benefits of being an 'authorized user'???

[ellielynn]

I just received myfico score, and as i was looking through my history of inquiries...I found one that has a balance of $4K, with a limit of $45K from CitiFlex...and opened since 1995 with zero derogatory marks. I suddenly realized that my baby daddy gave me a card a while back that ive never used. So...my question is, Could this benefit me? Would it help me get a credit card solely under my name? With potentially a nice credit amount? Ive applied and qualified to a couple of cards in the last 2 months with the total limit of about $1K.....my balance on those is about $400. Im trying to restore my credit and was suggested to apply for at least one more card. My score is 664

[pizzadude]

In short ~ yes it can help. FICO scoring includes authorized user accounts, so it can boost your FICO score. However each lender will decide how to factor in this account when granting you credit. Some may include it, others may not.
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[takeshi74]

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@ellielynn wrote:

I suddenly realized that my baby daddy gave me a card a while back that ive never used. So...my question is, Could this benefit me?

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It could.  It could also hurt.  It really depends on how that card account is managed.  You really haven't provided enough information to answer your question.  If you have a report look at the age of the account, payment record and utilization.  The same factors that affect credit in general apply.  If the account is older than your other accounts it will help AAoA.  If it's newer than your other accounts it won't help AAoA.  If utilization is low it will help.  If utilization is high it will not help.  If the payment history is clean it will help.  If there's a history of missed and/or late payments it will not help.  And so on and so on.

Being an AU doesn't really mean anything in and of itself.

[RobertEG]

While having an account of another report to your credit file is scored by FICO the same as if it were your own account, there are still possible downsides, even if the account helps your score.

If a prospective creditor is using only your FICO score as their decision-maker, it of course would be all gravy

That is the case with many lower-limit CCs and small loans.

However, as the potential credit limit or principal amount of credit sought rises, creditors are more apt to do a manual review of your CR in addition to simple reliance on your three-digit FICO score.  Upon seeing that your score is based at least in part upon credit history that is not yours, they may wish to know what your score would be based only on your own history.  They cannot do that, as they have no access to a FICO scoring algorithm that permits them to "back out" selected information.

They might then question the entire value of your score as an indicator of your own, personal repayment risk.

AUs are a good rebuilding tool, but can create potential review problems as you seek higher and better credit.

Thus, in my opinion, it depends upon your circumstances........

[ellielynn]

Thnx for the feedback.

The account shows its been opened since 1995~Therefore also showing that i have 18 years and one month of credit history. When in actuality, i dont have Half of that! And his history of payments is in perfect standing....Never late, never over. He keeps it low, and for the most part tries to pay the full balance. The spending limit is $45K, and balance is $4,000.

I only show 2 inquiries, yet show that my amount of credit is 'not good' In the last 2 months i got a Best Buy for $750. and a Walmart for $300. Yesterday i applied online for a Simmons First Visa. Tempted in applying for a Citi card in hopes of them taking that credit line into consideration and get a nice credit limit.

So~Does 'Not good' mean i dont have enough credit cards, or that i have too many? Anyone?