@Anonymous wrote:
Hoping to get some definitive clarifcation on how authorized user works.
My credit profile is new & thin (new to US credit from Canada).
My oldest VISA is approx 15 monts old.
I have 3 other cards ranging from 3-5 months old.
When I applied for PenFed Power Cash Rewards was declined for "Limited credit experience" despite my Equifax credit score being 747 (as per the decline letter).
So here's my question: If I were to be added as an authorized user on one or two 10 year old credit cards with $5,000 - $10,000 limits (0 utilization), will the cards show up as my own, or will there be any identiying info that would indicate I'm an authorized user?
Your credit report will indicate that you are an authorized user on the two cards. The primary purpose of being added as an authorized user is to increase the average age of your accounts. I'm guessing, based on the info you provided, that your current average age is approximately 7 months. Many lenders prefer to see an average age of at least 1 year so this is where being an authorized user is helpful.
However, during a manual review of your credit report its likely that an underwriter will ignore the AU accounts; lenders like PenFed typically manually review all apps so it might not help you much there. For apps that are processed automatically you should be fine. Did you have a Canadian credit history? I know its possible in some instances, as with American Express' Global Transfer program, to have the lender consider that in addition to your US history.
