**URGENT** FICO '08 CLARIFICATION NEEDED - RE: Authorized User status on bankruptcy account **

[Anonymous]

This is somewhat involved. So, here goes:

In '98, when I was under the age of 13, I was added as an authorized user on a credit card account. I do not know why this was done, as memory escapes me, but I do know that it was done. I am not aware, if my being added to the account involved a SS#, at the time. However, I believe this may be a possibility, but once again, I am not sure either way.

Clearly, this had a positive affect on my credit score, as the first time I applied for a loan/opened an account, years later, I had a "soft" score of 699. Clearly, the fact that I had an account open for so many years that was in good standing affected my score positively. I also, obviously, had nothing else open, during this time, and therefore, I was left with a good, yet soft, rating.

Fast forward to spring of this year, 2008:

I still only had the one account open in my name that I applied for in the paragraph noted above. However, I was still listed as an authorized user on the credit card account from '98. For reasons that are too numerous to detail, the owner of the card made the guided decision from an advisor to stop making payments on the card, in prepartion for a bankruptcy filing.

Before the payments stopped, being aware of this whole chain of events that was about to occur, I was removed as an authorized user. In the months that followed, payments ceased on that credit card account.

Now, to be frank with you - the nameless, faceless group that is a forum audience - I am terrified, at this point. I mean, I am TRULY SCARED. I am in my very early 20s, and I realize the very real importance of the holy grail that is the credit score, which I know is essential to one's financial makeup.

I am the first to admit that my knowledge of the FICO world doesn't go well beyond what little knowledge I gathered in passing over the years, which is just enough to get by on.

With that being said, from my limited knowledge, I am aware that the following items may or may not apply:

1) FICO '08 - Possibly my salvation? I've read that this means, in theory, that scores are no longer positively affected by authorized user accounts, but I have yet to read that they are no longer negatively affected, as well. I'd rather not jump to that conclusion, as wonderful as it sounds to me right now. I'm reading conflicting news stories ranging from, "It has officially been rolled out to all 3 major scoring companies" to "FICO '08 hasn't been initiated yet, and even if it does, it won't change the authorized user status as long as you have the same address as the original account holder". (For everyone to make a quick mental note, I did and still do share the same address as the account holder, and we are family members - not married.)

2) CREDIT SCORE WILL DROP BECAUSE OLDEST ACCOUNT IS BEING CLOSED - I have read reports that when the account you are no longer an authorized user on was your oldest reported account, which mine was as it outdates the only other account (loan) I have by 8 years, your credit report will drop dramatically. The only possible light I can see with this is if the FICO '08 program has actually been initiated, whereas authorized users would not be affected negatively nor positively.

2a) CREDIT SCORE WILL DROP BECAUSE ACCOUNT IS SEVERELY DELIQUENT - Playing devil's advocate and assuming FICO '08 isn't actually active, obviously having an account that is EXTREMELY deliquent will affect my credit score. This much I do know.

Basically to sum things up, here are a couple of extra points, followed by my main concerns and questions:

* Over the 10 years that the credit card account was open and I was an authorized user, I used my credit card with my name on it only twice, both times for gas purchases under $50.

* I am not looking for messages regarding blame or bashing, as I hold no ill will towards anyone.

* I was never responsible for paying nor purchasing on this account, barring the two purchases mentioned above.

* As of 11/3/08, my credit score reflects reporting up to 3/2008 for the credit card account, which was before the proverbial crap hit the fan, and thus, I am afraid that when my report says there are 0 negative adversely affecting accounts on your report, it may be incorrect.

Here go the questions:

1) Is FICO '08 actually currently being utilized, and if so, to what extent?

2) How will my credit score be affected, if at all, starting with my next report update, by the above mentioned situation?

3) If my credit score is to be negatively affected, do I have any recourse, whether it be that I was a minor at the time I was added and a "ghost" card holder, etc.?

4) Is it possible that the credit card company would come after me for reimbursement while the bankruptcy proceedings are still ongoing and incomplete?

Basically, if bad news is going to hit me, once my report gets updated, I'd like to know now and be able to prepare myself, if only mentally, for it. Otherwise, of course, wonderful, light happy news would be GREATLY APPRECIATED!

