Authorized User Question

[Anonymous]

Hello!

I am being added as an authorized user to a credit card with a very large limit $10,000,  but its is a new card. Will this have any affect on my credit score since it's a new card? Or does the account have to be older?

[simplynoir]

It depends on what your profile looks like at the moment but for the time being there are several ways this could affect your score. Since it is a new account (assuming you mean primary just recently applied for card) your AAoA will take a hit, how big depends on the age of your other accounts and how many of them you have. And another is utilization since it's a fairly sized limit being added if you have high utilization this could help bring it down some; if you have little usage then it probably won't help much.

[Anonymous]

@simplynior,

I have 1 car loan ($24,00) and 2 Credit cards Cap 1 -$750 and $300.  No balance  My score is 603 right now  

[simplynoir]

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@Anonymous wrote:

@simplynior,

I have 1 car loan ($24,00) and 2 Credit cards Cap 1 -$750 and $300.  No balance  My score is 603 right now  

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It'll help if only because for ideal FICO scoring purposes it's good to have 3 open lines of credit with two cards reporting $0 balances and the 3rd card reporting <9% to maximize your scores. I'm guessing they're fairly new those two CapOne cards so the new $10k CL showing on the AU card should be good for you as well. Pretty nice overall if you're starting off and/or rebuilding.

[Anonymous]

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@Anonymous wrote:

@simplynior,

I have 1 car loan ($24,00) and 2 Credit cards Cap 1 -$750 and $300.  No balance  My score is 603 right now  

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You need one credit card to report a small balance.  Otherwise FICO will give you a substantial penalty (20 points or so).

I am assuming that the "$750 and $300" figures you give are credit limits, right?

Adding the very young AU account will probably not help your score and may harm it, depending on what your current AAoA is (Average Age of Accounts).  SimplyNoir is right that having a third credit card could help you, but you could do that alone by simply adding a third card of your own.  The 10k credit limit doesn't matter -- FICO doesn't give you any extra scoring points for having a big CL.  All FICO cares about in that respect is your utilization, and yours is already extremely low.

Is there a spouse or roommate or parent who has a card that is old, clean, and with a very low or $0 balance?  That's the kind of card to which you would want to be added to as an AU.

[Anonymous]

Yes my limits are $750 and $300.

My average age of accounts (accoring to Credit Karma is 7 months) 

[Anonymous]

Karma is AAoA calculator is reliable only if you have no closed accounts.

[Anonymous]

oh ok!

How do I find out my AAoA

[simplynoir]

Obtain a free credit report from creditscore.com as it uses FICO 08 Experian scoring. That should get you started on what is exactly on your account at the moment.

[Anonymous]

Thnaks simply!!

The report says my AA0A is 5 years, 9 mths so would this new card help??