Question on Adding an Authorized User

[Anonymous]

Hi guys!  Sorry I haven't posted in a while, I was sick with pneumonia and then we moved houses, so it's been a crazy month.

Anyway, I have a question about adding an AU.  Hubs has terrible credit, as did I when I started this back in January.  However, I have gotten my scores up almost a hundred points in the last few months.  This has been the result of paying off baddies, getting some baddies deleted/GW, and, most specifically, adding three credit cards to my reports.  I now have CapOne, BoA, and CreditOne. 

Hubs cannot get qualified for any cards right now- but, we can't get his credit score up to qualify him.  It's a catch 22.  He has done all of the same things I have, with no results, other than his scores dropping several points.  He is in the very, very low fives (about 505 across the board).  I am in the very very high fives (590 across the board). 

With that said, if I add hubs to my three cards as an AU, will these cards show up on his credit reports?  Will they help him the way they have helped me, score wise?  Will this impact my credit score at all?

All help is welcome.  Thanks, and it's so good to be back!!

[Anonymous]

Have hubs open an account with SDFCU and apply for one of their secured cards, and possibly a secured personal loan as well, if he has no open installment account (auto or student loan).

Consider apping for a second Cap One card to replace that horrid CreditOne....

[gdale6]

I would only add 1, the oldest you have, it should report if the creditor reports the AU, you need to ask if they do since he lives at same address. i would not add all 3 it just muddies the water and he needs his own 3 bankcards and 1 store card eventually as well just like you do. I would try the route Norman has given for SDFCU first.

[Anonymous]

Neither of us is in a position to join SDFCU.  I am an independant contractor (I'm a Petroleum Landman) and hubs is a sales manager at a family owned car lot.  So, SDFCU is out of the question unless there is something I'm not seeing on their site.

He was turned down for CapOne secured, Wells Fargo secured, and BoA secured.  He has a prior tax lien (among other issues) and  those companies will not approve with a tax lien, apparently. 

Therefore, our only option for a secured card for hubs is First Premier (no thanks).   I'm just wondering if having an AU on my accounts will affect my credit in any way. 

Also, the Credit One is a horrible card, definitely.  However, I use it a bare minimum (fill my tank) once a month and pay it off in full within 72 hours.  I look at this card as a tool, nothing more.   First Premier has a card that my ex opened in my name and maxed out.  I knew nothing about it until I checked my credit this past January.  It was a $300 limit, and yes, I have taken every avenue to dispute/remove, etc., to no avail.   BUT, they are reporting it as open and utilizing $450 of a $300 limit, making my usage skyrocket.  So, the Credit One card, even though its a POS, is keeping that util down.  With it, I have $1200 of available credit, of which I am "using" $450.  I got denied for Fingerhut (how??? I havea score of 590 lol), so Credit One was all I had left.  I look at it like I am "buying" my good credit right now.  The FP card comes off in January, which is nice. 

Currently, I have an auto loan, three CCs, and an installment loan.  As soon as I get to 615 median I will apply to Comenity for a store card and see what happens. 

Meanwhile, will adding that AU hurt my credit in any way? 

[Anonymous]

Norman, I haven't quite had my CapOne long enough for a second one.  I do a pre qual every month to see if they have any offers, but they only say "we recommend this card".  Which, I have learned the hard way, is NOT a pre qual. 

Hubs does have an auto loan.  He just can't seem to get a CC.  You wouldn't think that secured cards would even need to approve you, but apparently, they do. 

[Anonymous]

You can qualify to join sdfcu by joining the acc, American consumer council, it cost $15 for a lifetime membership.

Then you should be able to get their secured card.

[alienfico]

Try OpenSky no credit check, just a secured deposit between $200-$2,500.  It takes forever to receive the card, but again you just charge something and pay

it in full before the statement cuts.  There is also a database of secured cards:

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Secured-Cards-Database/m-p/3846302#M398522

Hope this helps.

[RobertEG]

The more AU accounts that are added, the less the consumer's generated score reflects their own credit history, and thus risk.

Depending upon the extent to which any prospective creditor does a manual review in their decision making, they may tend to discount or ignore a credit score in their decision making if it does not provide an assessment of the consumer's risk.

If multiple AUs are added to obtain lower principal or lower CL accounts for rebuilding, are they for credit wherein the creditor normally does a manual review, or do they primarily consider only credit score?

In my opinion, the answer may be somewhat in the middle, adding multiple AUs to get low limit cards, but with a mind on ditching those AUs as the consumer obtains their own mix of credit.

[Anonymous]

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@Anonymous wrote:

Neither of us is in a position to join SDFCU.  I am an independant contractor (I'm a Petroleum Landman) and hubs is a sales manager at a family owned car lot.  So, SDFCU is out of the question unless there is something I'm not seeing on their site. Yeah, I missed it too, the first time - all you have to do is become a member of the American Consumer Council. Anyone can join the ACC. In your SDFCU membership app, where it asks what your membership qualification is just put "ACC". They'll even 'spot' you a dollar to open your account, and you can add funds to it later. If Hubs has no installment accounts, I would do that first. Get that reporting, then do a Secured CC.

He was turned down for CapOne secured, Wells Fargo secured, and BoA secured.  He has a prior tax lien (among other issues) and  those companies will not approve with a tax lien, apparently. Could be something else, too - maybe thin file if he's not had 'any' sort of credit in recent years. I've not heard of people being turned down for secured cards solely for tax liens.

Therefore, our only option for a secured card for hubs is First Premier (no thanks).   I'm just wondering if having an AU on my accounts will affect my credit in any way. It might, if everywhere else shoots you down, its worth a try. I'd just do it with a single (your oldest) account.

Also, the Credit One is a horrible card, definitely.  However, I use it a bare minimum (fill my tank) once a month and pay it off in full within 72 hours.  I look at this card as a tool, nothing more.   First Premier has a card that my ex opened in my name and maxed out.  I knew nothing about it until I checked my credit this past January.  It was a $300 limit, and yes, I have taken every avenue to dispute/remove, etc., to no avail.   BUT, they are reporting it as open and utilizing $450 of a $300 limit, making my usage skyrocket.  So, the Credit One card, even though its a POS, is keeping that util down.  With it, I have $1200 of available credit, of which I am "using" $450.  I got denied for Fingerhut (how??? I havea score of 590 lol), so Credit One was all I had left.  I look at it like I am "buying" my good credit right now.  The FP card comes off in January, which is nice. I would get the FP account removed via the ID Theft provision. Look up FCRS 605B for the details. Is it charged off?

Currently, I have an auto loan, three CCs, and an installment loan.  As soon as I get to 615 median I will apply to Comenity for a store card and see what happens. 

Meanwhile, will adding that AU hurt my credit in any way? Not that I've heard of. Just make sure its a card with low balance/good history.

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[Anonymous]

I did the Cap One prequal for my wife and all it was showing was the secured card. But we apped anyway and she was approved for a QS1 with $500 limit. So, YMMV there, the prequal is definitely not terribly accurate. I'd keep trying every so often. An inquiry every month or two isn't going to do a whole heck of a lot of damage at this point, they are a necessary evil during the rebuilding process.