Help Please

[Anonymous]

 I added my wife as an authorized user to my BofA card last week. I did this because she has no credit history and she was even turned down by Orchard bank for a secured card I think as a result of them being her first ever inquiry. Would her being an au for 6 months help her get her own cards and also does BofA report authorized users? The customer service rep did ask for her ss number when I added her. I know she won't establish a score but how do cc companies view this situation when applying for new accounts?

[Anonymous]

The only part of this question that I can answer with certainty is that yes, BofA will report AUs (and quite quickly).

Hopefully others will chime in,

[Anonymous]

If the account she is being added to has at least six months of history, then she will have a score immediately once it reports.  This, at least, until FICO 08 kicks in, at which point AUs will no longer count for scoring purposes.

It might be a good idea to wait for the AU account to report, and then pull her score.  At that point you will have a better idea of what CC she may qualify for on her own.  IMO, she should make a point to get credit in her own name before FICO 08 kicks in.

Orchard did not turn her down for not having any inquiries, BTW.  Inquiries are seen as a (slight) negative factor on a report, and no CCC will turn someone down for having zero inquiries.  She was probably turned down for having no open accounts at all, however.

[Anonymous]

   Cheddar...So FICO 08 hasn't begun yet, and when do you anticipate it going into effect? I've had the account for about a year $1300 high without ever being late so this will definately help my wife and now I see time is of the essence. Two more questions...Is there any unsecured cards you would recommend for her once the account shows up and would it be safe to start applying once she recieves her card? Thank you for your advice....oh and is it true that a score will be generated for her?

[Anonymous]

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RichRaven wrote:

   Cheddar...So FICO 08 hasn't begun yet, and when do you anticipate it going into effect?

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No, it hasn't gone into effect yet.  The best answer anyone can give is sometime this year or maybe even next year.  We just don't know at this point.

RichRaven wrote:

Is there any unsecured cards you would recommend for her once the account shows up 

You might try a credit union, or Orchard and Capital One as a last resort.  Stay away from the sub-subprime issuers who charge an arm and a leg in fees, though.

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RichRaven wrote:

would it be safe to start applying once she recieves her card?

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Not necessarily.  You need to make sure the AU card is on her reports before you apply.  As Peas said above, BofA is quick to report new accounts and AUs, but I would make sure, just to be on the safe side.

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RichRaven wrote:

oh and is it true that a score will be generated for her?

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Yes, as long as she has at least one account with six months of history (which she does), she will have a score.  AUs get the benefit (or detriment) of the full history of the account, even if they are added years after the account was opened.

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RichRaven wrote:

Thank you for your advice....

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You're welcome.  Happy to help.

[Cleanmachine]

RichRaven

If your wife has any income, May I suggest that you call BOA Customer Service and see if they will open a separate account in her name. You can explain to them that you are trying to help your wife established her own line credit.

Remember, you can use both of your gross income as household income to qualify.

I am totally against any credit card that charges a fee to use their card. I would highly recommend that you stay away from these cards.

I would also suggest you follow the advice of cheddar and open an account with a local credit union.

Good luck

[jmbfl]

By the time you get your BofA card it usually will have been reported. However, in the case of an AU I would check to make sure it has been. I would definetely go to a CU and probably a local one. I would stay away from the larger national ones until better established. I would most definitely talk to BofA about having opening her own account. Over the course of years a relationship with BofA CC's will grow with you!

[rom828]

Rich, just wanted to chime in with some encouragement.

When we were buying our house last October, discovered DH didnt even have a score!  Had to actually get the mortgage based just on my scores and income as a result.

Last time we'd checked his  was in '05.  We'd had auto loans in his name, but he'd not had any revolving accts, etc, so I guess as time went by, those loans all paid off (never late but nothing new since 05)  tho still showing on report, there wasnt enough there to score him on.

In November or December, I added my husband as AU on my catalogue accts, ie:  Brylane, Chadwick, Metrostyle and  also to Old Navy   I learned about the "au" thing on this forum and thought it was worth a try to see if it helped him get a score.  These accounts all have CLs of about $1K and 1-5% utilization.

Didn't think too much else about it as we'd already got the mortgage.  In April decided to pull his scores when I was checking mine and imagine my shock when he had scores of TU726  EQ691  EX 692 (all FICOS)!!

Since then he got cards of his own (convinced him it's ok to have revolving...he can just PIF....and keep 1 at 5%):  Amex Gold, Amex Sky Miles, Citi Platinum, and now this BoA, and while his score took very small dings for the apps (5-10 points), they're already rebounding.

So I would give you a resounding YES, adding your wife as AU will certainly help, and she should then be able to get her own accts.  And my DH wasn't even on mine for 6 months....as I said I just added him in November or so and he had these scores in April (may have had them sooner but we didnt check).