The authorizer user process permits a creditor to report the account of consumer A to the credit file of a consumer B, provided the creditor consents to do so.
The authorized user process does not apply to CRAs reporting information from the file of consumer A to the file of consumer B.
Thus, if a creditor agrees to reporting an AU to the file of consumer B, only their account is reported.
The creditor cannot report the accounts of other creditors, and a CRA does not report information from the file of one consumer to that of another.
As for effect on the credit of the AU, by definition, once a consumer has an AU account added to their credit report, any score generated from that report is no longer representative of their own, individual credit history.
Yes, a consumer can obtain a score increase by adding of a good AU account, but if they then apply for new credit, the prospective creditor can choose, as part of their approval process, to do a more complete manual review of the consumer's credit report.
If they see the presence of an AU account, that informs them that the score they are receiving is not limited to an assessment of only the named consumer's credit history. They can thus choose to discount or disregard the score since it is not an assessment of only that consumer's risk analysis.
AU additions that improve scoring are very useful when building or rebuilding, as the credit being sought is usually at a lower level for which many creditors rely only on a score and dont do a more thorough manual review. They thus are not aware that the score is based in part on the credit history of another.
