topic Re: Authorized User Question (Adding & Removing) in General Credit Topics

Authorized User Question (Adding & Removing)

Anonymous — Wed, 26 Apr 2017 09:13:38 GMT

I'm trying to help a friend with a very thin credit file by adding her as an AU. I'm probably not going to issue her a card to limit my risk. My question is that if I remove her as an AU a couple months down the line how long will my positive history stay on her credit report? And would that history still be beneficial to her months/years down the line even though shes been removed as my AU?

Re: Authorized User Question (Adding & Removing)

CreditInspired — Wed, 26 Apr 2017 09:26:57 GMT

IMO, if you're only adding the AU for a couple of months, it's barely going to register a blip on their credit report, especially since their credit file is already very thin. I'll wait for others to chime in but I believe once the person is removed as an AU, it will affect their utilization.

Re: Authorized User Question (Adding & Removing)

MrsCHX — Wed, 26 Apr 2017 10:46:43 GMT

+1 once you remove her, the account disappears. I would say 6 months minimum. She gets her own card(s) and then you remove her. Her AAoA will be affected in this case and utilization; but then she'll have to finish he rebuild like everyone else and let any accounts she adds age.

Just tell her to take it slow. Add 1-3 accounts and build them.

Re: Authorized User Question (Adding & Removing)

Kforce — Wed, 26 Apr 2017 15:44:57 GMT

Adding an AU should be conditional on;

1 You have good credit.

2 The CC that you want to put her on reports to the Credit Bureaus.

Some banks do NOT report AUs to the credit bureaus

3 You keep the utility low on the card,

4 It has a few years of history. Tend to choose one of your older cards,

5 You keep/control of the AU-Card. (Protect your scores),

6 Amex is rumored to reset the age of account to new for an AU (no first hand experience)

7. Banks and CU's have different minimum age requirements for adding an AU.

As others have said it will take time on record to help her. If you add her I would just SD it and

let it report for a while. Keep track of her progress with credit and after it has improved enough,

you have to let her stand on her own and remove her as AU.

It will only help Util while she is a AU, however it will help her AAoA much longer, and also add

records of good payment if you always pay.

Re: Authorized User Question (Adding & Removing)

Anonymous — Wed, 26 Apr 2017 16:09:06 GMT

@MrsCHX wrote:
+1 once you remove her, the account disappears. I would say 6 months minimum. She gets her own card(s) and then you remove her. Her AAoA will be affected in this case and utilization; but then she'll have to finish he rebuild like everyone else and let any accounts she adds age.

Just tell her to take it slow. Add 1-3 accounts and build them.

This.

An ex-gf added me as an AU on her accounts. When she closed the accounts, or removed me (I don't know which), the tradelines disappeared from my reports. The AU game isn't what it's portrayed to be.

Re: Authorized User Question (Adding & Removing)

Kforce — Wed, 26 Apr 2017 17:49:16 GMT

jjking54 wrote:

    An ex-gf added me as an AU on her accounts. When she closed the accounts,
    or removed me (I don't know which), the tradelines disappeared from my reports.
    The AU game isn't what it's portrayed to be.

My daughter has two accounts that she was a AU on that are reporting.
Not sure if it is because of the same last name and address or because

she was an AU at time the cards were closed but one has been closed

more than 4 years.

Re: Authorized User Question (Adding & Removing)

Anonymous — Wed, 26 Apr 2017 18:59:17 GMT

@Kforce wrote:

@   jjking54 wrote:

    An ex-gf added me as an AU on her accounts. When she closed the accounts,
    or removed me (I don't know which), the tradelines disappeared from my reports.
    The AU game isn't what it's portrayed to be.

    My daughter has two accounts that she was a AU on that are reporting.
    Not sure if it is because of the same last name and address or because
    she was an AU at time the cards were closed but one has been closed
    more than 4 years.

This is exactly what I was wondering about. Does it report as a closed account? Do you remember which bank does this?

Re: Authorized User Question (Adding & Removing)

Anonymous — Wed, 26 Apr 2017 19:00:08 GMT

Thanks everyone for your input! Greatly appreciated!

Re: Authorized User Question (Adding & Removing)

Kforce — Wed, 26 Apr 2017 19:19:12 GMT

KidFICO wrote:

This is exactly what I was wondering about.

Does it report as a closed account?

Do you remember which bank does this?

The older card was a 76-Union gas card.
The newest card was the Barclay-Sallie Mae.

I had closed each card, however my daughter was
an AU on the cards at the time that I closed the accounts.

Re: Authorized User Question (Adding & Removing)

MrsCHX — Wed, 26 Apr 2017 21:25:53 GMT

@Kforce wrote:
@Anonymous wrote:

This is exactly what I was wondering about.
Does it report as a closed account?
Do you remember which bank does this?

