Can my mother and I add authorized user between us?

[villemiami]

My mother and I have several credit cards. If I add her as an authorized user to all my credit cards, would that help her in order to be approved for a new credit card? Also, if she adds me as an authorized user to all her credit cards, would that help me in order to be approved for a new credit card? Or else is that a tactic only good for people with no credit history?

[JoeRockhead]

It's generally most helpful to people with little to no credit history... Also most beneficial to be added (or vise versa) to a card with a long history and low reported usage... Just because someone is added to a card doesn't mean that will establish a better chance of your own approval with that lender... All approvals are based on the individual's credit history that's applying.

[villemiami]

The oldest credit card of my mother is a Discover card which is 5 years old. My oldest is a 6 years old Citi Costco card. If I add her to my Costco card, would that improve her score? If she adds me to her Discover card, would that help me?

If I'm added to her Discover card, does it increase my overall credit limit (which is taken into account in card approval)?

[JoeRockhead]

It's really hard to say whether you, or she will benefit... some people get picked up by the FICO anti abuse algorithm and it does little, to nothing for them, others see more positive results. I personally (at the risk of becoming a victim of Satan's puppy (inside joke) don't believe there's much, if any benefit to AUs as there once was where FICO scores are concerned. Vantage scores are a different matter as they will see benefits and losses from adding AUs. But Vantage scores are used by very, very few lenders so...

You will get differing opinions, this is just mine based on my personal experiences. My best advice would be to try it with one card and see what you gain, or lose... you can always reverse it if you find it doesn't benefit (or harms) the added AU.

[villemiami]

OK, I added my mother to my Costco card, I will see in 1 month if there is an effect.

[JoeRockhead]

@villemiami I should have also added that you'll want to avoid having all AU cards reporting zero balance as there will in fact likely be an AU all zero penalty. So if it's the only one make sure it reports a small balance. 

[NoHardLimits]

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@JoeRockhead wrote:

@villemiami I should have also added that you'll want to avoid having all AU cards reporting zero balance as there will in fact likely be an AU all zero penalty. So if it's the only one make sure it reports a small balance. 

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@JoeRockhead is correct.  Authorized user accounts carry their own all zero penalty separate from your primary accounts.

Also, don't add an authorized user to an Amex account.  Amex will report it as a new account opened the day the AU was added.  There will be no benefit from years of history.

[FlaDude]

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@JoeRockhead wrote:

@villemiami I should have also added that you'll want to avoid having all AU cards reporting zero balance as there will in fact likely be an AU all zero penalty. So if it's the only one make sure it reports a small balance. 

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And conversely, adding a card with high utilization is not a good idea either.

[villemiami]

"all AU cards reporting zero balance ". Do you mean that the AU card (my mother) should use it or me? Can my mother use it some month and not some other months, or does she need to use it every month?

[NoHardLimits]

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@villemiami wrote:

"all AU cards reporting zero balance ". Do you mean that the AU card (my mother) should use it or me? Can my mother use it some month and not some other months, or does she need to use it every month?

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For the person who is an authorized user, you must have a balance reporting on your credit report for an account on which you are an AU.  It doesn't matter who does the actual spending.  At least one AU account must show a balance reporting.