Will becoming an Authorized User (AU) help?

Anonymous · ‎10-12-2014

I'm brand new to myFico.

My current TU score is 589 (Credit Karma). My EXP score is 650 (Credit Sesame). I only have one CC right now (Quicksilver), with only a $300 limit. My credit woes began in 2004, and as of earlier this year, I've paid off all the baddies and only owe for a car (20K) and student loans (12K).

My mom said she will add me to her Discover card, as an AU, which has a 14K limit, and she generally carries a $200-$400 balance.

My question is, will this help me? I have heard conflicting stories on wheather it will report to the bureaus or not.

Thanks

Ysettle4 · ‎10-12-2014

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Another-AU-Authorized-User-Question/m-p/35212...

769

⋅ INQs: 6

774

⋅ INQs: 5

764

INQs: 8

UTIL: 2%

AAoA: 5yr 8mos

Total Credit Line: $873,950

Anonymous · ‎10-12-2014

I read that thread. Not sure I found it helpful. My experience is that being an AU on my ex husbands ccs has helped me. It's added years to my credit history and I have positive accounts reporting.

RobertEG · ‎10-12-2014

Assuming the AU reports, and assuming the account scoring is positive, the question as to whether or not the AU is "helpful" will depend upon how a potential creditor will view it.

Yes, it can help your score. If a potential creditor only considers your score in their determination, then yes, it is helpful.

However, if they do a deeper, manual review of your CR and see that your score is based in part on the inclusion of the credit history of another, then it informs tham that your score is not representative of only your own personal credit risk.

They could thus choose to discount or ignore your entire score in their decision making.

That may not be "helpful."

Anonymous · ‎10-12-2014

I appreciate all the input. I know I can't rely on this method heavily, but I figure it can't hurt to try. My wife and I have both vowed to greatly improve our credit profiles, but maybe a little jumpstart wouldn't hurt.

Ysettle4 · ‎10-12-2014

@RobertEG wrote:
Assuming the AU reports, and assuming the account scoring is positive, the question as to whether or not the AU is "helpful" will depend upon how a potential creditor will view it.

Yes, it can help your score. If a potential creditor only considers your score in their determination, then yes, it is helpful.
However, if they do a deeper, manual review of your CR and see that your score is based in part on the inclusion of the credit history of another, then it informs tham that your score is not representative of only your own personal credit risk.
They could thus choose to discount or ignore your entire score in their decision making.
That may not be "helpful."

This maybe the case. For exmaples, if you are applying for a credit line with a bank that only considers scores then yes, quite helpful (Cap One, credit one, etc.). However, you have lenders like Citibank, discover, BoA that take "deeper" dives and will identify that you are assisted via another persons profile and may deny based on that.