topic Re: Authorized User in Credit Cards

Authorized User

Broke_Triathlete — Sun, 23 Nov 2014 19:15:56 GMT

I know. This is the millionth thread about this subject, but after searching I'm only finding general information, and I'm still left with questions.

My basic information is in my sig as far as my cards, limits, etc. I have had perfect payment history since post BR. My AAoA is 7.5 months according to CK. I am expecting pretty big increases with both of my cap one cards with the steps since I've gone through north of $10K since I opened the accounts, and hopefully my Barclay.

My GF has perfect payment history on all of her accounts, and she's at a CS of 758 average. She asked what I want for Xmas and I asked her to put me as an AU on her cards. She has agreed. She has had the 1 card for 6 years and the other one for 3 with the limits at $7K and $5K, so for right now they would be my highest limit cards and oldest accounts.

So I thought we should get some solid answers before I went through with this as both of us don't thorougly understand the ramifications of adding me as an AU on her accounts. In April of 2015 I will be 2 years post BR discharge so I planned on applying for 2...maybe 3 cards at that time. So my AAoA is going to take another hit at that point if I get approved. I'm not sure if that is relevant or not but I figured I would mention it in case if it does.

The two cards in question:

1) BOA Cash Rewards

2) Publix CU

Here are the questions we have come up with.

1) Does adding me as an AU affect her negatively in any way? To my understanding the only thing that could negatively affect her is if I go and max the card out she'll be stuck with a higher utilzation not to mention a maxed card. Basically she's just liable for what I do with her card. My BR or anything of my negative past does not affect her, correct?

2) Does my AAoA go down if added? Does hers? Or does my AAoA go up since both her accounts are way older than any of mine?

3) Do I inherit on my CR the reporting for the whole time the account has been active or just from the point that I'm added as an AU?

4) Her lmits get added to mine so I'll have another $12K of padded utilization? Or is that not factored at all?

5) Do I have to actually use the cards to report positively on my report, or can I SD them and reap the benefits from her use of her cards? My thoughts were to throw them in my rifle safe and not touch them. She mentioned that I may have to use them to have a positive reporting.

6) Do you know for these two specific cards I set up my own online account, make my own payments, or is she responsible for paying whatever I spend on the cards (of course I would pay her for what I spend...lol)

7) Her utilization is a little higher than the ideal 10-30% due to all the triathlon races we've been booking, etc. Will that effect me? If God forbid she happened to miss a payment, does that affect me?

8) Will by adding me higher my chances of getting my own cards with PFCU? I know BOA won't touch my because my dad ran up $100,000 in cards with them and I had to include them in my BR.

9) Now that I just posted #8 will that affect my approval as an AU of BOA or would that look bad upon her for adding someone that included them in my BR?

Ultimately we are looking to improve my situation but not affect hers in anyway. Is that possible or will it be a give and take scenario?

As always, thanks for all the knowledge I've learned from this board. She complimented me today saying how she likes how I manage my accounts daily and such. I explained to her that if she's been where I've been, especially due to someone else's doing, that she'd be doing the same thing too. Of course I wouldn't have learned as much as I have without this forum.

Re: Authorized User

Kostya1992 — Sun, 23 Nov 2014 20:12:10 GMT

1. She can only be negatively affected if you max out the card/get it sent to collections.

2. Yours will go up. Hers wont be affected.

3. You inherit AAoA from date opened. Your report will only start recording details from the date you get added.

4. Util will get factored from what I know.

5. SD perfectly fine.

6. You can't set up your own account using your SSN and add her credit card to it which has her SSN. To the best of my knowledge, no.

7. It will affect your score, including missed payments. If that happens you can always remove yourself from her cards and get it removed from CRAs all together without any problems.

8. Possibly. YMMV.

9. I don't see any issue of adding you as AU on BoA. She is responsible at the end of the day.

Re: Authorized User

Broke_Triathlete — Sun, 23 Nov 2014 20:23:15 GMT

@kostyan1992 wrote:
1. She can only be negatively affected if you max out the card/get it sent to collections.

2. Yours will go up. Hers wont be affected.

3. You inherit AAoA from date opened. Your report will only start recording details from the date you get added.

4. Util will get factored from what I know.

5. SD perfectly fine.

6. You can't set up your own account using your SSN and add her credit card to it which has her SSN. To the best of my knowledge, no.

7. It will affect your score, including missed payments. If that happens you can always remove yourself from her cards and get it removed from CRAs all together without any problems.

8. Possibly. YMMV.

9. I don't see any issue of adding you as AU on BoA. She is responsible at the end of the day.

Thanks for your post! So by adding her accounts my AAoA should sky rocket comparitively speaking. That's great news. So in reality I could be put on a for a few months to boost my AAoA, then remove myself and I'll have a 6 year account on my report positive for 10 years?

Re: Authorized User

MarineVietVet — Sun, 23 Nov 2014 22:32:47 GMT

@kostyan1992 wrote:

3. You inherit AAoA from date opened. Your report will only start recording details from the date you get added.

For most CCC's the AU will inherit the entire history of the account and not just from the date the AU is added.

That's one of the biggest benefits of being an AU.

Re: Authorized User

MarineVietVet — Sun, 23 Nov 2014 22:34:46 GMT

@Broke_Triathlete wrote:
Thanks for your post! So by adding her accounts my AAoA should sky rocket comparitively speaking. That's great news. So in reality I could be put on a for a few months to boost my AAoA, then remove myself and I'll have a 6 year account on my report positive for 10 years?

