FICO WILL NO LONGER COUNTS AUs!

[MidnightVoice]

I just asked my Credit Union/Bank to add my wife because of the **bleep** FICO system being abused 

They said no problem

[SoulSmilen]

Midnight... will they run a report?

::ducks:: 

[MidnightVoice]

She can afford the inquiries - they run EQ, and due to Cingular, I don't want mine run You know I would get cell phones in there somewher, didn't you?

[Anonymous]

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MidnightVoice wrote:
She can afford the inquiries - they run EQ, and due to Cingular, I don't want mine run You know I would get cell phones in there somewher, didn't you?

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I must be the anomaly. I use TracFone and pay squat on an average monthly basis. Of course, I almost NEVER use it.

Message Edited by Noah_Bodie on 06-11-2007 11:38 PM

[Anonymous]

I believe this is a good move.  An easy way out is usually the first choice for most people.  I know I've tried to take the easy way a few times.

There is an easy way for parents to help their children build up credit.  They can help cosign, they can help established secured credit cards (front their children the money?)  Teaching someone how to deal with their own credit, vs teaching someone that they can mooch off of the success of other people, and basically look good in the shadows, I think, has a bigger impact than "hooking them up" with a few points on their credit score at a young age.

When I first read the article, my first response was, even though I am repairing my credit, maybe my parents' good credit would be able to help like this.  Looking at it a second time, I noticed this went against my work ethic and principles I live by on a daily basis.  It might have seemed like an easy way out at the time, but in the end, the quick way always bites you in the butt.

-SGT Stu

[MidnightVoice]

I just phoned my CC companies and they are sending me the forms to make my wife the co-owner.

Another reason to do this is in case anything happens to me - wife will have credit cards available while everything is being sorted out.  Everything else is in joint names, but it does all take time to get things done.  And daughter is still an AU, so she will be able to use the card to fly home 

[Tuscani]

Another good read:

http://credit.com/credit_information/credit_report/Consumer-Alert-FICO-Formula-Changes.jsp

[Anonymous]

DOES THIS MEAN THAT EFFECTIVE SEPTEMBER 2007 ANYONE ADDED TO A REPORT AS AN AU WILL BE DROPPED? i'M IN LUCK i GUESS i HAVE NO AU'S ON MY REPORT FALSELY BOOSTING MY SCORE, BUT WILL THIS MEAN THAT A LOT OF PEOPLE'S SCORE WILL DROP

[MidnightVoice]

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rifleman wrote:
DOES THIS MEAN THAT EFFECTIVE SEPTEMBER 2007 ANYONE ADDED TO A REPORT AS AN AU WILL BE DROPPED? i'M IN LUCK i GUESS i HAVE NO AU'S ON MY REPORT FALSELY BOOSTING MY SCORE, BUT WILL THIS MEAN THAT A LOT OF PEOPLE'S SCORE WILL DROP

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It will effect 3 groups of people mainly.

Those trying to boost score by dubious means

Kids being helped by parents

Spouses (mainly women) who are just AUs, not co-signers

[Anonymous]

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rifleman wrote:
DOES THIS MEAN THAT EFFECTIVE SEPTEMBER 2007 ANYONE ADDED TO A REPORT AS AN AU WILL BE DROPPED? i'M IN LUCK i GUESS i HAVE NO AU'S ON MY REPORT FALSELY BOOSTING MY SCORE, BUT WILL THIS MEAN THAT A LOT OF PEOPLE'S SCORE WILL DROP

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The AUs won't be "dropped" from the accounts.  Their TLs as AUs just won't be counted when their scores are calculated.  According to FICO, 30% of people [with enough credit history to generate a score] are AUs.  This seemed high to me.  But many will have their score drop if they have been relying on their AU status to boost their credit.  A much smaller number will have their score increase if they piggybacked onto someone with worse credit than their own.

ETA:  Whoops I got it wrong.  Knew it sounded weird.  Approx 30% of people with reports have AUs on them.

Message Edited by masdeocho on 06-14-2007 02:03 PM