Authorized Users and High Credit Limits.. Needed??

coolandcalm · ‎08-25-2022

I've read all about AZEO across posts on here.. I've got 2 questions..

1) If your credit profile is strong.. do you need AU accounts to increase your score?

2) High credit limits, don't really matter.. It's the Utilization that's important?

I'm sure that higher credit limits may push some lenders to give you similar limits when you apply for a new card...

pizzadude · ‎08-25-2022

@coolandcalm wrote:
I've read all about AZEO across posts on here.. I've got 2 questions..

1) If your credit profile is strong.. do you need AU accounts to increase your score?

2) High credit limits, don't really matter.. It's the Utilization that's important?

I'm sure that higher credit limits may push some lenders to give you similar limits when you apply for a new card...

1) Correct, AU accounts can help your profile if it is thin / new but once you've established your own credit they're unneccessary.

2) This is true from a FICO scoring perspective, it's utilization% and #of cards with balances that matter. However, from a creditor perspective, yes they'll look at your comparable credit limits on other cards and it may be a factor in their decision making around your CLIs / approvals.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX

M_Smart007 · ‎08-25-2022

@coolandcalm wrote:
I've read all about AZEO across posts on here.. I've got 2 questions..

1) If your credit profile is strong.. do you need AU accounts to increase your score?

2) High credit limits, don't really matter.. It's the Utilization that's important?

I'm sure that higher credit limits may push some lenders to give you similar limits when you apply for a new card...

@coolandcalm

1) A lot of algorythym's discount AU's, sometimes AU's can hurt you .. if they are carrying balances. (I personally do not have any)

3 revolving credit cards and a paid down installment loan (below 9%) will usually do the trick

Along with AZEO can boost your score. Lenders do not always go by score alone.

They look at many other factor's. Debt to income, AAoA, AoOA, how many new accounts, how many inquiries, a Persons Income,

any baddies, lates, BK's, CO's, collections (derogs) ,Credit mix.

2) High credit limits do matter to certain Underwriters, as they are usually going to give you something in line with your other limits (but not always) .. Some credit unions and once and a while say Chase may go above and beyond.

They also look at how much credit that you have been utilizing on your current accounts (using / being reported to the bureaus)

ETA: @pizzadude Types faster and The advice given is very solid.

SouthJamaica · ‎08-25-2022

@coolandcalm wrote:
I've read all about AZEO across posts on here.. I've got 2 questions..

1) If your credit profile is strong.. do you need AU accounts to increase your score?

No

2) High credit limits, don't really matter.. It's the Utilization that's important?

Right

I'm sure that higher credit limits may push some lenders to give you similar limits when you apply for a new card...

I think so too