Re: Authorized User Accounts
12-03-2012 06:47 AM
Why don't you cosign for them or have them start by opening am account at a credit union. My credit union will with a $ 100 limit. Or have them get a secured account. These are great for teenagers that have just turned 18 years old. The reason the changes were made is because the score is there to measure an individual's credit risk or credit worthiness. A score that is just given to someone as a result of piggybacking or borrowing a trade line from another person has no way of doing that. There are some lenders that will not use an authorized user account for those reasons & Chase Bank is one of them. I also just listened to a segment online a few days ago & fico will not include authorized users by this September. Just look at all the mortgage loans & other types of credit that people have gotten in 2008 or before that should never have gotten them in the first place. Let me ask you this questions. If your son or daughter has nothing but authorized user accounts on their credit profile with Equifax, Experian, & Transunion, then how is the lender supposed to determine what kind of credit risk they may be???? It also depends on who you talk to and what their point of view is on this. I have talked to different creditors, executives in the credit bureaus, & some of our law makers in Washington, DC to which this has gotten their attention. Some of them have expressed the same concern as if you were to compare it to the credit crisis in 2008 where many have gotten credit that never should have in the first place. On a last note it is only a certain time before more changes are made. And one of them includes a compete ban of authorized user accounts being on any credit report with the three major bureaus.