New Member
devon22ou
Posts: 11
Registered: ‎09-26-2012
Re: Authorized Users and Credit Scoring?

I was hoping this would be the best place to get the most accurate and true response. Can someone help us please?

Contributor
agforfree5
Posts: 109
Registered: ‎09-26-2012
Re: Authorized Users and Credit Scoring?

BUMP

Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
Re: Authorized Users and Credit Scoring?

devon22ou wrote:

Hello

 

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.

 

 

New Member
devon22ou
Posts: 11
Registered: ‎09-26-2012
Re: Authorized Users and Credit Scoring?

Thank you! I will try to see if that particular card has been discussed here to see if they report AU's. I am very strict with my cards and my credit is important to me so I will most definitely take your advice! 

Contributor
agforfree5
Posts: 109
Registered: ‎09-26-2012
Re: Authorized Users and Credit Scoring?

llecs wrote:

devon22ou wrote:

Hello

 

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.

 

 


Thanks,
I will also be looking into Chase to see if they report AUs on the Freedom.

New Contributor
Paperboy999
Posts: 73
Registered: ‎10-06-2012
Re: Authorized Users and Credit Scoring?

if i'm added on to an account as an AU will the history of the account go on my report? if the account has been opened for 10 yrs and I'm added, will it show on my report as a 10 yr old account or will it show as a 1 month old account lowering my average age of accounts? thank you 

11/09 EX 564
10/12 EX 673 TU 674
1/13 TU 686
2/13 EX 701
Goal 750+
Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
Re: Authorized Users and Credit Scoring?

Paperboy999 wrote:

if i'm added on to an account as an AU will the history of the account go on my report? if the account has been opened for 10 yrs and I'm added, will it show on my report as a 10 yr old account or will it show as a 1 month old account lowering my average age of accounts? thank you 


If added as an AU, and assuming the CC reports AUs, then you'll have the full benefit of the balance, CL, open date, payment history, etc., as a 10-yr TL on your CR(s).

New Member
devon22ou
Posts: 11
Registered: ‎09-26-2012
Re: Authorized Users and Credit Scoring?

Looking for some advice:

 

I have added someone as an authorized user on one of my cards. I am not allowing them to have their own card but am monitoring their monthly payments (I used my own card to make the purchase). I have considered adding them as an authorized user to may two other accounts that have been open for several years and have a decent credit limit. I will do the same thing, which is not allow them to have their own card or even make purchases on the account, but I have considered doing this solely to help their credit score. 

 

Would this be a good idea or a bad idea? Also, what could happen if or when they are removed as an authorized user?

 

Thank you

Valued Contributor
my-own-fico
Posts: 1,305
Registered: ‎01-05-2010
Re: Authorized Users and Credit Scoring?

devon22ou wrote:

 

I have considered doing this solely to help their credit score. 

 

Would this be a good idea or a bad idea?


 

I think it's a bad idea for you to add someone as an authorized user on one of your cards solely to help their credit score. It's taking advantage of a loophole, and it's not much different from humans feeding wild animals. There's one exception, which is the authorized user being a spouse in a household of joint income. That's just my take on it, but a potential lender may notice all of this when looking into the person's financial background. I'm sorry I can't be any nicer about this!

Would you mind if I ask where you have obtained the three scores in your signature? As myFICO doesn't offer EX, it could be they are not all FICO scores.

Are you living within your means?
New Member
devon22ou
Posts: 11
Registered: ‎09-26-2012
Re: Authorized Users and Credit Scoring?

Thank you for your response. I appreciate it. I dont want to get anyone in trouble. I just didnt know any better. My scores came from my credit report through my scoresense.com credit monitoring.