topic Re: adding an authorized user in Credit Cards

adding an authorized user

MsTucker09 — Fri, 27 Mar 2009 14:25:27 GMT

Hello everyone my husband and I are having a new home built that should be completed by july or aug. our loan consultant recently told us that my middle score right now is 640 and my husbands is 560 (which needs to get up to 620 quick) she suggested that he get a secured visa and we want to know is it possible to bring his score up 60pts with a secured card and my mother said to add him as an authorized user on my long standing acct w/ cap one but my loan officer said that would have no impact on his score. so does anyone have any suggestins because i thought as an authorized user it would be on his credit report also. thanks

Re: adding an authorized user

Anonymous — Fri, 27 Mar 2009 15:32:05 GMT

Did the loan officer specify why they felt the AU card would not benefit his score?

FICO 08 wasn't going to include AU in scoring, but has announced it will. Very few, if any, are even using the new FICO 08 scoring model.

Make sure Cap 1 reports AU.

What is the util on the Cap 1 card?

AFAIK it will be included in his score.

Message Edited by sidewinder on 03-27-2009 10:32 AM

Re: adding an authorized user

MsTucker09 — Fri, 27 Mar 2009 17:23:22 GMT

she said it would not benefit his score because the reporting agencies were no longer using it.

I looked on cap 1 website and they said that they do report to credit agencies for A/U and they asked for his SSN which is another reason we think they look.

my current util is 0% i use it about every 2 months for gas and pay it before staement period is over.

thank you

Re: adding an authorized user

Anonymous — Fri, 27 Mar 2009 22:04:07 GMT

I think that possibly your broker has given the wrong impression, or possibly is mistaken.

AU will improve his FICO score, but will not, as credit reference, improve his history of credit use as "content." He is not financially responsible for an AU account, and therefore creditors will not look at it as a credit reference. However, they will look at his FICO and that will be affected by the AU because it affects utilization, balances, AAoA, oldest account and highest limit portions of the FICO algorithym.

Re: adding an authorized user

MsTucker09 — Sat, 28 Mar 2009 23:40:40 GMT

thanks 1 more thing I tried to add him as au on my 2 store charge cards but they just asked for his name not his SSN or anything. am i to assume that is because they do not report to the credit agencies?

Re: adding an authorized user

Anonymous — Sun, 29 Mar 2009 01:30:32 GMT

I just got added as AU on my Dad's 20 year old B of A card. They did not ask him for my SS# and it showed up on my credit report and I got a 70 point bump up!

We share the same last name and have the same address.....it worked on TU and EQ...who knows with EX

Re: adding an authorized user

haulingthescoreup — Sun, 29 Mar 2009 01:42:13 GMT

MsTucker09 wrote:
thanks 1 more thing I tried to add him as au on my 2 store charge cards but they just asked for his name not his SSN or anything. am i to assume that is because they do not report to the credit agencies?

Gap did not report me as an AU on DD#2's card (thank goodness.) I didn't even know that I was an AU, but apparently she told them that it was OK for them to talk to me, and presto! I became an AU.

I would assume that this is true as well of Old Navy and Banana Republic and whatever that fruit-named thing is, but you never know.

Some cards report AU's, some don't; some ask for SSN's, some don't. No rhyme or reason.

Re: adding an authorized user

MsTucker09 — Sun, 29 Mar 2009 01:42:45 GMT

Ok thanks do you know how long it took for it to be updated on your credit report

Re: adding an authorized user

haulingthescoreup — Sun, 29 Mar 2009 03:33:48 GMT

Generally an AU account updates when the statement posts.

Bank of America updates new AU's immediately, although when they're removed, you have to wait for the next statement date.

In other words, it varies wildly.

Re: adding an authorized user

Thunderseven — Sun, 29 Mar 2009 11:33:55 GMT

How long should a CC account be open before adding an AU? I have a BoA card that I use once or twice a month and pay it off before the statement date to keep the util down to 0%. It's only been open since 10/08 and I was thinking of "maybe" adding my daughter to help her start a credit history. Should I do this, or is it too soon for my card? Also, what king of hit could my scores take by doing so?

Re: adding an authorized user

Anonymous — Sun, 29 Mar 2009 12:59:00 GMT

I don't think you get a ding for adding an AU, It should not show up on your account, just hers.

You could add here as a AU and not give her a card so that there is no chance she abuses the card.

My Dad added me as a AU on two 20 year cards of his and I picked up 70 points but he did not give me any cards.

Re: adding an authorized user

Thunderseven — Sun, 29 Mar 2009 16:31:34 GMT

Thanks for the reply. I'll check with a CSR at BoA and verify what timeframe would be best to add an AU on an account that is under 1-year old. Thanks again!!!

Re: adding an authorized user

haulingthescoreup — Sun, 29 Mar 2009 16:38:34 GMT

Thunderseven wrote:
Thanks for the reply. I'll check with a CSR at BoA and verify what timeframe would be best to add an AU on an account that is under 1-year old. Thanks again!!!

The "time frame" doesn't matter for the card, but if you have an older, squeaky-clean, low util card, it would be more helpful to her. Of course, if she currently has no credit in her name at all, it won't drop her AAoA, which is now 0.

But for those who do already have credit, an AU card as young as this one would drop their average age.