guiness56 wrote:

No, no scoring difference that I am aware of.

 

I don't see the benefit but that is my personal opinion. 

 

She would have to qualify for the card in order to be a joint user.  If she can do that I would just get one in her name.

 

 



None for FICO; however, internal underwriting at some lenders discount AU's.

 

On the other hand, I'm a pretty big fan from a financial defense perspective of not having shared accounts: if one of you needs to tank your credit report for whatever reason, the other can still access requisite credit when needed.  Joint accounts lose some of that flexibility if life goes sideways, as AU's can always be removed and the vast majority of lenders will airstrike the AU off the credit report.  Amex is the one exception to that I'm aware of, there may be others.

 

Guin, I'm not so sure on credit card joint / co-signed, mortgage it's the lower of the scores, auto though it's the higher of the pair; I don't know where joint CC's fall?  I don't think it's straight qualification though.

 

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


Take the myFICO Fitness Challenge
Message 3 of 5
Epic Contributor

Re: Joint Account vs. Authorized User


Revelate wrote:

guiness56 wrote:

No, no scoring difference that I am aware of.

 

I don't see the benefit but that is my personal opinion. 

 

She would have to qualify for the card in order to be a joint user.  If she can do that I would just get one in her name.

 

 



None for FICO; however, internal underwriting at some lenders discount AU's.

 

On the other hand, I'm a pretty big fan from a financial defense perspective of not having shared accounts: if one of you needs to tank your credit report for whatever reason, the other can still access requisite credit when needed.  Joint accounts lose some of that flexibility if life goes sideways, as AU's can always be removed and the vast majority of lenders will airstrike the AU off the credit report.  Amex is the one exception to that I'm aware of, there may be others.

 

Guin, I'm not so sure on credit card joint / co-signed, mortgage it's the lower of the scores, auto though it's the higher of the pair; I don't know where joint CC's fall?  I don't think it's straight qualification though.

 


With a joint account  both parties income, assests and credit scores are looked at.  If one doesn't meet the requirements of the CCC then either the application can be turned down, only one applicant accepted or both approved but with higher interest rates.
Message 4 of 5
Moderator

Re: Joint Account vs. Authorized User

Interesting, sounds like it varies by individual lender underwriting and hard to say how it's really looked at? Or did one of our old underwriter members at one point give an explicit statement and I unfortunately missed it?
Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 758, EX 2 758, EQ 8 795, TU 8 762, EX 8 786 (7/28/17)
Goal Score:    EQ 5 750, TU 4 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


Take the myFICO Fitness Challenge
Message 5 of 5