The older card was a 76-Union gas card.
The newest card was the Barclay-Sallie Mae.

I had closed each card, however my daughter was
an AU on the cards at the time that I closed the accounts.

The other poster said they were removed vs the account being closed. If OP removes her as an AU, she will lose the account history.

Re: Authorized User Question (Adding & Removing)

Anonymous — Wed, 26 Apr 2017 21:28:03 GMT

@MrsCHX wrote:
@Kforce wrote:
@Anonymous wrote:

This is exactly what I was wondering about.
Does it report as a closed account?
Do you remember which bank does this?

The older card was a 76-Union gas card.
The newest card was the Barclay-Sallie Mae.

I had closed each card, however my daughter was
an AU on the cards at the time that I closed the accounts.

The other poster said they were removed vs the account being closed. If OP removes her as an AU, she will lose the account history.

Correct ... there is no trace of either of those accounts now on my reports. One was a Best Buy Visa ... the other was some Mastercard ... might have been a Cap 1 if I recall.

Re: Authorized User Question (Adding & Removing)

Anonymous — Thu, 27 Apr 2017 08:43:13 GMT

@Anonymous wrote:
@MrsCHX wrote:
@Kforce wrote:
@Anonymous wrote:

This is exactly what I was wondering about.
Does it report as a closed account?
Do you remember which bank does this?

The older card was a 76-Union gas card.
The newest card was the Barclay-Sallie Mae.

I had closed each card, however my daughter was
an AU on the cards at the time that I closed the accounts.

The other poster said they were removed vs the account being closed. If OP removes her as an AU, she will lose the account history.
Correct ... there is no trace of either of those accounts now on my reports. One was a Best Buy Visa ... the other was some Mastercard ... might have been a Cap 1 if I recall.

I see I see. I guess I'm just trying to find ways to cheese the system. Thanks everyone for your input!

Re: Authorized User Question (Adding & Removing)

Revelate — Fri, 28 Apr 2017 08:14:15 GMT

@Anonymous wrote:
@Anonymous wrote:
@MrsCHX wrote:
@Kforce wrote:
@Anonymous wrote:

This is exactly what I was wondering about.
Does it report as a closed account?
Do you remember which bank does this?

The older card was a 76-Union gas card.
The newest card was the Barclay-Sallie Mae.

I had closed each card, however my daughter was
an AU on the cards at the time that I closed the accounts.

The other poster said they were removed vs the account being closed. If OP removes her as an AU, she will lose the account history.
Correct ... there is no trace of either of those accounts now on my reports. One was a Best Buy Visa ... the other was some Mastercard ... might have been a Cap 1 if I recall.
I see I see. I guess I'm just trying to find ways to cheese the system. Thanks everyone for your input!

The cheese is helping your friend get her initial credit file started.

If she's clean anyway, tack the AU on, open up call it 3 major credit cards and a share secured loan, pay down said SSL, don't run up the balances on the credit cards, and watch the score be 760 in a year anyway and 800 a year after that, and after two years she can get whatever credit card or anything else that she needs.

That's how it works on modern algorithms, you don't really need a long-term AU to make a big difference you just need to get the positive history gravy train started and then it's up to the individual not to screw up the pretty green OK's; if you want the long term AU, you add her, and then you leave her on it... assuming it's counted anyway under FICO 8/9 which it might not be, but you can always cheese it by opening up the intial couple of cards from lenders that are known to UW on the older algorithms.

If she's a dirty file, YMMV, and we'd need more information on how best to build if you haven't given that to her already.

Re: Authorized User Question (Adding & Removing)

Anonymous — Sat, 06 May 2017 20:36:43 GMT

I added my daughter as AU on my AMEX HH card in 07, even though I took her off a couple years ago it still reports that time and on her CR it shows positive (and until it reaches 10yrs from last report date). Unfortunately she has tanked her scores with multiple 120+ on her CCs. Today I added my 15 yr old to the same card. The agent (chat) was excellent and informed me that when he ages 18, AMEX HH will open a account in his name as long as account stays in good standing and low UTI. They will be sending out his card in 7-10 days. They did check his CR/SSN to make sure he has never "burned" them (that would have resulted in auto deny). I was asked what "limit" I wanted him to access, I am fine with full access because he will never actually get that card in his hands (lol). My goal was/is to help him build credit (as with DD) and not get stuck with "builder cards" when he turns 18

Re: Authorized User Question (Adding & Removing)

Cherekas — Mon, 08 May 2017 14:51:00 GMT

I actually went this route as well with my 16 year old soon, he turned 16 recently and I added him to an older card of mine. I will do the same when my daughter turns 16 next January. It actually helps them build credit now instead of waiting until they turn 18. I've actually started credit conversations with them so they understand the importance of using it correctly.