bettercredit wrote:
I read on one of the postings here that if someone with "great" credit adds me as an "authorized user" my score will go up.
Is this a guarantee? Will it add to my credit report and then come across as too many open accounts? If the credit card holder defaults or goes into collections do I go with them?
What's considered a good credit school? 680 or above?
There is no guarantee. Some lenders report AUs. Some do not.
If someone adds you to their CC, and that lender reports to the CRAs, then yes you will reap the benefit of that card holders TL.
If the card holder defaults, then yes you're CRs will likely reflect that adverse activity as well. However, AU accounts are easy to dispute off your CRs if the TL turns sour. FCRA, and several lawsuits against the credit industry (like Johnson v. MBNA), don't permit the negatives but allow the positives.
But the benefit is going away as Fair Isaac is rolling out an update to the scoring model that will not count AU accounts.
If you are looking to improve your scores, you do have a small window to act. If your spouse, or someone you trust and someone who trusts you, were to add you today, you would likely reap the benefit within the next 30 days. With that benefit in hand of a better FICO score, you could then apply for a CC on your own.
If this is a spouse's CC, then I suggest ya go ahead and see about converting the account to a joint account. Have your spouse call the CCC and ask. Just make sure they are going to keep the account open and simply add you. You don't want them closing the account and reopening a new one, that would likely hurt your spouses credit short term, at least a little.
The term good score is indeed a very nebulous term. Good for what and to whom?
If you've just come out of a BK, then 680 would be a world class score, and perhaps an impossible feat. 2-3 years outta BK, possibly doable and very good indeed.
If you have a number of collections and charge offs, paid or not, 680 is a great score.
If you're applying for a home loan, while 680 is good, 720 and over is the best for getting you the best terms on the loan.
If you have absolutely no adverse reporting at all on any of your CRs, established credit, no inquires, no recently opened accounts, all TLs well established, a good mix of revolving and installment debt, 1-9 percent util on your CCs, then I would be wondering why my score was such a low 680.
Answer#2 - current thought seems to be that all AUs will be ignored, meaning people who have been using them a great deal; could face a VERY significant score drop. Thise MOST likey to be badly hit are those with lousy credit who have been artificially inflating their scores, and spouses (predominantly women) who have been using their spouse's credit. In the case of husband and wife, it is easy to become jointly liable, so both will get the credit