topic Re: AMEX BCE AU Question in Credit Cards

AMEX BCE AU Question

chucky1234 — Sun, 15 Sep 2013 03:32:19 GMT

If my friend adds me to her AMEX BCE card as an authorized user will it help my fico score? I currently have fico scores in the 700s but I dont have any CLs that are greater than 1K. Her AMEX BCE has a CL of $10k.

Re: AMEX BCE AU Question

shane82388 — Sun, 15 Sep 2013 03:39:08 GMT

@chucky1234 wrote:
If my friend adds me to her AMEX BCE card as an authorized user will it help my fico score? I currently have fico scores in the 700s but I dont have any CLs that are greater than 1K. Her AMEX BCE has a CL of $10k.

i believe it will, at least on the surface...if a CSR had to dig deeper to approve you then they might factor that one out since its not truely your account...but i know my score just jumped a bit when my girlfriends Wells Fargo account reported on my credit report today as an authorized user.

Re: AMEX BCE AU Question

chucky1234 — Sun, 15 Sep 2013 03:44:20 GMT

@shane82388 wrote:
@chucky1234 wrote:
If my friend adds me to her AMEX BCE card as an authorized user will it help my fico score? I currently have fico scores in the 700s but I dont have any CLs that are greater than 1K. Her AMEX BCE has a CL of $10k.
i believe it will, at least on the surface...if a CSR had to dig deeper to approve you then they might factor that one out since its not truely your account...but i know my score just jumped a bit when my girlfriends Wells Fargo account reported on my credit report today as an authorized user.

How many points did it jump just curious.

Re: AMEX BCE AU Question

shane82388 — Sun, 15 Sep 2013 03:50:52 GMT

im not quite positive because other things happened today...a $1000 CLI reported...and something else i cant rmemeber right now...so its hard to say how much of an effect it had but i know a week or two ago i had way higher balances plus the things i just listend hadnt happened yet and i was at 652..now im at 682...so yeah...kinda hard to say.

Re: AMEX BCE AU Question

Anonymous — Sun, 15 Sep 2013 04:11:37 GMT

OP,

It could hurt your score as well. There is no rule of thumb. Here is what is happening:

If you have high utilization, the new card could help if it has low utilization as its balance and limit will be added to yours. However, if card has higher utilization than you have, it will actually hurt your score even though limit is high. Remember this is reported utilization.

2nd, the AMEX will likely drop your score from creating a new account and dropping your AAoA but depends on how much it dropped it.

So basically does the utilization effect (if positive) outweigh the AAoA effect which will only be negative or neutral. This is what will determine if your FICO score will go up or down.

On the other hand, the AMEX will help you in some non FICO Score ways. One, assuming you never had AMEX, you can set your AMEX member date this year which will help you in future with AAoA via backdating. 2nd, high limit card may make new apps CL higher or CLI requests more likely when they see the 10k line.

Btw, on VISA/MC, the effect of AU is a bit different as you get basically a duplicate account info as original cardholder with the addition of AU notation. Therefore, AAoA can actually improve, but utilization efffect is the same.

Re: AMEX BCE AU Question

shane82388 — Sun, 15 Sep 2013 04:19:37 GMT

@Anonymous wrote:
OP,

It could hurt your score as well. There is no rule of thumb. Here is what is happening:

If you have high utilization, the new card could help if it has low utilization as its balance and limit will be added to yours. However, if card has higher utilization than you have, it will actually hurt your score even though limit is high. Remember this is reported utilization.

2nd, the AMEX will likely drop your score from creating a new account and dropping your AAoA but depends on how much it dropped it.

So basically does the utilization effect (if positive) outweigh the AAoA effect which will only be negative or neutral. This is what will determine if your FICO score will go up or down.

On the other hand, the AMEX will help you in some non FICO Score ways. One, assuming you never had AMEX, you can set your AMEX member date this year which will help you in future with AAoA via backdating. 2nd, high limit card may make new apps CL higher or CLI requests more likely when they see the 10k line.

Btw, on VISA/MC, the effect of AU is a bit different as you get basically a duplicate account info as original cardholder with the addition of AU notation. Therefore, AAoA can actually improve, but utilization efffect is the same.

Yeah, this is assuming someone with a 10K limit on an AMEX has had the card for a while and didnt just open it yesterday...

Re: AMEX BCE AU Question

Anonymous — Sun, 15 Sep 2013 04:30:45 GMT

@shane82388 wrote:
@Anonymous wrote:
OP,

It could hurt your score as well. There is no rule of thumb. Here is what is happening:

If you have high utilization, the new card could help if it has low utilization as its balance and limit will be added to yours. However, if card has higher utilization than you have, it will actually hurt your score even though limit is high. Remember this is reported utilization.

2nd, the AMEX will likely drop your score from creating a new account and dropping your AAoA but depends on how much it dropped it.

So basically does the utilization effect (if positive) outweigh the AAoA effect which will only be negative or neutral. This is what will determine if your FICO score will go up or down.

