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Credit reporting question, authorized user account.....

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Anonymous
Not applicable

Credit reporting question, authorized user account.....

Currently using myfico.com I'm at:

Transunion - 745 Equifax - 747

No clue on Experian.

I'm 30, but what's interesting is using myfico....it appears I have 19 years of credit history. I belive this is due to me being an authorized user on my father's AMEX Gold Charge Card, and it counting the length of time it's been open since 1992.

He pays off the card each month since it's a charge card, but it's sometimes reported with a HUGE balance, since he uses it for business.

I have only 6 years of credit history myself.

Is the AMEX helping me or hurting me? It's giving me longer credit history, correct? However, sometimes it's reported with a $13,000 balance on it. Again, it's clean the next month, but after THAT it's reported with a huge balance the next month.

Does the longer credit history and good payment of the card outweigh the con of it sometimes be reported with a high balance?

Or would I just be better off taking myself off of it and going from 19 years of reported history to 6 years but never having a huge reported balance?

 

 

 

Message 1 of 7
6 REPLIES 6
llecs
Moderator Emeritus

Re: Credit reporting question, authorized user account.....

Hi OP, I edited your post to remove hot links via redirection from fatwallet.

 

I'd leave it! Unless your AAoA and length of history is over 19 years, I bet you'd see a significant drop if removed. Per FICO scoring, EX and EQ totally ignores the balance per util calcs. All newer versions of TU FICO, including versions used by most lenders, also ignore the balance per util calcs. Lenders in general ignore the balance. The only exception is the less-used TU98 version as found on myFICO. This version calculates util off the balance and "high balance" of the TL and factors into FICO, though it looks like when you pulled your TU FICO, it didn't phase it.

Message 2 of 7
DaveSignal
Valued Contributor

Re: Credit reporting question, authorized user account.....

Shouldn't you have closer to 12 years, being 30 years old?

 

I would keep the AU card.  Whats the credit limit on it?  Unless your father is using more than 50% of his credit, I bet your score will drop when you take that account off.

 

EDIT:  nevermind.  didn't see the mod post above when I posted this.... 

EX:694 TU:744 EQ:777
Amex ED $19.5k - BoA Travel Rewards $15k - CSP $5k - SDFCU EMV $15k - NFCU goRewards $20k - Barclays Arrival $6.5k
Message 3 of 7
Anonymous
Not applicable

Re: Credit reporting question, authorized user account.....

Thank you so much!

 

I will leave it on there. I appreciate all the help!

Message 4 of 7
RobertEG
Legendary Contributor

Re: Credit reporting question, authorized user account.....

From a purely FICO perspective, there is, in my opinion, no definite answer.  It will vary due to circumstances beyond your control.

When its % util gets high, it is affecting both your overall % util and the scoring of the individ % util on that one card, to your disadvantage.

And it appears to always carry a balance, so is always adding one card in the denominator of your % cards with balance calculation.

A potential triple hit in revolving utilization.

I would suspect that, at high % utils, the negative impact will approach that of the postive benefit of its long credit history. 

 

From a creditor perspective, inclusion of the history of another in your scoring will prevent creditors from assessing your individual risk should they desire to do so.

Just as you cant assess the impact of the added credit history, neither can a creditor.

If all they will look at is your FICO score, the AU impact wont be an issue.

If they want to do a manual review to assess your own, personal history, your FICO score will lose its benefit to them in a personal risk assessment.

 

 

Message 5 of 7
Crashem
Valued Contributor

Re: Credit reporting question, authorized user account.....

Empty, I highly recommend you get AMEX of your own.  Do a search on these forums about AMEX backdating.  Given that it is already reporting you as authorized user since 1992.  Register your authorized user AMEX online and see what it says as your member date.  You can lock that in by getting your own AMEX which should also report that it was opened since 1989.  At that point, you can decide if you want to stay on your dad's AMEX.

 

As for your original question, charge card utilization is not taken into account in almost all modern FICO scoring models.  So you don't need to worry about utilization.  AU status is discounted in some FICO scoring models if it is considered "piggybacking."  So all things being equal, you should probably keep AU status on that card.  But if there was ever any problems with the card, you would need to figure out how to get it removed from your credit reports.

               LIMITS IN CARD DESCRIPTIONS
Message 6 of 7
AndySoCal
Valued Contributor

Re: Credit reporting question, authorized user account.....

I would agree with the idea of getting your own AMX card if you want one.  I would also think about remving your self as an AU on this account if it is there purely to help with your credit. If there are other reasons besides this then I would leave it.  With the account being there it makes it look like you have had  credit since you were about 10 years old.

FICO Scores XPN v8 802 V2 831 (SDFCU) TUC 803 v8 EFX 807 (10/2023)
Discover 09/90 19,000, JCPenney 10/2008 4,700 US Bank Cash+ 12,000 Citibank Custom Cash 5/2015 11,100 C State Dept. FCU 15,000 06/2023 , 02/2024 Redstone FCU Signature VISA 10,000 Banking: Ally Bank Credit Unions: Lafayette FCU Quorum FCU State Department FCU State Department FCU Pelican State CU Redstone FCU

Message 7 of 7
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