AU Weight on Score

[Anonymous]

Good afternoon friends,

I've been recovering my credit recently and have just opened several new cards to build good history with and PIF each month.

C1 QS1 - $1,000 cl

Best Buy Visa - $1,000 cl

Walmart - $800 cl

Home Depot - $500 cl

Total CL is $3,700 - pretty sad, but a lot better than where I started.

I also have an older CreditOne card with a $400 limit that i've been using and paying off regugarly - this card will likely go on hold for awhile, but don't want to close yet as it's my oldest card.

My fiancee recently opened a CapitalOne QuickSilver card and was instantly approved for $10,000 CL

My questions are:

• Will it help my credit to be added as an authorized user on that card?
• It's her only card, will it hurt her credit to add me with my lower score?
• Will the credit limit on that card be counted in my utalization only as an AU? This would help a lot in keeping my utalization lower.

Thanks! I've learned so much from this form already!

[Anonymous]

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@Anonymous wrote:

Good afternoon friends,

I've been recovering my credit recently and have just opened several new cards to build good history with and PIF each month.

C1 QS1 - $1,000 cl

Best Buy Visa - $1,000 cl

Walmart - $800 cl

Home Depot - $500 cl

Total CL is $3,700 - pretty sad, but a lot better than where I started.

I also have an older CreditOne card with a $400 limit that i've been using and paying off regugarly - this card will likely go on hold for awhile, but don't want to close yet as it's my oldest card.

My fiancee recently opened a CapitalOne QuickSilver card and was instantly approved for $10,000 CL

My questions are:

• Will it help my credit to be added as an authorized user on that card?
• As far as the debt/ratio ...yes your score could benefit...again assuming she keeps the debt load low, it benefits you both.
• It's her only card, will it hurt her credit to add me with my lower score?
• No having you listed as a AU does basically NOTHING 'to' her account...it just allows you to 'piggy-back' whatever she does on that account.
• Since this is for score manipulation only...there isn't even a need to give you a crad on that account. All you're looking for is to have to FAT 10k
• show up as 'part' of your total CL, again 'just for the pictures', baby
• Will the credit limit on that card be counted in my utalization only as an AU? This would help a lot in keeping my utalization lower.
• As mentioned above that's the ONLY reason to do it.....simply to add that 10G's to help massage your ratios.
• Just keep her ratio low and it works out killer for you.
• FYI....IMO your girl should add at least 1 more account within 4 months and I'd like 2 more within 6 to max out her score....while allowing said HPs to
• age out of importance within striking distance of each other ( she waits 6 , then another it'll take that much longer for her cards, thus profile to grow in age and depth.
• Best to group them together and raise 'em like twins ...that they graduate and leave the house that the same time

Jokes aside the model wants to see 3 revolvers....have her check what she pre-quals for ..remember it may take a moment for the Cap-1 to show up as a TL on her account but again IMO ....since she has a nice SL with the QS...she should parlay that into  2 solid vendor relationship with 2 good tier lenders/banks that may last a lifetime.

*Also, for you...start asking about PC-ing that QS1 to a QS as soon as next week and ask plenty and often, sometimes they swap it right away others of us it took them a year but it will flip to the no AF version sooner or later.

Last thing...if you didn't know, I would NOT have your girl app for another Cap-1 card as the #2 or #3

as they pull 3 HP's...that's 3 that could be used elsewhere for 3 different tries....the sp CLI via luv button = Yes

blowing 3 more Hp's for a 2nd Cap-1 = NO

Good Luck, to you both

Thanks! I've learned so much from this form already!

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[CreditDunce]

If your util is high, the AU account could help your score.  However, it isn't hard to pre-pay your CC bills before the statement cuts to maximize your score when needed.  The main reason I would consider adding the AU account would be as a lever to get higher limits.  Not all CCC's consider AU accounts (e.g. Chase's CAR score ignore AU accounts).   But it will work for some CCCs.  The negative of adding the AU account is since the account is new, it will hurt your AAoA.

If your or your GF do not have any installment loans, be sure to check out CGiD's thread on the SSL method to a SSL

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Adding-an-installment-loan-the-Share-Secu...

It can boost your score in the right situation.  You will also want to have some experience with installment loans well before you start mortgage shopping (if that is in your future).

[Anonymous]

 1) I agree and LOVE the SSPL...however it depends on what her immediate plans are and her ability or desire to stash cash to pad the credit score.

If money is tight and she isn't looking o car/house shop within the next 24 months...i wouldn't strain nver but if possible it's great.

An alternative offred by some CUs is call a 'credit builder loan' where they lend you the funds and immediately slap it in an account for you tend you pay down (basically forced savings) and get payment counts as 'savings' but is reported as a payment on the loan thus adding an installer account to provide mix to her profile and YOURS too if you don't have an installer...you may both do it as a joint account killing 2 birds with one stone.

Again if you don't have the funds find a crediy builder if you have the dough even easier and you can both benefit, if you make it a joint deal.

2) I also agree 'mostly' with the AU accounts can and will be discounted with regard to manual UW

However many mid level 60 second decision cards weren't manually reviewed, so if the AU accounts does it's job of adding the 'fake' bounce

that garners an approval...where one can build from there ....mission accomplished.