On the other hand, the AMEX will help you in some non FICO Score ways. One, assuming you never had AMEX, you can set your AMEX member date this year which will help you in future with AAoA via backdating. 2nd, high limit card may make new apps CL higher or CLI requests more likely when they see the 10k line.

Btw, on VISA/MC, the effect of AU is a bit different as you get basically a duplicate account info as original cardholder with the addition of AU notation. Therefore, AAoA can actually improve, but utilization efffect is the same.
Yeah, this is assuming someone with a 10K limit on an AMEX has had the card for a while and didnt just open it yesterday...

No. AMEX reports AU accounts as being open the day they were actually opened and not when the original card holder opened it. This is unlike Visa/MC where you get a duplicate of the tradeline of the original card holder with the AU notation. So your statement is correct for VISA/MC but not for AMEX.

Re: AMEX BCE AU Question

shane82388 — Sun, 15 Sep 2013 18:44:28 GMT

@Anonymous wrote:
@shane82388 wrote:
@Anonymous wrote:
OP,

It could hurt your score as well. There is no rule of thumb. Here is what is happening:

If you have high utilization, the new card could help if it has low utilization as its balance and limit will be added to yours. However, if card has higher utilization than you have, it will actually hurt your score even though limit is high. Remember this is reported utilization.

2nd, the AMEX will likely drop your score from creating a new account and dropping your AAoA but depends on how much it dropped it.

So basically does the utilization effect (if positive) outweigh the AAoA effect which will only be negative or neutral. This is what will determine if your FICO score will go up or down.

On the other hand, the AMEX will help you in some non FICO Score ways. One, assuming you never had AMEX, you can set your AMEX member date this year which will help you in future with AAoA via backdating. 2nd, high limit card may make new apps CL higher or CLI requests more likely when they see the 10k line.

Btw, on VISA/MC, the effect of AU is a bit different as you get basically a duplicate account info as original cardholder with the addition of AU notation. Therefore, AAoA can actually improve, but utilization efffect is the same.
Yeah, this is assuming someone with a 10K limit on an AMEX has had the card for a while and didnt just open it yesterday...
No. AMEX reports AU accounts as being open the day they were actually opened and not when the original card holder opened it. This is unlike Visa/MC where you get a duplicate of the tradeline of the original card holder with the AU notation. So your statement is correct for VISA/MC but not for AMEX.

Oh wow, thats lame! Plus they charge you like $30 a card fee for each person you add on...at least for my Green card it says that...

Re: AMEX BCE AU Question

Creditaddict — Sun, 15 Sep 2013 18:48:12 GMT

If you are in the 700's already and you have multiple credit accounts already I would actually say if you have no purpose for being on this card besides hoping your score goes up because of higher limit I would NOT be added to it... your score will not go up "most" likely.

Fico says 3 reporting accounts for best scoring...

Who do you currently have for credit cards?

what are limits and balances and how long have you had them?

maybe we can just help you here with advice to get CLI on current or direct for a new card that might give you $10k all on your own!

Re: AMEX BCE AU Question

Kenny — Sun, 15 Sep 2013 22:16:15 GMT

@shane82388 wrote:
@Anonymous wrote:
@shane82388 wrote:
@Anonymous wrote:
OP,

It could hurt your score as well. There is no rule of thumb. Here is what is happening:

If you have high utilization, the new card could help if it has low utilization as its balance and limit will be added to yours. However, if card has higher utilization than you have, it will actually hurt your score even though limit is high. Remember this is reported utilization.

2nd, the AMEX will likely drop your score from creating a new account and dropping your AAoA but depends on how much it dropped it.

So basically does the utilization effect (if positive) outweigh the AAoA effect which will only be negative or neutral. This is what will determine if your FICO score will go up or down.

On the other hand, the AMEX will help you in some non FICO Score ways. One, assuming you never had AMEX, you can set your AMEX member date this year which will help you in future with AAoA via backdating. 2nd, high limit card may make new apps CL higher or CLI requests more likely when they see the 10k line.

Btw, on VISA/MC, the effect of AU is a bit different as you get basically a duplicate account info as original cardholder with the addition of AU notation. Therefore, AAoA can actually improve, but utilization efffect is the same.
Yeah, this is assuming someone with a 10K limit on an AMEX has had the card for a while and didnt just open it yesterday...
No. AMEX reports AU accounts as being open the day they were actually opened and not when the original card holder opened it. This is unlike Visa/MC where you get a duplicate of the tradeline of the original card holder with the AU notation. So your statement is correct for VISA/MC but not for AMEX.
Oh wow, thats lame! Plus they charge you like $30 a card fee for each person you add on...at least for my Green card it says that...

Not the case for my revolver -- it was free to add an AU to my BCE.

Re: AMEX BCE AU Question

09Lexie — Sun, 15 Sep 2013 22:18:04 GMT

Not all ACMs have a fee, PRG is one that's also free

Re: AMEX BCE AU Question

Anonymous — Sun, 15 Sep 2013 22:22:55 GMT

As written above; it should help with utilization depending upon your friend's usage and payment style.