topic Re: Authorized user in Credit Cards

Authorized user

jbrown773 — Tue, 22 Oct 2013 01:18:39 GMT

If you become an AU on a card are you more likely to get approved by that bank? For example if GE is showing no love and you become an AU on a freinds account that has a good history with GE are you more likely to get approved then or does that not play a factor?

Re: Authorized user

FinStar — Tue, 22 Oct 2013 01:23:20 GMT

@jbrown773 wrote:
If you become an AU on a card are you more likely to get approved by that bank? For example if GE is showing no love and you become an AU on a freinds account that has a good history with GE are you more likely to get approved then or does that not play a factor?

Unfortunately, that criteria isn't taken so much into consideration for getting approved by most lenders. If it were a joint account, then yes for some. AU helps with history and some scoring factors; however, t's your individual profile that lenders look at.

Re: Authorized user

09Lexie — Tue, 22 Oct 2013 01:28:35 GMT

+1

It does not play a factor at all. The lenders are looking at the applicant/primary cardholders credit profile. An AU can help build history, it does not erase any baddies that will otherwise cause a lender to decline an app.

Also, some lenders discount AUs accounts in their entirety.

Re: Authorized user

jbrown773 — Tue, 22 Oct 2013 16:27:23 GMT

Well what if the reason the lender denied you is lack of accounts? would having a few AU's accounts then pay a factor or do lenders ignore those files when processing your worthiness?

Re: Authorized user

parakleet — Tue, 22 Oct 2013 16:53:52 GMT

Being added as an AU can help (provided that it's a clean account, etc) but in no way does it completely make up for baddies or other deficiencies on a person's CR. And like Lexie said, some creditors don't consider AU accounts at all.

Re: Authorized user

Anonymous — Tue, 22 Oct 2013 19:18:30 GMT

There are two major companies (More Discover than AMEX) that I want to get in the door with. I heard with AMEX it doesn't really help =/ But how about Discover?

Re: Authorized user

FinStar — Tue, 22 Oct 2013 19:28:33 GMT

@Anonymous wrote:
There are two major companies (More Discover than AMEX) that I want to get in the door with. I heard with AMEX it doesn't really help =/ But how about Discover?

If you are referring to AU history, the same applies with Discover like AMEX. Very few lenders, if any, rely on such history to provide an "in" for getting approved. However, if you have any joint account history with any current lenders and you are looking to obtaing your own/individual account, then such history counts in the review process.

Re: Authorized user

Anonymous — Tue, 22 Oct 2013 19:31:54 GMT

Then I need to talk to my dad about AUing me on his discover, he can keep the card. Even shred it if he likes. lol. I just want them to like me

Re: Authorized user

too-much-time — Tue, 22 Oct 2013 19:46:46 GMT

@09Lexie wrote:
An AU can help build history

@parakleet wrote:
Being added as an AU can help (provided that it's a clean account, etc)

I'm actually beginning to wonder exactly how. Please indulge me!

Re: Authorized user

Anonymous — Tue, 22 Oct 2013 19:48:31 GMT

Ooohhhhh just had a thought. So the shopping cart trick is an automated SP right? So theoretically, where most companies wouldn't count AU accounts towards apps, wouldn't a SP shopping cart trick count it towards your approval?

Re: Authorized user

FinStar — Tue, 22 Oct 2013 19:57:10 GMT

@Anonymous wrote:
Ooohhhhh just had a thought. So the shopping cart trick is an automated SP right? So theoretically, where most companies wouldn't count AU accounts towards apps, wouldn't a SP shopping cart trick count it towards your approval?

Bingo! If you are referring to Comenity retail card programs (VS, Express, J.Crew, Ann Taylor, etc); yes any pre-approval offer is SP, depending on elegibility since not everyone qualifies. If you apply directly, then no.

Most store card programs (or private label lenders) usually do not have their algorithms pegged in the same method as most major lenders that exclude AU history. Potentially, you can try that route and see if it yields a positive oucome. Just be sure to think it through whether the card would add any value or benefit (i.e. you will use frequently) other than just sitting in your SD or just to have it, otherwise it defeats the purpose in building your own profile.

Re: Authorized user

parakleet — Tue, 22 Oct 2013 20:10:32 GMT

@too-much-time wrote:
@09Lexie wrote:
An AU can help build history

@parakleet wrote:
Being added as an AU can help (provided that it's a clean account, etc)

I'm actually beginning to wonder exactly how. Please indulge me!

