Re: Authorized Users and Credit Scoring?
10-01-2012 04:00 PM
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!
YMMV on the CC. Some report on one, two, or three of the CRAs, and some not at all. It depends on the creditor.
When you are added as an AU, all they need is your name. Somehow through all-seeing super-banking eyes, they somehow know where to report. I know it seems weird that they wouldn't need a SSN, but virtually all AUs only need a name and yet they report. If they do report, the entire TL will show exactly as if it were own accounts, except that it says "authorized user" within the responsibility field. The history, good or bad, the balance, the CL, the acct number, and everything else will still show within your reports.
Just remember, if granting AU status, if they rack up a zillion dollars in purchases, you are responsible for those payments. Be sure you make the payments, not them. Have them pay you. And for goodness sakes, limit AUs to immediate family (e.g. spouse, kiddo).
Do a search in here to see if that given card reports AUs.