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Question about AU

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Question about AU

I’m new to this site, so I apologize if I’m posting this in the wrong section. My credit score is around 580 right now. I have 2 small medial collections (from 2013 and 2014). One is around $213 and the other is around $1200. I have two new store CC (small limits only $300 each). On time payments. My credit history is a little over a year old, according to CK. My dad is a member of PenFed and is going to add me as an AU to both cards. They used to not report AU, but I called and as of Dec 31. They are going to start to report AUs.Both of his PenFed cc’s have a high limit, good age, and pays them down to zero a couple times a month. He’s never paid interest on any of his cards. His credit score is around 820. I’m looking to apply for Care Credit in a couple of months. My questions are, will my credit score increase because I’m being added as a AU? Also, will Care Credit or whoever I apply for be able to see that I’m an AU and it’s not technically my credit history. Thanks!
Message 1 of 3
Legendary Contributor

Re: Question about AU

Each account has an ECOA Code which designates the account type as either sole, joint, maker (i.e., co-signor), or authorized user.

Yes,  a party reviewing your credit report can tell if there are any AU accounts being included.


AU accounts are not free lunch.

If an AU account is included in your scoring, yes, you can get a score boost, but the score is NOT then representative of your own personal credit risk.  Lendors are aware of that fact, and it may effect their view of your credit score in their determination process.


Typically, adding an AU account that benefits your scoring generally also benefit approval chances if the amount of the new credit is relatively low.  Many creditors offering lower amounts of credit limit dont invest in a more detailed and expensive manual review of your entire credit report, and thus are not aware whether the score they are considering is based in part on the credit history of another.

Thus, adding an AU to your report/scoring is most often beneficial when you are building or rebuilding.


However, as you move up the credit ladder and seek higher levels of credit or credit limits, the chance of lendor manual review of your entire credit report increases, and they will likely see that one or more accounts are AU's, and may choose to place less reliance on a score they know is not representative of only your own personal credit risk.  It is common, for example, for some mortgage lendors to require the removal of AUs as part of their underwriting process so that they can get a "real" score that assesses your true repayment risk.


I would generally go for the AU, but you may wish to later remove it when your score begins to approach 700'ish, and/or you are seeking a high principal chunk of credit, such as a mortgage or auto loan.

Message 2 of 3
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Re: Question about AU

So if I am applying for a credit card that gives an instant approval on their website in seconds, are they looking at if I am an AU on credit cards or not?
Message 3 of 3
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