I apologize for the webster's edition posting, but can you tell I'm nervous? Well, scratch that, I am scared to the point of being physically ill.

Please, reply, with any help at all, information, enlightenment, anything!

Thanks - Marie

Message Edited by ag1032 on 11-02-2008 11:31 PM

[Anonymous]

Dispute the tradeline 'not mine' with the CRA's.

While you may lose points for the history, the C/O account will negatively impact your credit. It's not worth having a tradeline like this, no matter what the age. If you are in your early 20's, creditor's will understand a lack of history. Piggy backing may be attractive to some if the account is in good standing and has low utilization.

No you are not responsible for paying this back, as an AU.

[Anonymous]

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ag1032 wrote:

* As of 11/3/08, my credit score reflects reporting up to 3/2008 for the credit card account, which was before the proverbial crap hit the fan, and thus, I am afraid that when my report says there are 0 negative adversely affecting accounts on your report, it may be incorrect.

Here go the questions:

1) Is FICO '08 actually currently being utilized, and if so, to what extent?

 It was announced that FICO 08 will treat AU accounts the same as they always have. The change they expected will not take place. I believe one CRA(EX) is making FICO 08 available. Here is a thread from the Credit in the News forum that talks about it. There may be other threads with more updated information over there.

2) How will my credit score be affected, if at all, starting with my next report update, by the above mentioned situation?

From what you've said, I am taking it that you haven't updated your report since you were removed as AU? If this is the case you may find:

1) that they have already removed the account from your report.

2) that they simply stopped reporting monthly on your report when you were removed.

3) that you have an AU account that is reporting lates each month or a CO, etc.

If #1, great, less you have to deal with. If #2, that is okay to. As long as they are not updating every month and the account isn't showing any negatives, I'd leave it be. If #3, that isn't too good, get rid of it.

3) If my credit score is to be negatively affected, do I have any recourse, whether it be that I was a minor at the time I was added and a "ghost" card holder, etc.?

 If you've been removed as AU, you can dispute the account as not mine and have it removed from your CR, as another poster mentioned.

4) Is it possible that the credit card company would come after me for reimbursement while the bankruptcy proceedings are still ongoing and incomplete?

Nope, as mentioned, you are not responsible for the debt.

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[Anonymous]

All right, so, I was unbelievably scared, but I just pulled my credit report, and luckily, I have a score in the upper 700s, which means that in the past two years my credit score has gone up about 75 points (but this could be too could to be true). As you will read below, as luck would have it, I have a little bit of each of the 3 scenarios that sidewinder mentioned going on with each of the credit agencies.

Here are the details:

From what I can gather (please, corrrect me, if I'm wrong), Equifax is clearly reporting my situation in the best light. It is showing the credit card account that I was an authorized user on as an account on my history, but it is showing a $0 balance, which causes my overall debt to credit ratio to be 19%.

Next up, Experian isn't actually reporting the account at all, and therefore, I can only assume my credit history with them is the shortest, which would reflect in a (possibly?) lower credit score. Also, my debt to credit ratio is most accurately reflected as 57% for the auto loan, good bad or ugly it's what actually IS.

To the worst of the bunch, which may have some silver lining - TransUnion.

All right, they are showing the full balance on the account, which is putting my debt to credit ratio at 61%. However, they are also recognizing the account, which I can only assume would give me a positive score with their agency. Onto some good news, the balance that is shown is the EXACT balance of the very last statement I was on before being removed as an authorized user, back in the early spring. So, I can only assume it has not continuously been reported since that time.

Can anyone, please, unjumble this for me? I have more questions now, but I am SO RELIEVED. The stress I put on myself, through the whole night yesterday and today, as well as the rollercoaster of emotions I put myself on, has left me feeling like I just got hit by a bus.

This is what I'm still wondering:

1) Do I try to correct the balance on the TransUnion report, and how do I do so without removing the credit history completely? Is it worth it?

2) Should I pull TransUnion and Experian scores to cross check?

3) Is Experian not showing the account because of the FICO '08 guidelines?

4) Obviously, there's no way of knowing, when and if I EVER decide to get another loan/account/etc., which credit agency an entity will use to pull a credit score, but what I'm wondering is do the vast majority of people/businesses/financial companies pull one companies score more than another?

5) Do they pull all three and average?

