topic Re: AU accounts in Credit Cards

AU accounts

Anonymous — Sun, 26 Jul 2009 23:10:16 GMT

I've asked the same kind of question before. What do you think may happen if you add 3-4 AU accounts with perfect history to the new file with NO history at all. As far as I understand the scores should be really high (long perfect history, no baddies). Did anybody had experience of applying for any major cards with this type of credit? Any success? I assume most of them should be approved instanltly, the ones that will get reviewed will most likely be declined... Any experience?

Re: AU accounts

Anonymous — Sun, 26 Jul 2009 23:12:29 GMT

I mean recent experience after the lending standarts have tightened. Thank you

Re: AU accounts

Anonymous — Mon, 27 Jul 2009 18:18:20 GMT

bump

Re: AU accounts

westcon5 — Tue, 28 Jul 2009 00:31:21 GMT

I have been added as an AU on two cards with a total of around $21,000 total credit available. Both cards carry zero balances. One has been open for 12 years, one of 7 years. My personal CR's are thin. The addition of these cards certainly helped the scores. Mine are around 750 (+/-) with TU and EQ.

The AU's have not helped in any way with being approved. I have applied with Chase and Jared and been denied on both of them. Both the letters stated not enough TL's reporting open. I called the Chase backdoor number and they told me they required 3 TL's open for 2 or more years with perfect payment history.

I am sure other's on here have more experience and better advise, but I have found the AU's don't really help at all unless you are just looking for a score boost. If you have good TL's established, that might work better for you. However, the places I have applied to do not count AU's in their decisions.

Re: AU accounts

Anonymous — Tue, 28 Jul 2009 00:44:46 GMT

My spouse had no credit before I added her as an AU to four of my 20 y/o Amex accounts that I never used. She has not been denied anything since then and has all the prime cards with 5 digit limits. She is also a student with no income. IME the score has meant everything and none of the issuers have looked beyond it with the exeption of one CU. They asked for a tax return before approving a CLI on two 7.5K cards she has with them. She just told them no and to forget about the CLI. IMO the score is all that matters for most issuers as long as there is age that goes along with it.

Re: AU accounts

Anonymous — Tue, 28 Jul 2009 01:50:50 GMT

I agree that multiple 20 year, perfect accounts, long AAoA is going to be adequate most of the time.

PenFed usually does not instant approved, but sometimes they do. NFCU reviews most apps, but they instant approve some. Alliant instant approves (without even asking about income or HHI). AMEX has instant approval processes....so do most issuers.

If you ask for a specifically VERY BIG CL, this may require a review, but once you get to a certain "aged" FICO, then the lenders line up.

Re: AU accounts

Anonymous — Tue, 28 Jul 2009 04:39:08 GMT

Thank you, guys! Hobojon, can you name the particular banks that approved your wife with your AMEX AU? When did that happen? Thanks again!

Re: AU accounts

Anonymous — Tue, 28 Jul 2009 06:09:41 GMT

@Anonymous wrote:
Thank you, guys! Hobojon, can you name the particular banks that approved your wife with your AMEX AU? When did that happen? Thanks again!

BofA/Merrill, Citi, Chase, Amex, USAA, National City cards were all apped and approved 12-18 months ago with no credit prior to AU cards.

Re: AU accounts

Anonymous — Tue, 28 Jul 2009 19:45:28 GMT

Wow... do you know what her scores were at that time? Anybody else got approved with solely AU accounts on their report recently?

Re: AU accounts

Anonymous — Tue, 28 Jul 2009 19:52:10 GMT

My daughter was approved for CapOne $1k with only AU's, but then app'ed NFCU and got $8k.

Re: AU accounts

smallfry — Tue, 28 Jul 2009 22:18:46 GMT

My 18 yo daughter got an AMEX Clear 2K limit. Only TL's reporting were a few small student loans which were deferred plus AU on a few of my cards. I can't get an AMEX she got one using my tradelines. LOL.

Re: AU accounts

happy0510 — Tue, 28 Jul 2009 22:24:16 GMT

Does anyone know the effect of AU's on mortgage apps?

Re: AU accounts

Anonymous — Tue, 28 Jul 2009 22:55:49 GMT

I don't think it will help with mortage though... In this case it can help with the scores (lower utilization, longer credit history etc). But for clean and thin files it should be a different story as all the mortage app's will be carefully review by underwriters. BTW, do you think instant approval system with major banks' CC can distinguish the difference between primary and AU accounts as well? If anybody has more experience, please share I'm trying to get good cards for my GF adding her as an AU on my cards. She doesn't have any history axcept for my 3 AU accounts Thanks for your help, guys!

Re: AU accounts

smallfry — Wed, 29 Jul 2009 01:04:44 GMT

@Anonymous wrote:

I don't think it will help with mortage though... In this case it can help with the scores (lower utilization, longer credit history etc). But for clean and thin files it should be a different story as all the mortage app's will be carefully review by underwriters. BTW, do you think instant approval system with major banks' CC can distinguish the difference between primary and AU accounts as well? If anybody has more experience, please share I'm trying to get good cards for my GF adding her as an AU on my cards. She doesn't have any history axcept for my 3 AU accounts Thanks for your help, guys!

Your reports distinguish between individual and authorized user accounts so the issuer can most definitely see what is what.

Re: AU accounts

Anonymous — Wed, 29 Jul 2009 02:37:29 GMT

AU accounts help and then don't help for mortgages.

They help because they help FICO. So if they push your FICO to the score you need to get a rate, they helped.

They don't help as a credit reference because they are not your account, so they are not considered by the lender.

However, this can help also because the balances and payments then are not your responsibility.

The thing about mortgages though, is that they go with your score, then look at any disqualifying derogs, then income, then debt and DTI. If these add up, you can get a loan. You don't really need a lot of CC TL's to get a mortgage.

So, IMO AU's help because they get you to the FICO you need to get a better rate. And the lender doesn't calculate the FICO, so they cannot remove them from the score.

Re: AU accounts

Anonymous — Wed, 29 Jul 2009 04:01:52 GMT

Smallfly, I know the reports distinguish between responsibility of the accounts and the underwriters will too. The question was if the Instant Approval System can do that (computer). and if anybody ever had experience with being instantly approved with AU accounts only

Re: AU accounts

smallfry — Wed, 29 Jul 2009 09:56:14 GMT

@Anonymous wrote:
Smallfly, I know the reports distinguish between responsibility of the accounts and the underwriters will too. The question was if the Instant Approval System can do that (computer). and if anybody ever had experience with being instantly approved with AU accounts only

As I said my daughter was instantly approved by AMEX with only AU lines showing on her reports.