@JM761 wrote:
Thanks for all the helpful info and taking the time to send such a helpful response. I greatly appreciate it! I'm defintely reading all I can but I start to second guess myself and am not sure if I'm reading the most up to date info.
The rebuilding credit forum has been extremely helpful. So many questions have been answered with the search function. I get stuck when I think "this isn't my *exact* situation and I want to be sure". I'm learning not to post frantically each time I have a question...as many have said: patience is key!
I appreciate the feedback about CC usage. We can definitely use the Chase card more. It's only his name on it (b/c I think adding my name might hurt him until my scores are up). We don't charge much on it now because we were trying to stick to the "low utilization looks best" concept on our card. It sounds like what you are saying is that it would be better is if we use it heavily during the month, drive up the balance up and then make a payment to the card *before the bill is processed* to bring utilization down, that would be best. Did I get that right? It makes a lot of sense - especially if we want to put things like monthly bills on there, like internet, phone, etc. I normally pay directly from credit account but I could pay on the card and pay it all at the end of the month.
It looks like my husband is pre-approved for a few cards but we will look and see which works best for us. I don't want to make a rash decision, so I will read the boards for the best options.
Thanks for the feedback about posting - I will try my best not to replicate and ask the same thing more than once. It's a bit hard when I finally feel like we are in a place to figure this all out - we had the rug ripped out from under us in 2017 and, as happened to so many people, we struggled for a bit. Things are finally looking up and I'm tackling debts and the report. I settled a charge off and we are working our way through collections. Unbeknownst to us, in the middle of our life-crisis, we missed some bills. We could have paid them back then and it was just lost. It's terrible...my credit was close to 800 before all this started and now it's in the toilet. I'm clawing my way back though. In the meantime, it would be great to work on my husband's too.
Thank you for all the helpful advice. It is very much appreciated!
Glad to help, @JM761! You're not alone in having gone through some unexpected financial reversals, myself included. One thing I enjoy about the forums is the chance to help others navigate those difficult and overwhelming times.
Yes, that's exactly what I mean about the Chase card. Keeping utilization under 10% is a good goal. Some consumers don't realize that they can use their cards heavily, then make early payments, and still keep reported utilization in-check. For purposes of getting a CLI, the lender will have all their internal records and see how much you've been charging and paying, so there's no need to let it report for it to help you to get an increase.
The point about a HP for a Chase increase is true (IF) you ASK for an increase. However, with heavy usage, you may be able to get an automatic CLI after awhile and that should be a soft pull.
And yes, putting all your montly bills on the card (which are going to be paid anyway) is a great way to pump up usage without going into debt, plus you may have the chance to receive rewards on the purchases if you have a rewards card!
If your husband adds you to his Chase card as an Authorized User (AU), your credit score won't affect his credit. He is still solely responsible for repaying the account. I think you're getting that confused with a JOINT credit application which is based on both of your credit and where you are equally liable for repayment. The AU card may help your FICO as long as his card remains in good standing while not hurting his FICO.
@JM761 wrote:Thank you for straigtening me out- and I mean that in the best way possible! I have notes from reading the forums and I definitely had it noted that being added as an AU was good for *my* credit but somewhere along the lines I just assumed it would be bad for his. This is so helpful and we can definitely have me added, esp since I have most of the bills going through my debit card.
I understand about the HP for asking on a CLI. I believe his last CLI was from heavy-use he said he got it in the mail. He also also told me last night he's been offered them before but didn't accept them b/c he thought it was a scam. Umm..what?! He just ignored the offer. He was wrapped up in work and said he didn't have time to investigate. Oy. That makes me think/hope that if we starting using it more we can push a auto CLI (trying to be hopeful in a gloomy situation)
After your last post, I decided the way I will handle this is to charge autopayments, like oil, internet, phone, etc to the card. At the same time, I will move the money to a separate account so I can pay myself throughout the month. Then, by the time it's time to pay the bill, I won't see the big drop in cash all at once from my checking. Might be extra work now but it will help me mentally. Paying a little over the month and "hiding" it from myself will make it easier to pay a big bill.
Thank you 1000x over. I am so grateful you spent some time to speak with my about this. I'm going to go research 2nd cards to add and see about a pre-approval. Tonight, we will discuss what bills to pay with the card and try and drive the usage up (but pay before the statement is processed)
So glad I was able to help, @JM761. You sound very excited and motivated and I'm glad the forum posts helped to give you some encouragement.
Yes, those "offers" from Credit Karma or Experian are marketing. They are "Partners" just because the get a referral kickback fee when you use their click-bait to apply. We see members complain about applying for those "offers" sometimes only to get denied. The better bets are directly on the bank websites that offer preapproval screening. Even then, it's never 100% guaranteed but it's a safer bet. If you do a web search for any of the major banks by name with the word "cards" you'll probably find a link to go directly to all of that lender's credit cards without using the third party links. (Make sure you look for links on the search engine with the bank's name in the URL.)
Another word about the Authorized User versus Joint, just to clarify. Normally, a JOINT card is determined that way at time of application. Both parties names are added to the account, both credit files are pulled and are used in the approval process, and both are EQUALLY liable for the debt. It's often done as a husband-wife but it can be other relationships. An AU card is often an "add-on," either at the the time of application (after the card was approved and the app asks if you want to add any AUs) or sometime later on. AUs benefit from the reporting of the card's charges and payments to their credit file, and it can help them to build credit history. Ultimately, all AU charges are the sole responsibility of the cardholder. On the other hand, if you are AU on a card where the primary cardholder is irresponsible, it *CAN* hurt your credit. (Not saying that applies in this case; just clarifying that there is a risk as AU.) Any utilization and payment history is reported on both files. Some of our members have added their minor or college-age children as AUs to their cards to help them to build credit, as an example. Spouses are often added after-the-fact to cards by our members, and I've done some of those with DW. So the AU's credit score or report has no bearing on the credit score or report of the primary cardholder, or on the underwriting of the credit card where you are AU. In the grand scheme of things, even if you have other JOINT or AU cards, it's good to have some individual credit in your own name. For example, I had a prior marriage and several of our joint accounts had to be either closed or divided (one party assumes responsibility, if the lender allows that.)
