topic Re: Authorized User Affect on Getting Approved for New Credit in Credit Cards

Authorized User Affect on Getting Approved for New Credit

Anonymous — Mon, 23 Apr 2012 23:06:42 GMT

Hello all, I am a student and began my credit history last June with a Citi Thank You card. I was then set up as an authorized user on two of my parents' cards with long histories and perfect payment. I have perfect payment on my card (never carry a balance and keep my utilization between 5-10% monthly). My FICO middle score is at least a 754, possibly higher but who knows until there is a way to get an Experian FICO report! My question is, what affect does this have on me getting approved for two new cards? I would like to buy a home next year and the lender I have been talking to said I would need 3 tradelines in my name seasoned over 12 months (for an investment property).

So I am looking to get 2 new cards, and am wondering if I can go for cards that require good to excellent credit to be approved for. I am unaware of whether or not the lenders will look at my authorized user status on the two long history cards and basically disregard them because they are not in my name.

Namely I am looking at: http://www.creditcards.org/southwest-airlines-rapid-rewards-credit-card-chase and http://www.creditcards.org/chase-freedom%C2%AE-visa-2 .

Should I be worried that they are both from Chase? I could perhaps switch the Freedom card to something else if it needed to be at a different bank to maximize my chance of acceptance. Mainly my goal is to just get two cards that have no annual fees and will be something I will want to hold on to for a while, while keeping credit pulls to a minimum. If it shouldn't matter that both cards are from Chase is there any chance I could get them to use the same hard pull for both apps? I plan to apply at the same time, unless that is an issue.

Re: Authorized User Affect on Getting Approved for New Credit

Anonymous — Wed, 25 Apr 2012 01:38:00 GMT

Anyone have any input on this? I was planning to apply tomorrow (or maybe even tonight).

Re: Authorized User Affect on Getting Approved for New Credit

Anonymous — Wed, 25 Apr 2012 01:44:19 GMT

I have the Chase Freedom and like it fine. Their web site is really all you could hope for. Make sure to find the best offer you can (I seem to think $200 in bonus rewards is currently the offer).

As for two Chase cards, I assume they'll "see" eachother, which might complicate the second of the two. What about getting a car note or other installment (e.g. low-dollar personal loan) to diversify?

Re: Authorized User Affect on Getting Approved for New Credit

Anonymous — Wed, 25 Apr 2012 07:40:25 GMT

I have considered getting an alternative form of tradeline, but I purchased my car with cash and have no rent/utility expenses. If I got a personal loan from the bank it would probably need to be at least a 24 month loan as if it terminated somewhere in the middle of the transaction I could get stuck in a VERY bad place (I am buying via a hard money loan with construction draws and then refinancing into a conventional loan directly after, so any change in credit between that period could be terrible)! The other thing that makes me a bit leary to pick an alternative like that is that those loans will eventually end whereas a CC I can season and let it help my average age. I think I am going to try and apply for both cards, and if one (or both *shudder*) fail then I can replace them with some other form of tradeline. At least that way the tradeline that would eventually expire would be replaced by a mortgage.

Re: Authorized User Affect on Getting Approved for New Credit

improvingmycredit — Wed, 25 Apr 2012 07:47:28 GMT

With the scores you listed, you shouldn't have any problem getting a card you want. The issue is, if the card goes to manual review because you've applied for 2 from the same lender at the same time, then you might be denied due to the majority of your credit history is contributed by a family member. I'd personally pick the Chase card you want and app for a different card from a different lender.

Have you thought of Amex Zync or BCE or Delta Gold? (BCE is a little difficult to get) Nice thing is.... you get backdating if you decide to apply for another Amex product in the future.

Also, Citi has some pretty good cards out there with low APRs.

Just my 2 cents. I'd love to hear how it works out for you.

Re: Authorized User Affect on Getting Approved for New Credit

Anonymous — Wed, 25 Apr 2012 08:03:56 GMT

That is something I have been heavily considering. I would really like the southwest card as it gives about $500 in bonuses and I always fly Southwest when flying within the country. The Chase Freedom actually still has a $300 cashback deal but you have to call 800-795-6307 to get it (details here: http://slickdeals.net/f/4162156-CHASE-FREEDOM-300-cashback-after-500-spending-in-3-months?). However I don't mind giving that up to get a card with a better chance of being accepted. I'll look into the others, thanks for your help so far! I will definitely post as this develops

My current card is a Citi Forward with a $2,000 limit.

$35,000 income with no other debt. DTI and utilization are kept exceptionally low.

Re: Authorized User Affect on Getting Approved for New Credit

Anonymous — Wed, 25 Apr 2012 13:56:32 GMT

Is there a specific reason BCE is hard to get? I am definitely considering that instead of the Freedom.

It didn't look too tough when I looked it up here: Mod Cut

Hi there. Links to that credit repair site are not allowed to be posted - MarineVietVet, myFICO moderator

Re: Authorized User Affect on Getting Approved for New Credit

improvingmycredit — Wed, 25 Apr 2012 09:33:53 GMT

Amex is a weird bird sometimes. They have an internal scoring system that factors in many different aspects of your profile. The BCE is one of their best rewards deals along with their BCP. I've seen people with lower scores then yours get the card and people with much higher scores declined. There's no telling really what may get you the card or stop you from getting it till you apply. I personally carry the BCP and love it. It's often referenced as one of the hardest Amex products to get behind the BCP here on the myFICO forums because it is one of the best rewards cards that Amex offers.

