topic Re: Authorized user on my GF's CC Account in Rebuilding Your Credit

Authorized user on my GF's CC Account

Hcontreras — Sat, 04 Jan 2014 05:45:22 GMT

I am looking to increase my score into the 720's or higher. Right now, my scores are 637 for EQ and TU, and 665 for EXPN. I have very limited credit history right now. I only have one Capital One credit card (secured) with a limit of $600 and have only had it for 6 months only. That's all! My girlfriend is willing to add me as an authorized user on her credit card. Her credit card account (Chase Slate card account) is 17 years old and has PERFECT payment history (no lates), her utilization is about 13% right now and almost never goes above 15%. Her credit limit right now is about $20,000.

My questions are:

1. Will this possibly put me into the 720's FICO score or higher?

2. How long will it take to show her history on my credit report?

3. When it finally does show on my credit report, will it indicate on my credit report that I'm an authorized user only? Or will it just show as simply my credit history (Without indicating that it's her account)?

Re: Authorized user on my GF's CC Account

Anonymous — Sat, 04 Jan 2014 06:51:54 GMT

@Hcontreras wrote:
I am looking to increase my score into the 720's or higher. Right now, my scores are 637 for EQ and TU, and 665 for EXPN. I have very limited credit history right now. I only have one Capital One credit card (secured) with a limit of $600 and have only had it for 6 months only. That's all! My girlfriend is willing to add me as an authorized user on her credit card. Her credit card account (Chase Slate card account) is 17 years old and has PERFECT payment history (no lates), her utilization is about 13% right now and almost never goes above 15%. Her credit limit right now is about $20,000.

My questions are:

1. Will this possibly put me into the 720's FICO score or higher? Hard to tell, do you have any baddies?
2. How long will it take to show her history on my credit report? IF it reports, usually after the next statement. Remember the CB must link your information - you will run into issues with different last names and/or street address in CRs
3. When it finally does show on my credit report, will it indicate on my credit report that I'm an authorized user only? Or will it just show as simply my credit history (Without indicating that it's her account)? yes, it will say authorized user and some creditors discount the AU in their internal scoring. Ie Chase

Re: Authorized user on my GF's CC Account

Hcontreras — Sat, 04 Jan 2014 06:55:30 GMT

No baddies. Given your answers, could it get me to 720 or so?

Re: Authorized user on my GF's CC Account

Anonymous — Sat, 04 Jan 2014 08:38:20 GMT

@Hcontreras wrote:
No baddies. Given your answers, could it get me to 720 or so?

Doubtful that you will get almost 100 points ; is there a particular reason why you want 720?

Re: Authorized user on my GF's CC Account

Hcontreras — Sat, 04 Jan 2014 18:13:43 GMT

I want to get my score as high as possible because I want to buy a car in about a years time. I don't want to give the banks an excuse to take advantage of me by overcharging on the interest rate (as they do many).

how many points do you think it could get me? Ballpark?

Re: Authorized user on my GF's CC Account

Hcontreras — Sat, 04 Jan 2014 21:23:55 GMT

At the very minimum, I'm hoping I would like to see my score go to about 700. Anybody think it's possible by doing this?

Re: Authorized user on my GF's CC Account

RobertEG — Sat, 04 Jan 2014 21:57:30 GMT

When you have the credit history of one or more accounts of another on your credit report, any potential creditor who does a manual review in consideration of your request ffor credit can see the fact that your score is based, in part, on the history of another.

They will not be able to then use your score as an indication of only your own risk based on your own history. They have no way to back out one or more accounts and produce a score that represents your own risk history. They may choose to discount your score in their decision making.

The AU practice is good for those applying for relatively low levels of credit, where the creditor relies wholly or primarily on your score.

However, as the principal amount of requested credit rises, and thus their potential risk, they may choose to do a more in-depth review, and having an AU could result in their discounting of your score in their decision making. Auto and mortgage loans are usually higher principal loans.

Re: Authorized user on my GF's CC Account

Hcontreras — Sun, 05 Jan 2014 00:12:18 GMT

@RobertEG wrote:
When you have the credit history of one or more accounts of another on your credit report, any potential creditor who does a manual review in consideration of your request ffor credit can see the fact that your score is based, in part, on the history of another.

