Re: Authorized Users and Credit Scoring?
01-23-2012 07:15 PM
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?