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To be added as an authorized user, which of these is more important?

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Anonymous
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To be added as an authorized user, which of these is more important?

Payment history or credit utlization?  My husband has a Best Buy, Home Depot and Capital One credit card he can add me to as an authorized user.  His payment history is spot on, but his credit utilization as of last reporting was:  Home Depot - balance owed 1309.00 of a 3000.00 limit, Best Buy - balance owed 188.00 of 400.00 limit and Capital One - balance owed 749.00 of 1300.00.  

My credit reports currently show one open (secured) Capital One card and one open student loan.  Should I become an authoritzed user on all three of his trade lines for the credit history and good payment history or will it do me more harm because his utilization is so off?  

Thanks!!!!  

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Anonymous
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Re: To be added as an authorized user, which of these is more important?

You don't mention how old each of those three cards is -- nor the age of your oldest account.  That's really important to know in order to advise you.

 

Ideally what you are looking for, in a potential AU situation, is a card which:

    (a) is much older than your oldest account

    (b) has no lates or other derogs

    (c) has a very low utilization

Message 2 of 6
Anonymous
Not applicable

Re: To be added as an authorized user, which of these is more important?

Ahhhh, that would be good to know.  

 

His cards are 6 years, 6 years and 7 years old respectively.  

 

My report shows 1 credit card opened this year (on time payment history) and a 15 year old student loan that is current but shows a few baddies (120 day, etc.).  Everything else is closed (do those count towards credit age?) 

 

Ideally what you are looking for, in a potential AU situation, is a card which:

    (a) is much older than your oldest account (older than my credit card account, but not older than the student loan)

    (b) has no lates or other derogs (check, none)

    (c) has a very low utilization (nope; collectively or seperately, they're not high but they are not very low, as you state)

Message 3 of 6
RobertEG
Legendary Contributor

Re: To be added as an authorized user, which of these is more important?

Payment history derogs are hard to get removed prior to their normal exclusion dates, and usually remain for their full 7'ish years.

However, % util is scored only on the current % util, and not upon prior historical utilizations, to the impact of a high util can be overcome in the next reporting period.

Message 4 of 6
Anonymous
Not applicable

Re: To be added as an authorized user, which of these is more important?

Yes, closed accounts count toward age.  So do accounts with derogs.

 

So the age of your oldest account is the account with the earliest "date opened" even if it is now closed.

 

When were the derogs on your student loan?  The creditor may choose to remove them from your report as a "good will" decision, if he feels like you have been a good scout for a solid 3+ years.  He is not required to do so, but he can choose to do it.  The relevant strategy is something called Good Will Letters.

 

The chief reason one asks to be added as an AU (assuming it is a credit scoring strategy) is because the card is much older and will therefore help you with a factor called Age of Oldest Account. 

 

Getting added on one of those cards you mentioned would still not be a bad idea, since it will give you multiple credit cards on your report, which FICO likes.  If you choose to do that, then you want to see if the card holder would be willing to pay the card to $0 before the statement prints each month.  That way you'll have an extra $0 account, which will be good.  Then you need to work on getting a couple more cards of your own.

Message 5 of 6
jamie123
Valued Contributor

Re: To be added as an authorized user, which of these is more important?

It would be nice to know both your and your husband's scores. You might be able to stand on your own but we don't know that because we don't know your scores.

 

Ask your husband which card he can keep a low balance on and use that card for your AU card. Stress to him the importance to keep that card at a low balance.


Starting Score: EQ 653 6/21/12
Current Score: EQ 817 3/10/20 - EX 820 3/13/20 - TU 825 3/03/20
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