They will not be able to then use your score as an indication of only your own risk based on your own history. They have no way to back out one or more accounts and produce a score that represents your own risk history. They may choose to discount your score in their decision making.

The AU practice is good for those applying for relatively low levels of credit, where the creditor relies wholly or primarily on your score.
However, as the principal amount of requested credit rises, and thus their potential risk, they may choose to do a more in-depth review, and having an AU could result in their discounting of your score in their decision making. Auto and mortgage loans are usually higher principal loans.

So how am I supposed to get myself into position to make a purchase like that (a vehicle)? No one is willing to give me credit with 1 credit card at a $600 limit for 6 months (ontime payments)? What else can or should I do to get myself into position?

Re: Authorized user on my GF's CC Account

Lasardo — Sun, 05 Jan 2014 00:35:09 GMT

I Had the same circumstances; no credit history so my bf put me on a NEW Amex..I received an email: 30 points then he added me to his 15+ year old WF..I gained another 15.

Good luck!

Re: Authorized user on my GF's CC Account

Hcontreras — Sun, 05 Jan 2014 00:38:07 GMT

@Lasardo wrote:
I Had the same circumstances; no credit history so my bf put me on a NEW Amex..I received an email: 30 points then he added me to his 15+ year old WF..I gained another 15.
Good luck!

Did he add you as an "Authorized user"? Or was it a joint account?

Re: Authorized user on my GF's CC Account

Anonymous — Sun, 05 Jan 2014 07:32:08 GMT

@Lasardo wrote:
I Had the same circumstances; no credit history so my bf put me on a NEW Amex..I received an email: 30 points then he added me to his 15+ year old WF..I gained another 15.
Good luck!

OP is asking about a secured loan ie car loan. RobertEG is correct, one cc from an AU will be insufficient to qualify for a secured auto loan in most cases. If your GF is willing to add you as an AU, use the score bump to obtain your own cc preferably from a CU. When you are ready to app for your car loan, they will probably be more willing to provide financing.

Re: Authorized user on my GF's CC Account

Hcontreras — Sun, 05 Jan 2014 17:23:22 GMT

@Anonymous wrote:
OP is asking about a secured loan ie car loan. RobertEG is correct, one cc from an AU will be insufficient to qualify for a secured auto loan in most cases. If your GF is willing to add you as an AU, use the score bump to obtain your own cc preferably from a CU. When you are ready to app for your car loan, they will probably be more willing to provide financing.

09Lexie - But in my original post I wrote that I already have a secured credit card at a $600 limit, for 6 months already. I have no baddies. Will it be the same course of action given this circumstance? Meaning, should I utilize the score bump from the AU account to get another cc? Or would it be better for me to put another $1.400 deposit on my sole secured cc account to make it a $2,000 limit and go from there (Continue using at 10% utilization and making on time payments, etc)? What would be my best course of action from here, so that I can get myself in position for an auto loan at a decent rate? I guess that's the bottom line for me on this entire post.

Re: Authorized user on my GF's CC Account

Anonymous — Sun, 05 Jan 2014 17:27:27 GMT

@Hcontreras wrote:
@Anonymous wrote:
OP is asking about a secured loan ie car loan. RobertEG is correct, one cc from an AU will be insufficient to qualify for a secured auto loan in most cases. If your GF is willing to add you as an AU, use the score bump to obtain your own cc preferably from a CU. When you are ready to app for your car loan, they will probably be more willing to provide financing.

09Lexie - But in my original post I wrote that I already have a secured credit card at a $600 limit, for 6 months already. I have no baddies. Will it be the same course of action given this circumstance? Meaning, should I utilize the score bump from the AU account to get another cc? Or would it be better for me to put another $1.400 deposit on my sole secured cc account to make it a $2,000 limit and go from there (Continue using at 10% utilization and making on time payments, etc)? What would be my best course of action from here, so that I can get myself in position for an auto loan at a decent rate? I guess that's the bottom line for me on this entire post.

Is it a secured account that will graduate? Another account wouldn't hurt. 2 credit cards reporting would help you in the long run and with the bump from her cards, you should be able to get an unsecured one, especially adding in your own 6 month history with your own card. Do you have a relationship with a credit union?

