topic Would a no credit limit card help or hurt? in Rebuilding Your Credit

Would a no credit limit card help or hurt?

IneedAlotOfHelp — Tue, 05 Dec 2023 15:32:35 GMT

Being an entrepreneur, my credit has always fluctuated from 500-800 in a roller coaster fashion every 2-3 years... for the last 20 years.

I hate it and working on keeping it stable in the high 700s+... Currently, my score is around 630 and even if I pay off the debts I have, which isn't much, it wouldn't jump that much higher due to previous business and collections and stuff.

So... question.

My business partner has an Amex with no limit. He spends probably $150k a month in expenses and pays it off weekly.

Would having him add me as an authorized user, hurt or help since there is no "limit"? How does that work on reporting?

Much appreciated!

Re: Would a no credit limit card help or hurt?

Brian_Earl_Spilner — Tue, 05 Dec 2023 15:48:38 GMT

It wouldn't help. There's only one older version of fico that factors it into utilization, and it uses the highest reported balance as your limit. But nobody uses it anymore so it's moot.

Re: Would a no credit limit card help or hurt?

admiralsmoker — Tue, 05 Dec 2023 17:11:21 GMT

Being an authorized user will not increase your FICO score. It is based on your own accounts. If you go to the insights section, you will see that is says that authorized user accounts aren't considered.

Re: Would a no credit limit card help or hurt?

OmarGB9 — Sun, 10 Dec 2023 05:34:30 GMT

@admiralsmoker wrote:
Being an authorized user will not increase your FICO score. It is based on your own accounts. If you go to the insights section, you will see that is says that authorized user accounts aren't considered.

That's not entirely true - that insights thing is a bit misleading. Scoring-wise, authorized users are very much still factored into your scores. If you're an AU on a high limit, high balance card, you'd better believe it'll bring your scores down. Likewise, if you're an AU on a high limit, low balance card, it can prop up your scores a bit. That said, *report*-wise, yes, many lenders indeed discount AU accounts and only look at your own accounts when making lending decisions.

Re: Would a no credit limit card help or hurt?

hoang817 — Mon, 11 Dec 2023 19:31:14 GMT

@admiralsmoker wrote:
Being an authorized user will not increase your FICO score. It is based on your own accounts. If you go to the insights section, you will see that is says that authorized user accounts aren't considered.

iam sorry, i was wondering all these cards you have after you rebuild your credits or you have them prior?

Re: Would a no credit limit card help or hurt?

admiralsmoker — Tue, 12 Dec 2023 16:33:24 GMT

@hoang817 It was after. I couldn't get a credit card that was unsecured before.

Re: Would a no credit limit card help or hurt?

hoang817 — Fri, 15 Dec 2023 16:43:10 GMT

wow.. how did you get those? my credit report balance showing i only have 90k from my mortgage. and $0 for everything else with no collections. still i couldnt even get approve for the discover secured card.