Authorized Users?!

[Anonymous]

I am needing information in adding my brother as an authorized user on my credit card account.

I am wanting to add him on my credit card account with WellsFargo. If I add him as an authorzed user, would that show up on his credit report, and thus affect his FICO score? What about adding him as a joint account holder? Which would be benefitial in helping his credit? We are trying to purchase a home together but his credit is lacking.

[MarineVietVet]

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@Anonymous wrote:

I am needing information in adding my brother as an authorized user on my credit card account.

I am wanting to add him on my credit card account with WellsFargo. If I add him as an authorzed user, would that show up on his credit report, and thus affect his FICO score? What about adding him as a joint account holder? Which would be benefitial in helping his credit? We are trying to purchase a home together but his credit is lacking.

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Welcome to myFICO.

Yes adding him as an AU can help him IF the account is older than any of his (older than his current AAoA is even better), IF the payment history is long and clean, IF the utilization is very low, and IF it will report to the CRA's. Not all cards will do this. You need to ask the company first. He will inherit the entire history of this account. One caveat however; if this account starts to go south your credit will be affected as well. Keep that in mind.

[js0319]

If you were to add him, it would report as an "authorized user" account. The same account more than likely reports as an "individual" account for you, and when there are co-applicants it reports as "joint". You just want to make sure that there are absolutely no key derogatories on that TL if you truly want him to benefit from being an AU.

[RobertEG]

Potential drawback:

Just as you cant tell in advance how his score will be affected, future creditors, should they wish to do a manual review of his CR and look at his own,individual risk based on his FICO score, will be unable to do so.

They have no way of generating a score based only on his credit history.  Thus, his score, even though improved, may have less use to a potential creditor.

If the creditor is offering relatively low or secured credit, they might not even do a manual review.  Thus, the score would be the prime factor, and a benefit.

However, if apping for higher amts of credit, a manual review might be done, and the score may be considered of less importance in their decision-making.