Another great thing about Amex: once a member, if you try for another of their products, it's a SP if denied and only a HP if approved. That along with the backdating makes Amex a great credit partner

Good luck if you go for it.

Re: Authorized User Affect on Getting Approved for New Credit

Anonymous — Wed, 25 Apr 2012 09:52:41 GMT

Crud. I just looked at my CreditKarma report and the balance from one of the cards I am an AU on is $6,000, which while it was Paid in Full, would be significantly higher than my income (around $2,900 a month part-time). Any idea if that will sink me? I may be able to wait a bit and get my parents to pay the card off pre-balance for next month if needed. My mom said she did that last month, but I think she paid on the actual day of the statement, meaning the payment didn't beat the time that the statement was cut.

Now wondering if I should get a different Amex or card from differnt bank altogether. The Amex benefits look really nice. I will have to find out when the statement date is on that card with the higher balance. Then again, perhaps I should just go for it and see what ahppens. One extra HI isn't too terrible.

Re: Authorized User Affect on Getting Approved for New Credit

webhopper — Wed, 25 Apr 2012 12:26:34 GMT

@improvingmycredit wrote:
With the scores you listed, you shouldn't have any problem getting a card you want. The issue is, if the card goes to manual review because you've applied for 2 from the same lender at the same time, then you might be denied due to the majority of your credit history is contributed by a family member. I'd personally pick the Chase card you want and app for a different card from a different lender.
Have you thought of Amex Zync or BCE or Delta Gold? (BCE is a little difficult to get) Nice thing is.... you get backdating if you decide to apply for another Amex product in the future.
Also, Citi has some pretty good cards out there with low APRs.
Just my 2 cents. I'd love to hear how it works out for you.

I agree with this poster... Amex is a nice product, you should definately look at getting into the Amex family, as it is considered prime with good rewards, and you'll get the benefit of backdating in the future.

Re: Authorized User Affect on Getting Approved for New Credit

clocktick — Wed, 25 Apr 2012 12:38:13 GMT

If you want to apply for 2 Chase cards, then that's would I would do. You can always try to recon if you're denied. Unless you want to apply for other cards, I would just apply for what I want.

Re: Authorized User Affect on Getting Approved for New Credit

Anonymous — Wed, 25 Apr 2012 12:48:28 GMT

Well the Freedom I was looking into mainly because of the $300 promo running, but the Amex benefits and backdating look very very appealing now that I am looking at it.

Re: Authorized User Affect on Getting Approved for New Credit

Anonymous — Wed, 25 Apr 2012 13:09:46 GMT

Just pulled the trigger. Instant approval on the Southwest card from Chase.

From Amex BCE:

"Thank you for applying for the Blue Cash EverydaySM from American Express. Your application has been received and will be processed as soon as possible and we will notify you of the decision by mail within 14 days.

Thank you for applying."

Re: Authorized User Affect on Getting Approved for New Credit

Anonymous — Wed, 25 Apr 2012 13:12:10 GMT

Just did an online status check on the BCE. APPROVED!

2 apps and 2 cards landed in 3 minutes.

I'm pumped!

Re: Authorized User Affect on Getting Approved for New Credit

Anonymous — Wed, 25 Apr 2012 13:16:41 GMT

Wow BCE with less than a year of history. Congrats!

Re: Authorized User Affect on Getting Approved for New Credit

aussiesareforever — Wed, 25 Apr 2012 13:23:05 GMT

Congrats OP!!!!

Re: Authorized User Affect on Getting Approved for New Credit

Anonymous — Wed, 25 Apr 2012 14:00:41 GMT

@Anonymous wrote:
Wow BCE with less than a year of history. Congrats!

Yeah I only have 10 months on the account that I'm a primary on, but I have two nice long authorized user accounts from my parents.

My AU accounts are a Chase Southwest Rapid Rewards from February 2001 (basically the same card as the one I applied for) with a CL of $35,000 and a Barclaycard from Sept. 2005 with a CL of $18,300.

My Citi Forward from last June has a CL of $2,000 so I am curious to see what sort of limit I get on these.

Edit: I got a $7,500 CL on the Chase card.

Re: Authorized User Affect on Getting Approved for New Credit

improvingmycredit — Wed, 25 Apr 2012 14:07:37 GMT

Congrats!!!! Great choices on cards too! I think things might have gone differently for the 2nd card if you had applied for 2 Chase products. The second app would have been kicked out and you would have to request a manual review for approval. They would then have scrutinized the AU accounts which could have lead to a denial. I am very happy for you! SUCCESS!

Re: Authorized User Affect on Getting Approved for New Credit

Anonymous — Wed, 25 Apr 2012 14:35:24 GMT

@improvingmycredit wrote:
Congrats!!!! Great choices on cards too! I think things might have gone differently for the 2nd card if you had applied for 2 Chase products. The second app would have been kicked out and you would have to request a manual review for approval. They would then have scrutinized the AU accounts which could have lead to a denial. I am very happy for you! SUCCESS!

Yeah I'm afraid that might have happened as well. Thank you so much for all your help. I probably would have attempted the double Chase app had you not mentioned trying another bank. You may have saved my butt!

Re: Authorized User Affect on Getting Approved for New Credit

improvingmycredit — Wed, 25 Apr 2012 16:35:17 GMT

You are so welcome! I'm glad everything worked out for you. Great starting CL with Chase!
Best of Luck on your credit journey!