Where did you hear that? They still count, it's just that sometimes the anti-abuse algorithm will discount it, especially if the AU doesn't share a last name/address with the primary accountholder.
@Mehar wrote:I have heard that FICO no longer considers the fact that you are an Authorized User in their scoring.
Any thoughts?
FICO still considers includes AU's in it's scoring, BUT doesn't use the AU balance or credit limit for calculating utilization ...
13Oct22 Exp F8: 812
@calisig wrote:
@Mehar wrote:I have heard that FICO no longer considers the fact that you are an Authorized User in their scoring.
Any thoughts?
FICO still considers includes AU's in it's scoring, BUT doesn't use the AU balance or credit limit for calculating utilization ...
How does it not? It's why we tell people to remove themselves as AU when they're on a card with high utilization.
"Since you are not responsible for the debt, the account will not appear on your Experian credit report if there is negative information in the payment history, such as late payments. However, your credit score could be hurt if the account carries a high balance because it will increase your credit utilization rate, which affects credit scores."
https://www.experian.com/blogs/ask-experian/authorized-user-accounts-can-factor-in-to-credit-scores/
Because not all credit card companies choose to report their accounts to the authorized user's credit history, you should contact the lender to make sure they report authorized-user accounts to the 3 CRA's before making the decision to add your name for the purpose of building credit. Each CRA acts a bit different.
From 'Amount of debt' section of Experian report. The calculations below do not include the AU accounts I am on (which are not listed in my sig). One of my AU accounts recently increased so significantly that it reduced one of my VantageScore 3 scores by 67 points, but only reduced my FICO 8 by 2 points.
VantageScore 3 seems to include AU utilization, whereas FICO 8 does not. Below are screen shots from my Experian FICO 8 and Equifax VantageScore 3 of the same recent event: when utilization of an AU account I am on increased by 20%. FICO dropped 2 points, while VantageScore dropped 67 points!
