Authorized User tactic? Anyone have any input on this?

[Anonymous]

Here is an article I found.  Has anyone tried this and what results have you seen?  See below

I hope you find this information helpful.  Please let me know if there is
anything else I can help you with.

There?s a fantastic technique to assist consumers that have a short credit
history or whose score is low because of the lack of revolving credit limit.
Becoming an authorized user, in other words, becoming a card holder on someone
else?s positive credit card account will in turn allow that positive credit to
report on your credit bureau report as well as the initial card holder account.
For example, if you have an associate who has perfect credit with a credit card
that is in perfect standing, and he/she calls the credit card company and adds
you as an authorized user on the card, that positive credit limit and credit
history should report on your credit bureau report.

So if you personally have zero credit history and your associate?s card was
opened in 1996, you will automatically have ten years of positive credit history
added to your credit bureau report. Please note that this method also requires
caution on your side. While you?re not liable for the charges, or repaying the
debt, if your associate fails to pay the card on time, or if he maxes out the
card, this will negatively affect your credit score as well.

To positively influence your credit score, the account(s) you add must have
excellent credit history, they must have very low balances (less than 20% of the
credit limit), and, ideally, they should have a positive credit history of at
least three years.

Disclaimer: Please note that this method also requires caution on your side.
While you are not liable for the charges, or repaying the debt, if your
associate fails to pay the card on time, or if your associate maxes out the
card, this may negatively affect your credit score as well. If this occurs, you
always have the right to be removed as an authorized user on your associate?s
card.

[Anonymous]

It's my understanding that by the end of the year the FICO scoring model will be revised to NOT INCLUDE AUs in the calculation of your scores.

Apparently people have been using this method as a loop hole to temporarily inflate their scores when applying for mortgages and other big financing decisions. I guess in the eyes of FICO, the inflated score is not a fair benchmark regarding your actual ability to pay your debts.

Yet another instance of a few bad apples ruining it for everyone else.

I will say however that by girlfriend pulled her scores last week and they average to 730, in large part to the fact that she is an AU on about $50,000 of her mother's cards.

David

[Anonymous]

Being an authorized user is a great way to build some history for now.  As of Sept., the AU status will no longer be used in calculating credit score.  Many people have seen score improvements as a result of being an AU.  Unfortunately, you should cash in on that now since soon it will no longer matter.

Message Edited by princessofpink on 06-14-2007 10:22 AM

[Anonymous]

Ugh... see what happens when you drop something on your keyboard while typing.

Message Edited by princessofpink on 06-14-2007 10:22 AM