topic Re: Adding a joint user in Rebuilding Your Credit

Adding a joint user

p- — Thu, 14 Aug 2008 15:17:43 GMT

Hey all,

I'm working on my credit as well as Wifey's, and each of us have some good positive accounts. She has a Chase card with a 5k limit, and my report is low on available credit. I'm using 1% of my available $300.

We are considering adding me as a joint user to that card to increase my avg credit age, and total available credit. We have a policy of using these cards only for emergencies and paying them down to 1 cent every month. Will this help my score based on the information in my credit log?

I also included her as a joint owner on my Motorcycle installment loan, as she had no installment credit on her report. I know the three inquiries will hurt for a little while, but in the long run will the installment account help round out her report?

Thanks for the help, and please feel free to read my log and offer any ideas or advice.

Regards,

Re: Adding a joint user

Anonymous — Thu, 14 Aug 2008 19:02:40 GMT

I would have her add you as a AU not joint. An AU gets all the good and bad!

IMO because you have no idea what can happen down the road ( an injury or illness) if you each have your own accounts and can not make all payments.....you can keep one person credit good and only hurt one person.

Re: Adding a joint user

p- — Thu, 14 Aug 2008 19:53:48 GMT

I thought under the new FICO 08 guidelines the AU can't help your score... Can you confirm this is correct / incorrect? See news story:

http://carolinanewswire.com/news/News.cgi?database=columns.db&command=viewone&id=331

Re: Adding a joint user

fused — Thu, 14 Aug 2008 19:56:23 GMT

FICO 2008 will continue factoring in legit AUs...from the horse's mouth

http://www.fairisaac.com/fic/en/news/press-releases/fair-isaac-innovation-of-fico-08-score.htm

Re: Adding a joint user

p- — Thu, 14 Aug 2008 19:56:25 GMT

and then I found this: http://credit.about.com/b/2008/07/31/260.htm which makes it sound like they will consider AU accounts....

???

Re: Adding a joint user

p- — Thu, 14 Aug 2008 19:57:19 GMT

... sweet.... AU all the way, that's perfect. Thanks for the help.

Re: Adding a joint user

Anonymous — Fri, 15 Aug 2008 00:20:05 GMT

How are they going to determine "legitimate" AU's? I just got added as an AU on a few of my grandmothers cards with large limits and less than 5% utilization. I'm hoping to see my score jump after these start reporting.

Re: Adding a joint user

fused — Fri, 15 Aug 2008 00:43:00 GMT

silllyme wrote:
How are they going to determine "legitimate" AU's? I just got added as an AU on a few of my grandmothers cards with large limits and less than 5% utilization. I'm hoping to see my score jump after these start reporting.

OF course, it's top secret, nobody can answer this. What else do you have on your reports?

Message Edited by fused on 08-14-2008 02:43 PM

Re: Authorized user

p- — Thu, 21 Aug 2008 22:23:45 GMT

Applied today to be an AU on Wifey's chase card... They asked my name only but not ssn or anything; how will that get on my credit report?

Message Edited by p- on 08-21-2008 03:23 PM

Re: Authorized user

Anonymous — Thu, 21 Aug 2008 22:32:00 GMT

p- wrote:
Applied today to be an AU on Wifey's chase card... They asked my name only but not ssn or anything; how will that get on my credit report?

Message Edited by p- on 08-21-2008 03:23 PM

I wondered the same thing when I made DH an AU on some of my accounts and they only asked for his name. They found him though. I think it might have something to do with the name and mailing address being enough to link to a person.

Re: Authorized user

Anonymous — Thu, 21 Aug 2008 23:14:39 GMT

While being added as an AU is handy in certain situations and it is a good way to help someone who is rebuilding, and it is good news that FI will continue to score these TLs, I think it is important for everyone to realize that you do need your own TLs as well.

Don't rely solely on AU accounts to help your score. Build your own that will grow with you.

Even though FI has decided these will be counted in scoring, a lender will still now whether it is AU or your own account.