I don't know what else there is to say - other than that yes, it does help build history and can help with UTL. It won't suffice to completely replace any serious delinquencies or other problems that may be present on a report. It really depends on a person's individual situation - it can help.

Re: Authorized user

FinStar — Tue, 22 Oct 2013 20:31:48 GMT

@parakleet wrote:
@too-much-time wrote:
@09Lexie wrote:
An AU can help build history

@parakleet wrote:
Being added as an AU can help (provided that it's a clean account, etc)

I'm actually beginning to wonder exactly how. Please indulge me!

I don't know what else there is to say - other than that yes, it does help build history and can help with UTL. It won't suffice to completely replace any serious delinquencies or other problems that may be present on a report. It really depends on a person's individual situation - it can help.

I would add to Parakleet's comment that in the event any individual is in the build/rebuild phase, having the AU history component can help by way of the scoring criteria, thereby providing an opportunity for approval with a lender who has more flexibility in that criteria.

Additionally, if the individual has somewhat of a "stagnant" profile (score/capacity/utilization) then being added as an AU would likely improve that profile over time since the donor would likely reflect a positive history for those specific TLs. Some CUs can consider AU history in their review process as long as there is an adequate mix of other non-AU TLs on that individual's profile whereas most major lenders would exclude it.

Re: Authorized user

Anonymous — Tue, 22 Oct 2013 21:17:24 GMT

I made my dad add me as an AU to 3 of his cards, (he has $29,000K of credit unused) to help my utilization. It apparently doesn't help me at all, BUT, Credit Karma reports my UTIL at 2% so i'm happy! =)

Edited to Add: I heard somewhere in these forums that it can help on a cpu based approval, but not manual review (because they can see what's AU and what is not)?

Re: Authorized user

jbrown773 — Wed, 23 Oct 2013 18:55:57 GMT

So in the sense of the shopping cart trick being added as an AU would increase the chances or pre approval? I was wondering that too seeing Commenity bank tends to approve people who already have a good standing with other cards that they are banking. I mainly asked this becuse I have a few of Commenity bank cards but cant get approved for GE and my girlfriend is the complete opposite she has many GE cards but cant get approved for Commenity. If She was an AU on one of my commenity cards and tried the shopping cart trick would that work? seeing the shopping cart tricks work for more places now after establishing a good standing with commenity. Also vise versa would I be able to more likely get a Walmart card if I'm added as an AU to her GE cards. even her walmart one she already has, if im trying to do the shopping cart trick.

Also Stiga9

being added as an AU should also increase your AAoA which should increase your scores.

Re: Authorized user

09Lexie — Wed, 23 Oct 2013 19:08:10 GMT

The shopping cart trick does not work for everyone. It's hard to pinpoint a definitive method besides : clearing your cookies, being opt in, no FAs, info provided must match CRs exactly, etc. I tried the shopping cart trick once, it worked and I never had nor was I an AU on other Comenity accounts.

Re: Authorized user

tonyjones — Wed, 23 Oct 2013 22:19:07 GMT

@09Lexie wrote:
+1

It does not play a factor at all. The lenders are looking at the applicant/primary cardholders credit profile. An AU can help build history, it does not erase any baddies that will otherwise cause a lender to decline an app.

Also, some lenders discount AUs accounts in their entirety.

Chase, Citibank and AMEX ignores AU when you apply :/ No point in doing AU's anymore.

Re: Authorized user

cottoncrown — Wed, 23 Oct 2013 22:39:25 GMT

I would have to disagree. My wife had zero credit until I added her as AU to discover and amex. She just got a cap one three months ago, her only primary card with a 500cl and was just approved for amex BCE pre approval from creditcards.com link. I am sure the AU must play in to the approval.

Re: Authorized user

jbrown773 — Thu, 24 Oct 2013 03:48:47 GMT

I've read both sides but havent tested it to know it its actually the reason why or other factors played into that. I know that if you have Google Chrome for a browser you can go to incognito mode and try the shopping cart trick and everything will be clear so if your opted in it should work.

Re: Authorized user

too-much-time — Fri, 25 Oct 2013 05:17:01 GMT

@tonyjones wrote:

Chase, Citibank and AMEX ignores AU when you apply :/ No point in doing AU's anymore.

Interesting!

@cottoncrown wrote:

I would have to disagree. My wife had zero credit until I added her as AU to discover and amex. She just got a cap one three months ago, her only primary card with a 500cl and was just approved for amex BCE pre approval from creditcards.com link. I am sure the AU must play in to the approval.

Income probably played a role too.