How does new authorized user report on credit report by bank

[Anonymous]

Hello all,

I searched amongst the forums and I could not find a post directly answering my question, at least one that details my specific question. I apologize if this has already been answered somewhere.

Details: Looking into adding an authorized user to some of my well established cards to help boost CL, 0% utilization, and history. The largest factor is history transferring to the AU. For example, will the 10 years of history show on the AU credit report or will it start fresh like a new card would under their name? Cards available to add to AU are Bank of America, Wells Fargo, Citi Bank, American Express, and Chase. I understand each bank may report differently for AU, hence the specific question.

The goal here is to boost history for the AU without the appearance of a brand new credit card for AAoA. Thank you in advance for the answers!

[FinStar]

Of the lenders you shared, only AmEx would report the account as a brand new tradeline. All the others can backdate.

Note, while this can help the AU with an artificial bump on score and history over time, keep in mind that some lenders can exclude AU accounts from some algorithms given the "piggyback" nature of the profile.

[grower1]

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@FinStar wrote:
Of the lenders you shared, only AmEx would report the account as a brand new tradeline. All the others can backdate.

Note, while this can help the AU with an artificial bump on score and history over time, keep in mind that some lenders can exclude AU accounts from some algorithms given the "piggyback" nature of the profile.

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@FinStar 

Do you know if Capitol One will back date? Chase and Capitol One are my oldest tradelines and I would like to add my son as he has no credit history. Thanks in advance!

[CH-7-Mission-Accomplished]

I know Capital One will use the original date the account was opened.   I have a few AU accounts from my ex, my parents and a close friend.   All report the date the account was originally opened.

Also, there is a lot of misinformation that the new A/U inherits the old history of the account -- like if there was ever a late payment.   The payment record starts from when the A/U was added, which is a good thing.   So if mom missed a payment two years ago, it will not hurt the A/U.

I think most lenders use the original opening date of the account (aside from AMEX).   That has been my experience but there may be exceptions.

One thing to note is that adding an AU does not necessarily show up on all three bureaus.   I forget now how it worked, but I was added to some very old BofA accounts and only certain credit bureaus picked it up.    One clue is if they ask for the SS number of the new AU.   That allows for a match.   But if you have different addresses and different last names, it may or may not be picked up by all three.   Still it's better if one or two pick it up than none.

Good for you for helping a family member, but my personal opinion is that maybe one A/U account is okay.  If you just "give" a kid a 750 FICO score, I guarantee you most of them are going to totally mess it up, get huge credit limits, and then spend seven years in credit hell -- far delaying their chance to buy a house when they want to.   Please let your kids earn their credit rating.  A little boost is good but not too much.   This is just my humble opinion.   Take it as you like it.

[calyx]

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@CH-7-Mission-Accomplished wrote:

I know Capital One will use the original date the account was opened.   I have a few AU accounts from my ex, my parents and a close friend.   All report the date the account was originally opened.

Also, there is a lot of misinformation that the new A/U inherits the old history of the account -- like if there was ever a late payment.   The payment record starts from when the A/U was added, which is a good thing.   So if mom missed a payment two years ago, it will not hurt the A/U.

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I can't speak with regards to all lenders - but I'm an AU on an older Chase, and I have the entire payment history & utilization there when I check my credit reports.