topic Re: Authorized User, hurt or help? in Understanding FICO® Scoring

Authorized User, hurt or help?

Anonymous — Sat, 03 Jan 2009 00:14:02 GMT

I'm new here but am wondering about Authorized Users and how they affect your credit score.

Does becoming an AU help your FICO score if you don't currently have a high credit limit? Assuming the LOC has an excellent payment history and more credit available? Is there a time to not have or become an AU? Would it be completely different to have an AU or Joint Account?

Re: Authorized User, hurt or help?

SCF — Sat, 03 Jan 2009 00:18:13 GMT

Hi islandsky, and welcome to the forums!

Becoming an AU on a credit card or LOC can definitely help your FICO score, but it can also hurt. If it decreases your util, and/or AAoA, then it will help, but any negatives on the account (including if it is younger than your current accounts) can also hurt you. If the util goes up in the future, that will also affect your score. Bear in mind that once FICO 08 rolls out later this year (probably?) this all may change.

As for the different between AU and joint, that comes down to responsibility. An AU cannot be held responsible for paying back the debt, so if the account owner defaults, the OC or CA can't come after you. A joint user, on the other hand, has equal responsibility for repayment of the debt, so only become a joint user if you want to and are able to pay back the debt should something happen.

Hope that helps! If you want some more info, check out the stickies around the forums and keep the questions coming.

Re: Authorized User, hurt or help?

Anonymous — Sat, 03 Jan 2009 00:24:36 GMT

Thanks so much!

Assuming the AAoA is the same for an AU as the original Account holder, it would help. Unless they determine a differnt age for the AU?

What is FICO 08?

Thanks again!

Re: Authorized User, hurt or help?

haulingthescoreup — Sat, 03 Jan 2009 00:40:19 GMT

Here you go:

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&message.id=31569#M31569

Also, I would highly advise going AU and NOT joint. There are a lot of problems involved with going joint on anything other than a mortgage.