IMO  the primary goal/benefit of the AU piggy-back is to gain arbitary points from the DUMB computer algorithm....any human or manual UW is going to discount

15 years of payment histort attributted to your 19 y.o. daugther b/c some schmuck added her to the Macy's card when she was 12 ...however the algorithm...just cruches numbers and data and spits out digits PERIOD...

This is why we se 'weak' 705 credit scores walking thinking they have GREAT credit as if their rolling out with a tier 1 auto loan...yeah, right!

Now that, kid would be approved for a CC via automated 60 second yes/no type deals ...the % rate and CL may adjust based upon the 'thiness of the file

but again if the goal is to get a few approvals in one's name so they can start growing a file of their own...the AU did it's job.

As far as forcing CL levers IMO overrated for thin files....just as I mentioned the quick auto UW will approve but there are many times secondary levels of UW

even for auto to gauge how much a lender is comfortable with no matter what another lender gave.

NFCU and PenFed are great examples ...they may go buck wild limit wise then Discover says here your $1000...not giving a ish that Navy just blow you up with 20k

we sdee this all day long the only thing that begins to change it is thickness and age....ppl many times TRY this with pumping a big deposit on a secured card...i tell ppl save your money...

Your better off spreading that $3k across 3 accounts and add thickness and extra TLs reporting then trying to outsmart the system with one fat 3k card

Bottom line

3  ($1k) accounts x's 6 months = 18/18 reported on-time payments is a better file than

1  ($3k) accounts x's 6 months = 6/6  reported on-time payments

of the 2 the profile with the 3 accounts IMO is more likely to getthe step to 5-10k CL due to being able to build a thicker

more vetted file han one account, no matter the size can't do....b/c 1 year is only 12/12 no matter how you slice it....3 cards would have built a 36/36

reputation and would jump ahead in general

[Anonymous]

Thanks all.

I do not have high util currently - of my $3,700 total credit line only 2% is utilized right now.

Neither of us plan to ever carry a balance and our finances are already mostly combined already.

Her scores range in the 760-780 range where mine are in the 640 range.

She does not have any installement loans - i've financed several vehicles.

I had some issues with student loans a few years ago, current on everything for a few years and anxiously waiting on those to eventually roll off.

My primary goal would just be to be able to get CLI on my Capital One QS1 and get it coverted to a standard QuickSilver eventually - i thought maybe padding my file with her $10,000 limit might help.

[Anonymous]

Other more knowledgeable posters can correct me if I am wrong, but AU has no weight on FICO 8 scores, and FICO 8 is what most credit card companies use.

It has a big weight when you look at Credit Karma, but they use Vantage 3.0.

My wife is AU on 8 of my cards, her FICO 8 score is nearly 100 points lower than her Vantage 3.00 score, though for me I am around 800 on all the models i have seen.  I had put her as AU thinking it would help, but it appears not to help, though it certainly doesn't hurt (assuming the primary account is clean and carries no balance).

What seem to help more in getting a credit card from someone like Chase Freedom or BOA is to have a checking account with them, that seems to help a lot.

Does anyone know of bank credit cards that DON"T use FICO 8?

[CreditDunce]

FICO 8 seems to be hit or miss if the count the AU account.  The old FICO scores used by mortgages will count AU accounts if they are allowed on your credit report.

Chase used to offer special consideration for people with more than 10k in Chase accounts.  For example, you didn't need a credit score.   I have read they have stopped this.  Wells Fargo normally requires a banking relationship before approving CC.  US Bank is another relationship bank that likes you to have a checking account with them.  But it is not required if you are in their area.  BoA doesn't require an relationship for a CC, but their Preferred Rewards program can be very lucrative if you do.

Off the top of my head:

Alliant EQ NextGen3, possibly TU

Cap1 - EQ-04 - Will pull all three. Also known for trying different models

Chase - CARS - Internal Score - I believe it ignores store cards and AU accounts.  Not uncommon for them to pull two CRAs.

DCU EQ-04

Nasa FCU EX-98

NFCU EQ-04 (?)

PenFed EQ NextGen3

PSECU EX-98

US Bank TU-04 BE

Wells Fargo EX-98 BE

Sorry, I can't think of many true big banks that haven't migrated to FICO 08.  I left off the FICO 08 BE cards (i.e. CITI, FNBO). Normal YMMV warning, CCC can pull any CRA they like.

[RobertEG]

If an AU is added that effects your score, then you score is, by definition, no longer representative of your own personal risk analysis.

You dont technically improve "your score" by adding an AU, you improve "the score" that is generated by the algorithm.

If a creditor does a manual review and sees the presence of an AU, they then know that the score they receive is not based only on your own history.

They cannot back out the effect of the AU and produce a score that represents only your own risk analysis.

If you are apping for credit that is likely to involce a manual review, then presence of an AU, regardless of its score impact, may be undesirable.

AUs are good for rebuilding, where creditors may not do a detailed manual review, but can be a detrrimnet as you move up the credit ladder.

[Anonymous]

i'm an AU on my mom's card thats about 12 yrs old, but it has a 40% util balance on it. my cards are all less than 5% util, both on creditkarma and myfico, it shows my utilization in the 40's and scores are within about 2 pts from CK to myfico. in my case, the AU is definitely affecting me