Authorized user question

[Anonymous]

Here is my authorized user question...

Let's say one family members adds another as an AU. Does the person being added get the influence of just the account thy're added on? Or, do they get the influence of the other person's entire credit report?

Here's the reason for asking. If the person adding the other doesn't have perfect credit in every area, but has a credit card account in great standing, then what happens? Would the person being added just get the positive benefit of the account they're added to? Or would they get the effect of any negative information that might be on other accounts?

Thanks

[Anonymous]

Being an authorized user will not have any affect on credit scoring whatsoever. An AU is just sharing the use of a credit card. It used to be back then that an AU could "piggy back" on to a primary account holder and build credit history. However, that is no longer the case anymore. However, if the family member were to be added on as a "Joint Account Holder," that would be a different. As a joint, the person shares all financial responsiblities and debt that is occured on the account. If one person defaults, the other person is still liable to pay. In a joint, both members account information will be reported to the CRA's.

[Anonymous]

Thanks, but my understanding is that Fair Isaac ended up not taking AU scores out of the equation.

Does anyone here have an answer to my question?

Message Edited by ThanksForHelping on 12-02-2008 10:04 AM

[Anonymous]

I would like to know the answer to this also.....I read somewhere online that Fair Issac decided to go ahead with letting users use AU and still be able to reflect on credit report---I think they supposely found a way to keep track of those who are paying others to be added to good accounts.....I would love to know if this is true---

[Anonymous]

I found this

http://www.fairisaac.com/NR/exeres/0DE30FFD-AA2C-4EBF-A558-2387A87215A5,frameless.htm

[Anonymous]

I was added as an authorized user to my girlfriend's card with good utilization a few months ago, but it has never appeared on my credit report. My understanding was that in situations where people were family or lived together, as we do, that it would be included on your report and that they were just weeding out the strangers who were "piggy backing".

If it was changed from authorized to a joint card, would the limit go down? Or would the account have to be reissued? One of the reasons I wanted to be added to this card was to establish length of credit.

[tiger67]

As I understand, AU accounts are still calculated in the FICO score if the account is reported. However, not all CCC's report.

[Anonymous]

The card I'm on is a US Bank NWA Visa. Can you request that they report it?

[laz98]

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@Anonymous wrote:
The card I'm on is a US Bank NWA Visa. Can you request that they report it?

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yes, you can.  doesn't mean they will.

[RobertEG]

First, an AU NEVER gets the benefit of the entire credit file of the authorizer, it is ONLY for that singlle account.

Second, while FairIsaac has released a FICO scoring revision called "FICO 08" that does remove the scoring of AU accounts into the AUs scoring, I have seen nothing to indicate that creditors are using it. Creditors purchase and use whatever scoring algorithms they choose from FairIsaac. FairIsaac has not ceased sale or license of its prior algorithms, and I dont think that any major CRA or creditor is using FICO 08, so dont think the AU piggyback has dropped.  But that is up to the individual creditor to determine.