6) Am I out of luck, assuming they pull TransUnion or Experian?

Any other observations or input would be GREATLY APPRECIATED! THANK YOU, THANK YOU, THANK YOU, FROM THE BOTTOM OF MY HEART!

Message Edited by ag1032 on 11-03-2008 08:46 PM

[Anonymous]

This looks like a screen shot summary from credit check total or some other Experian based tri-merge.

This doesn't show if the account is reporting in a negative manner. The high utility is certainly not helping you on TU.

Also, if these are the scores you are going by, they are worthless. Lender's do not use scores from Experian credit monitoring services. They usually use FICO scores, which you can get here.

If you dispute it with TU you may either risk losing the entire tradeline or they can update the balance and add the Charge Off status to it (if it's not already listed that way)

For us to know more, post how the tradeline is listed on each bureau. You should get copies of your reports from each of the CRA's directly and not dispute using a tri-merged report such as this. They are not always accurate.

[Anonymous]

The tradeline is listed as current, with never having posted or shown a late, in the entire history for the revolving account from all 3 CRA's.

I pulled my scores from each CRA and they are as follows:

Equifax 772

(According to their 300-850 scale, that would place my score on a scale of 100 at 90.82%)

Transunion 701

(According to their 300-850 scale, that would place my score on a scale of 100 at 82.47%)

Experian 712

(According to their 330-830 scale, that would place my score on a scale of 100 at 85.78%)

With this knowledge, and the graphic from my last post, what do you suggest I do or not do, as far as disputing? I have no late or negatives on any of my reports. The only slight "issue" I can foresee is the revolving account, which stopped being reported on TransUnion as of the date I was removed as an authorized user. Any help, once again, would be greatly appreciated.

I have no credit card accounts, but I may open one, if it is suggested to help my credit. Other than that, I can only assume that continuing to pay my car payments on time would help over the next year or two?

Just to reiterate, I am under the age of 22, and with this knowledge, where do the above scores place, as far as on a national scale? I would just like to know, if I am I the right track, and what can be done, in the future, in order to bring my score up across the board in the high 700s - 800s.

What other suggestions are there, as far as helping to keep my scores on a good trend? THANK YOU AGAIN!!!

[CreditAble]

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@Anonymous wrote:

This is what I'm still wondering:

1) Do I try to correct the balance on the TransUnion report, and how do I do so without removing the credit history completely? Is it worth it?

2) Should I pull TransUnion and Experian scores to cross check?

3) Is Experian not showing the account because of the FICO '08 guidelines?

4) Obviously, there's no way of knowing, when and if I EVER decide to get another loan/account/etc., which credit agency an entity will use to pull a credit score, but what I'm wondering is do the vast majority of people/businesses/financial companies pull one companies score more than another?

5) Do they pull all three and average?

6) Am I out of luck, assuming they pull TransUnion or Experian?

Any other observations or input would be GREATLY APPRECIATED! THANK YOU, THANK YOU, THANK YOU, FROM THE BOTTOM OF MY HEART!

---

#1. I wouldn't try to "correct" anything right now. I would wait to see what happens over the next few months.

#2. Yes, you can pull your reports for TU and Experian from MyFico. 

#3. Fico '08 is irrelevant especially in your situation.

#4. You can try to obtain credit from companies that tend to use certain credit bureaus.

#5. Very few bureaus pull all three. 

#6. You are not out of luck. First determine what your FICO scores are for TU and Experian.

Further Observations, Input and Personal Opinions:

 I "observe"    the need to obtain a new credit card as soon as possible , in case your AU accounts either are removed or must be disputed off as the result of a future negative status that might be updated.

 First post your FICO scores and others will help with specific advice. Others may or may not agree with applying for a new card but you will get plenty of good advice. 

 Don't count  Experian out until you get your real scores. You might have a fairly decent "Fragile A" score at Experian. Furthermore you have no outstanding revolving balances on your Experian report. You might be able to get prime cards who pull Experian. It depends upon your actual FICO Score. 

 Experian is also your most accurate credit file. Updates that might bite you later shouldn't happen with Experian.

 It might be a good to nail an Eq pulling credit card ASAP.

...... Pull the FICO scores first however.

Message Edited by CreditAble on 11-04-2008 05:28 PM