Does being an authorized user count against your report?

[Varsity_Lu]

So, my wife recently got a new card and added me as an authorized user. When I checked my report a month or two later, it appears that I have opend a new account. My available credit limit is also higher.

Will these things affect me negatively if I were to apply for a new card soon? Do bank differentiate between account owners who actually applied and received a HP vs an authorized user like me on her card?

[FireMedic1]

It will show all the metrics to help your file. Her credit line raised your total CL. There are many banks that ignore the AU account. Still comes down to your scores and any baddies if they exist.

[SouthJamaica]

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@Varsity_Lu wrote:

So, my wife recently got a new card and added me as an authorized user. When I checked my report a month or two later, it appears that I have opend a new account. My available credit limit is also higher.

Will these things affect me negatively if I were to apply for a new card soon? Do bank differentiate between account owners who actually applied and received a HP vs an authorized user like me on her card?

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Authorized user accounts are counted for some scoring metrics and ignored for others. Unfortunately, I can't remember all the details. I just remember that (a) the date the account was opened does count for most lenders, but not for Amex, and (b) the limits and balances do count in assessing utilization percentages.

[Thomas_Thumb]

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@Varsity_Lu wrote:

So, my wife recently got a new card and added me as an authorized user. When I checked my report a month or two later, it appears that I have opend a new account. My available credit limit is also higher.

Will these things affect me negatively if I were to apply for a new card soon? Do bank differentiate between account owners who actually applied and received a HP vs an authorized user like me on her card?

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As an AU, the card's CL will increase your available credit by whatever amount you are authorized to use. However, neither the CL or balance will be included in your aggregate  revolving utilization calculation on Fico 8 and later Fico models. It does factor into AG UT on the older Fico 98 and Fico 04 versions (EX score 2, TU score 4 and EQ score 5) used for mortgages.

Since you are not responsible for the debt, any balance will not affect your DTI. Furthermore, the card won't be included in your number of accounts with balances. To avoid an "all zeros" penalty, you need to report a balance on one of your personal revolving accounts.

Side note: VantageScore is blind and treats AU cards no different than personal cards. A serious flaw with the model - imo.

[Varsity_Lu]

@Thomas_Thumb 

This is probably why the Creditwise score in my Cap One account is so much lower than my FICO score. My wife and I are new to credit cards and we are each AU on each other's cards. Vantage looks at that as a ton of new accounts which lowers my score.