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@joejroe wrote:
Hello,
My scored dropped an average of 30 points each report due to the fact it seems that Authorized user accounts don't help you any more. When my score dropped, I pulled my fico scores to see what was different and I noticed my age of accounts changed big time, digging in.. I see that they dont count authorized user accounts any more in any fashion. Did this just change this month? Anyone else notice it?
Here's a response from Tom Quinn, our credit expert:
All FICO® Score versions include authorized user credit card accounts when calculating a FICO Score. This can help people benefit from their shared management of a credit card account. It also helps lenders by providing credit scores that are based on a full snapshot of the consumer's credit history. To protect lenders and honest consumers, starting with FICO Score 8, the score calculation substantially reduces any benefit of so-called "trade line renting." That's a credit repair practice that entices consumers into being added to a stranger's credit account in order to misrepresent their credit risk to lenders.
@Cindy_FICO wrote:
@joejroe wrote:Hello,
My scored dropped an average of 30 points each report due to the fact it seems that Authorized user accounts don't help you any more. When my score dropped, I pulled my fico scores to see what was different and I noticed my age of accounts changed big time, digging in.. I see that they dont count authorized user accounts any more in any fashion. Did this just change this month? Anyone else notice it?
Here's a response from Tom Quinn, our credit expert:
All FICO® Score versions include authorized user credit card accounts when calculating a FICO Score. This can help people benefit from their shared management of a credit card account. It also helps lenders by providing credit scores that are based on a full snapshot of the consumer's credit history. To protect lenders and honest consumers, starting with FICO Score 8, the score calculation substantially reduces any benefit of so-called "trade line renting." That's a credit repair practice that entices consumers into being added to a stranger's credit account in order to misrepresent their credit risk to lenders.
Dear @Cindy_FICO Why does MyFICO say, with respect to age of oldest account and average age of accounts, that
"authorized user accounts aren't considered in the calculation of this attribute".
No, nothing changed but the average age of accounts due to the fact of it not counting AU accounts.
@SouthJamaica wrote:
@Cindy_FICO wrote:
@joejroe wrote:
Hello,
My scored dropped an average of 30 points each report due to the fact it seems that Authorized user accounts don't help you any more. When my score dropped, I pulled my fico scores to see what was different and I noticed my age of accounts changed big time, digging in.. I see that they dont count authorized user accounts any more in any fashion. Did this just change this month? Anyone else notice it?
Here's a response from Tom Quinn, our credit expert:
All FICO® Score versions include authorized user credit card accounts when calculating a FICO Score. This can help people benefit from their shared management of a credit card account. It also helps lenders by providing credit scores that are based on a full snapshot of the consumer's credit history. To protect lenders and honest consumers, starting with FICO Score 8, the score calculation substantially reduces any benefit of so-called "trade line renting." That's a credit repair practice that entices consumers into being added to a stranger's credit account in order to misrepresent their credit risk to lenders.
Dear @Cindy_FICO Why does MyFICO say, with respect to age of oldest account and average age of accounts, that
"authorized user accounts aren't considered in the calculation of this attribute".
While AU accounts are considered in the calculation of the FICO Scores, their contribution to the overall score value is relatively minor. Since it is relatively minor, myFICO doesn’t include AU accounts in our score explanation features.
I read the response from Cindy as “there are not many points available for setting up an AU”. So why bother?
Instead of pursuing the idea that AU is magically adding many points to users accounts, perhaps it is time to stop, and start gathering data points. The AZEO method is similarly dangled to new members as an “optimization” method when for FICO 8 it is really just low utilization. Maybe AU is similarly not a benefit.
It seems most of the people we see trying for AU are rebuilding, and thus in dirty files. Others are new to credit, and experiencing rapid changes on thin files. Are any of those files quiet enough that the benefit of adding the AU is able to be isolated?
@NRB525 wrote:I read the response from Cindy as “there are not many points available for setting up an AU”. So why bother?
Instead of pursuing the idea that AU is magically adding many points to users accounts, perhaps it is time to stop, and start gathering data points. The AZEO method is similarly dangled to new members as an “optimization” method when for FICO 8 it is really just low utilization. Maybe AU is similarly not a benefit.
It seems most of the people we see trying for AU are rebuilding, and thus in dirty files. Others are new to credit, and experiencing rapid changes on thin files. Are any of those files quiet enough that the benefit of adding the AU is able to be isolated?
When you say most? Im not most since the dirty file is long gone. I added the AU since I was using the card and paying for it, I have 1 personal card that is 4.5yrs old and a clean credit report. The only benefit that the AU has helped me with is age, credit score and CL on paper, in real life creditors dont look at the AU, they are looking at my own personal credit and even with a credit score above 800, perfect payment history and clean report, I am still branded as a dirty file. I will still keep the AU account on my report, because I will continue to use it ad pay for it.
@Anonymous wrote:
@FenderGuy How or why are you branded as a dirty file if your report is clean?
@Birdman7 I might as well be when Discover is offering me 25% APR and a SL of $2700, that the same APR as my Capital One when I got it 4.5 years ago with 700 across all 3....