Authorized Users

[RobertEG]

I hate to say this, and endure the wrath of many who have benefited from their AU status, but I totally support the efforts to eliminate AUs from credit scoring, such as is proposed in FICO 08.

Caste your arrows at me if you will, but I see NO legitimate reason for one to take advantage of the earned credit score of another  Period.

I am not surprised at the amazement of those who get daddy's credit history suddenly displayed in their CR.  In the back of their mind is surely the realization that this just aint right.

Credit scores are intended to be a measure of YOUR credit risk.  Not Mommy or Daddy's.

And both parties, through unrelated actions, each put the other's credit scores at risk.

It is just illogical, and unfair to those who earn their scores on their own.  And it hurts those of us who dont seek sham AU account status, for FICO is a bucket (grade on the curve) system,and it hurts us all.

I would never ask for, or authorize another to be, an AU.

Message Edited by RobertEG on 05-18-2008 10:18 PM

Message Edited by RobertEG on 05-18-2008 10:21 PM

[marty56]

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RobertEG wrote:

I hate to say this, and endure the wrath of many who have benefited from their AU status, but I totally support the efforts to eliminate AUs from credit scoring, such as is proposed in FICO 08.

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I also agree 100%.  I got your back.

[haulingthescoreup]

I have a different kind of flip side to AU's: I wish they wouldn't report!

I add DH and DD#2 as AU's on my AmEx Gold, and DH on my PenFed cards. I put DH on both, because these cards are for family rather than individual expenses, and I added DD to the Gold as an emergency back up when she goes out of town/ out of the country.

Thank goodness the PenFed doesn't report on DH's reports, but the AmEx finally showed up on my own reports and presumably on theirs. Neither of them need to have their reports re-aged, but that's what will happen when it shows up. So the AU card will hurt, rather than help, their scores. I'd like to add DH to my Home Depot and Best Buy cards as well, but with scores in the 800's, if he had three new accounts hit his reports, he would really get whumped.

As I said in a post above, my kids blundered their ways through establishing credit on their own, other than my adding my daughters to USAA, and they've all come through fine. When it comes to using AU cards to improve credit profile and scores, I can grit my teeth and handle it for family members; after all, I'm doing it myself, because I didn't have credit in my own name for much of my married life. Beyond that, forget it. The abuse of AU is what directly caused FICO 08 (if ever it happens) to not count them at all. (And this was done at the request of the credit industry, BTW, not just on a whim by FICO.)

[smallfry]

Not in favor myself but I didn't make up the rules so why shouldn't I help my kids out if I can?

[Junejer]

Smallfry, I am with you on this one. The intent of FICO '08 is to rid the abusers (piggybackers) off of the grid. I see absolutely nothing wrong with giving your children a leg up in life.

Come on people, gimme a break. So, why do we give our children nice gifts to start life off after college? I know people who were given nice chunks of change for use as a down-payment when the time came for a house. Meanwhile, others had to sweat blood to come up with 5% down (like me) for their first home. What's the difference in the two scenarios?

If FICO '08 hasn't hit by next June, DD will be added as AU to one of my cards to help her jumpstart her life.

[RobertEG]

Smallfry and Byrd, I hear  you, and understand your reasons.

But let me put forth a scenario.......

One of the "buckets" in FICO is short credit history.  That puts son/duaghter into the historical bucket that represents averages.  Suddenly, they jump buckets by "achieving" a bigger and shinier bucket, leaving the old oaken bucket behind. If all Moms and Pops put their offspring on as an AU, it would virtually eliminate one of the 12 FICO buckets, making the whole system more of a joke than it already is.

FICO is based upon past history.  To game that history is to skew everythiing for all of us, putting one into my bucket that has not earned the risk associated with it by demonstrating their status in fulfiliing that risk on their own,  in the way that FICO has historically assesed their risk.

Give 'em your own hugs and kisses, but not at the expense of others who have paid for their own.

Message Edited by RobertEG on 05-19-2008 07:45 PM

[smallfry]

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@RobertEG wrote:

Smallfry and Byrd, I hear you, and understand your reasons.

But let me put forth a scenario.......

One of the "buckets" in FICO is short credit history. That puts son/duaghter into the historical bucket that represents averages. Suddenly, they jump buckets by "achieving" a bigger and shinier bucket, leaving the old oaken bucket behind. If all Moms and Pops put their offspring on as an AU, it would virtually eliminate one of the 12 FICO buckets, making the whole system more of a joke than it already is.

FICO is based upon past history. To game that history is to skew everythiing for all of us, putting one into my bucket that has not earned the risk associated with it by demonstrating their status in fulfiliing that risk on their own, in the way that FICO has historically assesed their risk.

Give 'em your own hugs and kisses, but not at the expense of others who have paid for their own.

Message Edited by RobertEG on 05-19-2008 07:45 PM

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Robert I have gone back and forth on this myself. I didn't make the rules and by me not doing this it wouldn't change much at all. I do see your point. Up until this week I have not done anything credit wise to help my kids. I see both sides of the argument. It's a tough decision.

[Mn_Vikes]

I agree 100% with RobertEG, my 19 year old son was able to buy a house and a car in the last year on his and his wife's scores, no help. It will be one loophole I will be glad to see closed.

I'm sure there may be cases where its needed but it is mostly used to help give people credit the didn't earn.

Its part of the reason the whole system is in turmoil if you ask me.

[smallfry]

If you want to go down the line about what's fair and what isn't in this world I got a list a mile long. Helping the kids get started is way down at the bottom.

[Mn_Vikes]

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smallfry wrote:
If you want to go down the line about what's fair and what isn't in this world I got a list a mile long. Helping the kids get started is way down at the bottom.

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Don't get me wrong,  I understand why you would do this, it's not against the law but that does not make it right.  I hope with this gift of AU you also give them the gift of advice on using credit wisley, not just how to get something they didn't deserve.