topic Re: Does AU on CC score different than own account? in Understanding FICO® Scoring

Does AU on CC score different than own account?

Anonymous — Tue, 27 Oct 2015 18:22:42 GMT

I just added my husband as AU on two of my cards - both are very new -but it's what we have......

Someone indicated that AU doesn't score as well as if he has his own cards......Is that true? This is the only way I could get him a total of 3 cards without going the secured route (Id rather use the deposit to pay off other stuff at this time...)

Just wonered - his scores are EX 681- TU 706 - EQ 700

He has a THIN file - but we want to work toward mortgage in the spring.....I was hoping this would help him....but do you think it did? I won't know anything for sure until after those cards report...- but figure there is a lot of experience out here to give me an idea. and yes - I know YMMV

Re: Does AU on CC score different than own account?

CH-7-Mission-Accomplished — Tue, 27 Oct 2015 19:13:59 GMT

@Anonymous wrote:
I just added my husband as AU on two of my cards - both are very new -but it's what we have......

Someone indicated that AU doesn't score as well as if he has his own cards......Is that true? This is the only way I could get him a total of 3 cards without going the secured route (Id rather use the deposit to pay off other stuff at this time...)

Just wonered - his scores are EX 681- TU 706 - EQ 700
He has a THIN file - but we want to work toward mortgage in the spring.....I was hoping this would help him....but do you think it did? I won't know anything for sure until after those cards report...- but figure there is a lot of experience out here to give me an idea. and yes - I know YMMV

For FICO scoring, they will score the same.

On manual review, or within certain credit card lenders' internal systems, they would be discounted, but that is apurely subjective call and not standard across lenders.

AU's are a great way to get FICO scores up. Then as soon as you can, get your own cards and in time, consider closing out the AU accounts.

Re: Does AU on CC score different than own account?

Anonymous — Tue, 27 Oct 2015 20:17:32 GMT

Thanks......Hopefully we can get things going - and they won't look at them too harshly when we go for a mortgage....I hate for him to apply for too much - we are hoping to apply in about March.....

Re: Does AU on CC score different than own account?

vanillabean — Tue, 27 Oct 2015 20:33:58 GMT

In that case, don't apply for any new cards... Just how thin is his file?

Re: Does AU on CC score different than own account?

Anonymous — Tue, 27 Oct 2015 21:02:13 GMT

Here's his file in a nutshell

OPEN ACCTS:

Chase Auto Loan taken out in 5/2012 - 2 30 day lates, last time in May 2014 - still paying......

Student Loan - 4/2013 $2600 - on IBR pays as agreed - $0 monthly payment.

Child Support Arrearage

CLOSED ACCTS:

Citi Residential Mortgage Opened 8/2005 - status - pays as agreed - (account was closed in 2007)

Not yet reporting - Capital One CC - CL $300 - Opened Oct. 2015

3 Inquiries

Cap One 10/2015

Chase 1/2015

Discover 8/2015

Re: Does AU on CC score different than own account?

CreditDunce — Fri, 30 Oct 2015 01:30:27 GMT

FICO uses some algorithms to weed out AU accounts for non-related people. For your spouse, FICO most likely use the AU accounts. It might take a while for the accounts to report. When shopping for a mortgage, ask if they allow AU accounts. Some mortgage companies do not allow AU accounts. But you shouldn't have a problem finding lenders who do allow them.

As a side note, please make sure you are monitoring his EX-98, EQ-04 and TU-04 scores. The mortgage company will use the middle of those three scores to underwrite the loan. I am not using the current FICO names. You can find the current names in the sticky:

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/The-many-flavors-of-FICO-Editions-versions-and-variations/td-p/1197617

Re: Does AU on CC score different than own account?

Anonymous — Fri, 30 Oct 2015 15:28:24 GMT

@CreditDunce wrote:
FICO uses some algorithms to weed out AU accounts for non-related people. For your spouse, FICO most likely use the AU accounts. It might take a while for the accounts to report. When shopping for a mortgage, ask if they allow AU accounts. Some mortgage companies do not allow AU accounts. But you shouldn't have a problem finding lenders who do allow them.

As a side note, please make sure you are monitoring his EX-98, EQ-04 and TU-04 scores. The mortgage company will use the middle of those three scores to underwrite the loan. I am not using the current FICO names. You can find the current names in the sticky:
http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/The-many-flavors-of-FICO-Editions-versions-and-variations/td-p/1197617

Wow - I never thought about the mortgage companies not allowing the AU accounts......don't a lot of spouses have AU accounts or joint accounts??.....I know that back when I was married the first time around (over 13 years ago) we had several cards that were AU and had no issues buying either the houses we had. Heck that is the only reason I survived my divorce, was that the cards were in my name, we took my ex off after he paid them off (per decree because he got the house) and I still had the cards.......

Re: Does AU on CC score different than own account?

Revelate — Fri, 30 Oct 2015 18:22:09 GMT

@Anonymous wrote:
@CreditDunce wrote:
FICO uses some algorithms to weed out AU accounts for non-related people. For your spouse, FICO most likely use the AU accounts. It might take a while for the accounts to report. When shopping for a mortgage, ask if they allow AU accounts. Some mortgage companies do not allow AU accounts. But you shouldn't have a problem finding lenders who do allow them.

As a side note, please make sure you are monitoring his EX-98, EQ-04 and TU-04 scores. The mortgage company will use the middle of those three scores to underwrite the loan. I am not using the current FICO names. You can find the current names in the sticky:
http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/The-many-flavors-of-FICO-Editions-versions-and-variations/td-p/1197617
Wow - I never thought about the mortgage companies not allowing the AU accounts......don't a lot of spouses have AU accounts or joint accounts??.....I know that back when I was married the first time around (over 13 years ago) we had several cards that were AU and had no issues buying either the houses we had. Heck that is the only reason I survived my divorce, was that the cards were in my name, we took my ex off after he paid them off (per decree because he got the house) and I still had the cards.......

It's becoming more and more rare that mortgage companies won't use an AU; heck several now will use a single AU on a person to qualify for a mortgage, and that's a pretty substantial change both from the AU perspective and the number of tradelines one too.

To expand on Credit Dunce's answer: FICO 8 in particular has some anti-abuse AU flags in it so it may or may not count there; however, if we're talking mortgage in the US, 99.9+% of those are underwritten on a mix of 04 and 98 scores, and those absolutely will count the AU for scoring purposes.

Re: Does AU on CC score different than own account?

vanillabean — Sat, 31 Oct 2015 02:47:26 GMT

Let's see if they can piggyback their way out of an underwater mortgage...