Re: Authorized user on my GF's CC Account

Hcontreras — Sun, 05 Jan 2014 17:30:43 GMT

@Anonymous wrote:
@Hcontreras wrote:
@Anonymous wrote:
OP is asking about a secured loan ie car loan. RobertEG is correct, one cc from an AU will be insufficient to qualify for a secured auto loan in most cases. If your GF is willing to add you as an AU, use the score bump to obtain your own cc preferably from a CU. When you are ready to app for your car loan, they will probably be more willing to provide financing.

09Lexie - But in my original post I wrote that I already have a secured credit card at a $600 limit, for 6 months already. I have no baddies. Will it be the same course of action given this circumstance? Meaning, should I utilize the score bump from the AU account to get another cc? Or would it be better for me to put another $1.400 deposit on my sole secured cc account to make it a $2,000 limit and go from there (Continue using at 10% utilization and making on time payments, etc)? What would be my best course of action from here, so that I can get myself in position for an auto loan at a decent rate? I guess that's the bottom line for me on this entire post.
Is it a secured account that will graduate? Another account wouldn't hurt. 2 credit cards reporting would help you in the long run and with the bump from her cards, you should be able to get an unsecured one, especially adding in your own 6 month history with your own card. Do you have a relationship with a credit union?

I need to check with Capital One to see if my credit card graduates, because I'm not sure. Yes I am a member of a CU currently (Halliburton Employees FCU).

Re: Authorized user on my GF's CC Account

Anonymous — Sun, 05 Jan 2014 17:33:30 GMT

Cap One will never unsecure.

Talk to your credit union about opening a CC with them. With the relationship you currently have, you might find yourself with a nice limit at a great rate. Tell them your goals, and they'll likely also be your best bet for your auto loan. Some CUs will approve you for a CC and auto loan with the same hard pull of your credit.

Re: Authorized user on my GF's CC Account

Hcontreras — Sun, 05 Jan 2014 18:15:12 GMT

@Anonymous wrote:
Cap One will never unsecure.

Talk to your credit union about opening a CC with them. With the relationship you currently have, you might find yourself with a nice limit at a great rate. Tell them your goals, and they'll likely also be your best bet for your auto loan. Some CUs will approve you for a CC and auto loan with the same hard pull of your credit.

I made a BIG mistake about 2 months ago...I got impatient and went to them (the CU) and wanted to see if they would approve me for a $1,000 personal loan so that I could try to establish some credit, along with my cc (which at the time I only had about 4 months). Well, they denied me, but not totally. They said I would have to use some collateral for it. I didn't put up any collateral. Therefore, unfortunately, it was a hard pull with nothing to show for it. :-( They cited that they couldn't do the loan unsecured due to my "limited credit history". Then, that's how I came to this post asking to see if an AU would help me get my score up. I guess I'll have to wait a while to approach the CU again.

Re: Authorized user on my GF's CC Account

Lasardo — Sun, 05 Jan 2014 19:34:56 GMT

Are you familiar with a "Credit Builder" account?

Re: Authorized user on my GF's CC Account

Hcontreras — Sun, 05 Jan 2014 19:58:30 GMT

Tell me. Please....

Re: Authorized user on my GF's CC Account

Anonymous — Sun, 05 Jan 2014 23:07:53 GMT

Here is a link to DCU's credit builder loans. I am not a member of DCU but it offers an idea of what the previous poster meant since they are all about the same: https://www.dcu.org/loans/credit-builder.html

Re: Authorized user on my GF's CC Account

Hcontreras — Mon, 06 Jan 2014 00:23:59 GMT

@Anonymous wrote:
Here is a link to DCU's credit builder loans. I am not a member of DCU but it offers an idea of what the previous poster meant since they are all about the same: https://www.dcu.org/loans/credit-builder.html

Oh ok. Thank you. I can do this at my credit union for 3.35% interest. The only downside, I guess, is they only report to Experian. I would like for them to report to all, not just one. That's what the loan officer at my credit union told me. :-( Does anyone know if Capital One bank does this? I know that Capital One reports to all.