topic Re: Authorized user question in Credit Cards

Authorized user question

Anonymous — Thu, 26 Mar 2015 14:25:20 GMT

Hello everyone, I'm new to the board, and I have a question about being an authorized user on someone else's card.

If I get on someone's card, do I also take on their credit history, or just the history of their card useage? I know I shouldn't sign on if they don't regulary keep their card under 25% or so, but I trust them, and they are very responsible with their card. I am going to get my own card within a month, but I wanted a higher score so I could get a better rate when I do apply.

Also, @ how many points on aveage should I expect my score to go up, and how soon will it show on my credit report?

Thanks for any advise you can provide.

Re: Authorized user question

ADARPegasus — Thu, 26 Mar 2015 14:32:40 GMT

First Of All Welcome To The Board!

You will get the entire history of that card on your credit and also it depends on what FICO model is used. The 08 model will count the authorized user card and the newer FICO system does not. But my score increased dramatically with a 12 year old authorized user card that my Grandmother added me on in 2014 it went up about 60 points because all of a sudden. I had a payment history. Whats on your credit now?

Re: Authorized user question

chally — Thu, 26 Mar 2015 14:42:35 GMT

I don't think your credit score is effected really by virtue of being added as AU from an AAoA standpoint, nor does utilization of primary have impact.

When I pulled my Transunion CR a few days ago, it showed total balance between all cards both as primary and AU, but my actual utilization was calculated from primary accounts only. This is what will impact your score.

I would expect new AU to show at CB a few days after statement cuts.

Re: Authorized user question

chally — Thu, 26 Mar 2015 14:44:43 GMT

But my score increased dramatically with a 12 year old authorized user card

Wow, learn somethin new every day!

Re: Authorized user question

ADARPegasus — Thu, 26 Mar 2015 14:48:07 GMT

Yea but when credit card companys looked closer at my credit they noticed it was a AU card. So it only helps the score!

Re: Authorized user question

Anonymous — Thu, 26 Mar 2015 14:56:35 GMT

Thanks Jon,

I'm exactly sure what you mean by what's on my credit, but let me see if I can give you a summary. I have 2 collections, 3 I recently had removed. Had 3 leins expunged and removed, so they're no longer showing on my report. I have a very good payment history (98%), 2 car loans, one less than $500 to payoff, 2 personal loans, one under $200 to payoff. I don't have a mortgage, as I'm in the proscess of purchasing my first home, now. Part of my problem other than the bad marks, is the lack of a revolving account.

My TU score from TU is 682, 635 on myfico, Equifax is 617 on the site, but only 590 on myfico. My overall score on this site is 634. I raised my score @ 45 pts in a month's time.

WOW! 60 pts? How soon did it show on your report? My aunt has had her card around the same time, and has been pretty good with it. What % of useage is good? Is it @ 25-30% or could it be slightly higher?

Re: Authorized user question

Anonymous — Thu, 26 Mar 2015 15:00:38 GMT

Jon,

by the way, it's a store card, Lowes, not a bank credit card, does it matter much?

Re: Authorized user question

ADARPegasus — Thu, 26 Mar 2015 15:04:58 GMT

to be honest the lower the utilization the better. My GrandParent barely uses there card so the utilization is at 0% most of the time but occasionally goes up because there's is also store cards. One is Menards and one is JCPennys. It also helps with the limits on the cards as well. JCPennys is $8,100 and Menards is $5,200. How old are your collections? Wait do you have any Credit Cards of your own?? If you don't have any credit cards it would explain why your score is low along with the collections.

Re: Authorized user question

Anonymous — Thu, 26 Mar 2015 15:14:07 GMT

I don't have any cards of my own, but was going to apply for one next month. I wanted to make sure my fico 5, which that bank uses, is over 600. I wanted to make sure my score was as high as it could be for right now, before I applied. 2 of the collections are old, but one is within a year. All are medical. So it doesn't matter that it's a store card huh?

Re: Authorized user question

ADARPegasus — Thu, 26 Mar 2015 15:20:36 GMT

No it doesnt. But not having any cards of your own is hurting your score because you score is also based on what types of credit you have and not having any CCs or any Revolving accounts is hurting you.

Re: Authorized user question

Anonymous — Thu, 26 Mar 2015 15:23:03 GMT

I know, and I will take care of that very shortly. I'll let you know what happens to my score. Thanks for your help.

Re: Authorized user question

Anonymous — Thu, 26 Mar 2015 15:29:51 GMT

Jon, I just found the score simulator on this site, and they showed me what would happen if I got a credit card. It said it would go up 55 points. I clicked on store card, and it didn't move at all. Is it because this site is using the new version you spoke of?

Re: Authorized user question

ADARPegasus — Thu, 26 Mar 2015 15:32:12 GMT

Oh you mean your getting a store card? I wouldn't get a store card for your first credit card especially because some store cards are considered charge accounts. I would get a Visa, Mastercard, Discover or American Express. Try Capital One or Barclays or if you have any family in the military try NFCU.

Re: Authorized user question

Anonymous — Thu, 26 Mar 2015 15:36:32 GMT

No, I'm not getting a store card. I was going to sign onto a store card with a relative, then get my own after the increase in score.

Re: Authorized user question

ADARPegasus — Thu, 26 Mar 2015 16:03:14 GMT

Yea u can do that with the AU card then get a VISA or MC or AMEX, Disover when u get your own!

Re: Authorized user question

Anonymous — Thu, 26 Mar 2015 16:08:33 GMT

That's the plan, thanks bro

Re: Authorized user question

ADARPegasus — Thu, 26 Mar 2015 18:32:20 GMT

Keep us updated!

Re: Authorized user question

Anonymous — Thu, 26 Mar 2015 19:49:50 GMT

Will do.

Re: Authorized user question

Anonymous — Thu, 26 Mar 2015 20:09:55 GMT

I see a lot of posters have in their signatures, a bunch of cards and then 2 numbers after them. Looks like the first number may be their balance, and the next the limit. I notice many of them have like $1 or $5. Is it a strategy to boost scores to get a lot of cards and cary a small balance? Please explain what's behind this.

thanks

Re: Authorized user question

ADARPegasus — Thu, 26 Mar 2015 20:25:10 GMT

It all depends on what your trying to do if you keep your utilization low your credit score will be higher.