@JM761 wrote:Thank you (again) - I'm so motivated. My credit score was 770+ before we hit bottom. Unfortunately, that was fairly recently so the charge offs and issues are still new. I know they will get better over time but oof...it's hard to be patient! In the meantine, the boards are helping me learn so much. I know we can get back to where we were...hopefully thanks to some better decision making, it will be sooner rather than later. The wait for chargeoffs to disappear is killing me though!
Thanks for the tips on where to look online. I did some googling a bit after my last post and can now see the difference between going to a generic website vs going directly to the company's website for pre-approval. I will focus on the direct links - I think I'll have to wait a bit longer. Maybe I can get on my husband's Chase as an AU. That will help.
The AU explanation is very helpful! Thank you (again). I did a search in the group for AU and read a bunch of threads. In addition to your explanation, I found this one particularly helpful: https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/AU-complete-primer/m-p/6370264
Even though not all the specifics apply to my situation it was very helpful to understanding the whole AU concept.
This thread made me a bit wary: https://ficoforums.myfico.com/t5/General-Credit-Topics/AU-Question/m-p/6444043
It says that the CC might deny the poster's GF as a AU b/c the AU had a bad experience with the card holder. I know that was just someone saying it "could" happen but it has me a bit concerned b/c although my husband and I both bank w/ chase (checking and savings) since 2007/2010, my charge off (that I just recently settled for less than full balance) was with Chase. The card where I would be made AU is also with Chase. My husband's Chase card has been open since 2006 and has never been late, perfect payment history, so it's in good standing. I'm the one with the crappy chase charge-off.
Knowing this, do you think there is any validity to the concern? Is it a bad idea to try and go w/ Chase?
If you aren't sure or if it's too far off topic, please let me know and I will be happy to start a new topic (either here or the credit rebuilding forum). I checked the group but didn't find much else on the topic.
Also, we checked the process with Chase online. The FAQ says:
Will adding an AU affect my credit?
The (exact) wording of the response is: "We won't run a credit check on the primary cardmember or the authorized user. However, we'll let credit agencies know there's an authorized user on the account, which can affect their credit score"
I'm confused b/c I'm not sure who chase is referring to at the end of the sentence. "which can affect their credit score" - is that the primary or the AU? So confusing...I guess we can call in the morning but I think they will say just repeat the same info to us that is on the website. When I've called in the past, they do not explain very much. Just repeat the words from the policy.
Thanks again...
Glad you found my off-the-cuff AU discussion helpful, @JM761. There was some good additional info in that thread you linked also.
Under the circumstances, there is a chance that Chase would deny you as an AU, but I really doubt it. The primary cardholder is responsible for your charges and since you bank there, I'm thinking it would just be approved.
What they are saying is that even though Chase will not do a hard pull of the new AU when the AU is added to the card, the AU's FICO score could be affected since the new account will be reported, along with the information in it. You'll take a minor hit for a "new account scoring penalty" just as-if you had applied for a new credit card in your name. As that AU primer pointed out, you'll also "inherit" for better or for worse the scoring impacts of the account to which you are added. Let's say, for example, that DH had an 85% individual account utilization on that account and all your previous accounts had low utilization. Even though you're adding additional credit for utilization calculations, you're also adding the DEBT on that account to YOUR FICO scoring. On the other hand, if YOU had the high utilization but DH had 0% utilization on a $25K card, you just reaped the benefit of a $25K utilization "pad." AS the primer pointed out, the AGE of the account to which you are added can be a positive or a negative, depending on your AAoA (Average Age of Accounts.) If you have young, new credit and you add a 20-year card, it's a benefit. If you have 20-year AAoA and add a card that is six months old, it will lower your AAoA. The reason the Chase explanation is so vague is that FICO could be affected in different ways, for better or for worse when you are added as AU to a new account.
This all makes sense and I'm grateful for the explanation. I was feeling a bit weary after trying to download it all into my brain in a short span of time. We have so many things that need to happen and each one needs a significant amount of learning to understand/tackle. I re-read this thread (and the other one on AU) over a cup of coffee and it was even more helpful than yesterday. I needed some time to digest all the info. Everything you said makes sense. At this point, I think we will take the risk and ask to be an AU. I will do a few searches to see if others have run into this specific issue, just to be as safe as possible. I read that Amex won't allow you to be an AU if you have already had issues w/ Amex due to a charge off. I didn't see anything specific to chase but I'll look around again, just in case. In this case, although my husband's CL is only $5400, it isn't a huge pad but will help. His stellar credit history and low utilization (he has it charge about 5-6% each month and then pays off). As you mentioned, my file is fairly thin. My previous credit history was in the very good range but that was pre-2017. That is when the wheels fell off the credit cart (or is it card? 
)
Thank you, again. I feel like this is a significantly more solid plan than I had 2 days ago.
First, research AU/Chase (just b/c I'm being super cautious and I don't know if my ego can take the rejection!)
Next: switch autopay to his card. Move money for monthly bills on card to separate account. Set reminder to pay bill down in advance.
After that, I'm tackling collections to see if I can have any removed and then, let things breathe a bit. Hopefully after a cycle or two my efforts will show (paid off charge, AU, hopefully paid off collections) and I will be eligible for a secured card. Fingers crossed. I can't thank you enough for helping. This is truly a humbling experience.