Unfortunately no. Just as you will get benefit from being added once you are removed you'll lose all that history.

Re: Authorized User

Broke_Triathlete — Sun, 23 Nov 2014 22:40:36 GMT

@MarineVietVet wrote:
@Broke_Triathlete wrote:
Thanks for your post! So by adding her accounts my AAoA should sky rocket comparitively speaking. That's great news. So in reality I could be put on a for a few months to boost my AAoA, then remove myself and I'll have a 6 year account on my report positive for 10 years?
Unfortunately no. Just as you will get benefit from being added once you are removed you'll lose all that history.

I figured that was the case. So what's the real benefit of being added as an AU if the benefits don't last for ever? I wouldn't want to build up a nice AAoA (a lot of what I'm lacking now) just to have it erased down the road if I was to remove myself. I'm sure that would yield a huge drop in my CS.

Re: Authorized User

Broke_Triathlete — Sun, 23 Nov 2014 22:41:57 GMT

I mean forever as in 10 years of positive reporting.

Re: Authorized User

MarineVietVet — Sun, 23 Nov 2014 23:04:52 GMT

@Broke_Triathlete wrote:
I figured that was the case. So what's the real benefit of being added as an AU if the benefits don't last for ever? I wouldn't want to build up a nice AAoA (a lot of what I'm lacking now) just to have it erased down the road if I was to remove myself. I'm sure that would yield a huge drop in my CS.

Adding AU's was never meant to be a permanent solution IMO. It was a way for those with bad credit/rebuilders/those with thin files to get a temporary boost until their own credit profiles improved and they were able to move forward without help.

ETA: I have both my sons as AU's on my CC's but at some point in the future I will remove them and they can sink or swim on their own.

Re: Authorized User

Broke_Triathlete — Mon, 24 Nov 2014 00:23:40 GMT

@MarineVietVet wrote:
@Broke_Triathlete wrote:
I figured that was the case. So what's the real benefit of being added as an AU if the benefits don't last for ever? I wouldn't want to build up a nice AAoA (a lot of what I'm lacking now) just to have it erased down the road if I was to remove myself. I'm sure that would yield a huge drop in my CS.
Adding AU's was never meant to be a permanent solution IMO. It was a way for those with bad credit/rebuilders/those with thin files to get a temporary boost until their own credit profiles improved and they were able to move forward without help.

ETA: I have both my sons as AU's on my CC's but at some point in the future I will remove them and they can sink or swim on their own.

OIC. So is it worth it for me in my situation to be put on her cards? So this would be something good to be put on for a year or two?

Re: Authorized User

MarineVietVet — Mon, 24 Nov 2014 03:17:21 GMT

@Broke_Triathlete wrote:
OIC. So is it worth it for me in my situation to be put on her cards? So this would be something good to be put on for a year or two?

Only you can make that decision.

Yes it can help you IF an account is older than any of yours (older than your current AAoA is even better), IF the payment history is long and clean, IF the utilization is very low, and IF it will report to the CRA's. Not all cards will do this. You need to ask the company first.

As mentioned you will inherit the entire history of these accounts and if one or more starts to go south your credit will be affected as well.

One advantage of the process is you can be added and removed quickly if need be.

Re: Authorized User

techiegirl — Mon, 24 Nov 2014 04:44:05 GMT

Many years ago when we were first married, DH had just filed for BK a couple of years prior and had only a secured credit card. I added him as AU on several of my cards, including Amex, even though they fought me every step of the way (Amex had blacklisted him). It's helped his credit over the years, I'm sure. Until recently his score was higher than mine. Currently he's at 804/813 (based on Amex and Discover FICO).

Basically, it will help you get back on your feet as long as your GF has and maintain good credit and low util.

Re: Authorized User

Broke_Triathlete — Mon, 24 Nov 2014 19:21:30 GMT

If I was added and we set my spending limit to $100...would I get credit for the full $7000 limit or just the $100?

Re: Authorized User

MarineVietVet — Mon, 24 Nov 2014 19:29:18 GMT

@Broke_Triathlete wrote:
If I was added and we set my spending limit to $100...would I get credit for the full $7000 limit or just the $100?

The entire $7,000 CL would show on your reports. You just couldn't charge more than $100.

Re: Authorized User

Broke_Triathlete — Mon, 24 Nov 2014 20:39:07 GMT

Thanks Marine!!

Re: Authorized User

MarineVietVet — Mon, 24 Nov 2014 21:27:49 GMT

@Broke_Triathlete wrote:
Thanks Marine!!

Glad to help. All I ask is that you pay this forward at some point in the future.

Re: Authorized User

Broke_Triathlete — Sun, 30 Nov 2014 21:33:35 GMT

I will. Anytime I can offer help I do. Have a great day.

Re: Authorized User

tendertan — Thu, 18 Dec 2014 04:23:32 GMT

so are you saying the AU have to use their card, to get credit for getting added?

Re: Authorized User

Anonymous — Thu, 18 Dec 2014 19:31:52 GMT

I was also wondering if the AU has to use the card to report positively on credit?

Re: Authorized User

Anonymous — Thu, 18 Dec 2014 20:07:43 GMT

@tendertan wrote:
so are you saying the AU have to use their card, to get credit for getting added?

No.. You get the credit or discredit no matter whether you ever use the card or not. A lot of AUs are added and never see the card

Re: Authorized User

Anonymous — Thu, 18 Dec 2014 20:09:59 GMT

No spending necessary.