topic Re: Authorized User - Should I add myself? in General Credit Topics

Authorized User - Should I add myself?

Anonymous — Thu, 28 Jan 2016 03:53:05 GMT

I am new to credit improvement and had a question about increasing my limit by adding myself to an account in my wife's name.

My current credit card limits are about $12k. Util is always 5-15%. When I started this, I went on an app spree and now have over 20 inquiries that will be one year old this summer. I have since been sitting back, using cards to show payment responsibility and paying them faithfully.

My question is, should I add more available credit by having myself added to one of my wife's accounts? She has several cards, one of which has a $10k limit and is never used. So, if I understand correctly, I could have her add me as an authorized user and take advantage of the increased available credit. I have read that having more available credit reporting is helpful to scores but I wanted to check with the pros here before I make any decisions!

Thanks in advance.

Re: Authorized User - Should I add myself?

Anonymous — Thu, 28 Jan 2016 04:25:39 GMT

Being added as an AU can be beneficial, just thinking of the Fico scoring.

If the age of the account is older than yours, it will bump yours out a little.

If the CL is good, it will increase your total.

As long as the UTI is lower than 10% and no lates, it will benefit you.

If someone were to perform a manual review of your credit, it would be obvious it was not a picture of your credit standing. If you're not going for a mortgage soon, it should be Ok.

hth

Re: Authorized User - Should I add myself?

Anonymous — Thu, 28 Jan 2016 05:01:01 GMT

@Anonymous wrote:

If someone were to perform a manual review of your credit, it would be obvious it was not a picture of your credit standing. If you're not going for a mortgage soon, it should be Ok.

Good advice from ASBinJax.

I'd add that if someone does a manual review of your credit, it's also going to be obvious that it's your spouse's account that you're an authorized user on. That's a whole lot different (better) than if you were an authorized user on your parents' card or your buddy's card. Spouses share credit -- they expect that.

Re: Authorized User - Should I add myself?

Anonymous — Thu, 28 Jan 2016 06:31:00 GMT

Thank you both for the input. One other question. The card issuer is asking us we would like a separate card mailed to me in my name. Is this necessary for reporting purposes or can I decline this option?

Re: Authorized User - Should I add myself?

takeshi74 — Thu, 28 Jan 2016 13:37:57 GMT

Your call to make but I wouldn't expect much, if any benefit from being added as an AU. You already have your own TL's. TL's where you are an AU will not always be considered anyway and you need to focus on building your own TL's. If being an AU would be beneficial aside from scoring reasons then certainly add yourself.

@Anonymous wrote:
I am new to credit improvement and had a question about increasing my limit by adding myself to an account in my wife's name.

My current credit card limits are about $12k. Util is always 5-15%.

What do you perceive as the benefit to having higher limits report? Your utilization is already low. If you want it lower you can pay down balances if you're carrying. If you're not carrying you can pay prior to report date to lower the reported balances.

@Anonymous wrote:
When I started this, I went on an app spree and now have over 20 inquiries that will be one year old this summer.

With those scores (assuming they're FICO 8s -- always consider the specific scoring model) and limits an app spree probably was not a good idea. While inquiries are a relatively small factor they can have a bigger impact for those with thin and or poor profiles. Identify the deficiencies with your reports and work on them.

@Anonymous wrote:
I have read that having more available credit reporting is helpful to scores but I wanted to check with the pros here before I make any decisions!

It's not higher limits in and of themselves. Higher limits can help to reduce Revolving Utilization but if you're already at 5-15% you're already low and the gains as you get lower wiill be smaller. You have other bigger factors that are limiting you and that's where you need to focus. We don't have enough info to tell you waht those would be. You can review and assess your own reports or disclose some additional information about your credit profile if you want our help.

@Anonymous wrote:
The card issuer is asking us we would like a separate card mailed to me in my name. Is this necessary for reporting purposes or can I decline this option?

It is not required for reporting purposes.

Re: Authorized User - Should I add myself?

Anonymous — Thu, 28 Jan 2016 13:51:36 GMT

@takeshi74 wrote:

Thanks takeshi74. I read somewhere that not having enough available credit can hurt your score. I figured that adding some more to the available balance would fix this. Not to mention that the AAoA would help me as well, assuming that is factored in as an AU.

I'm not worried about raising my score quickly so I can get a mortgage or anything important (that's in my wife's name) It's more of a fun hobby for me that requires zen like patience. I am setting up a secured loan as soon as Alliant sends me the welcome packet and I thought I would try and raise the overall available credit as well. Other than that, I'm just waiting to see how my scores will look around August. Thanks again!

Re: Authorized User - Should I add myself?

RobertEG — Fri, 29 Jan 2016 19:46:25 GMT

Since you are in experimental mode, it would be interesting to see whether, when you app for a loan, their manual review will question the fact that you have an AU in your report.

Having an AU means your score is not representative of your own personal credit risk analysis, and they cannot back out the efffect of the AU on your three-digit score.

Keep us posted as to whether they question having an AU, or want it removed........