Lowe’s AU

[Anonymous]

I’ve been added to a Lowe’s card as an AU that started out with a $3000 SL. Within the last week or so there was a CLI to $8300. My scores are in the 640-675 Fico range. This Lowe’s card has yet to hit my credit report. Will a higher limit like that help my scores?

[TaperRandy]

Primary activity on a retail card from Sync...which carries the Lowes brand is reported only to the primary cardholder. What you will see however, is that in general, you will be noted as an authorized user on your credit reports. Takes a while to hit. Probably two-3 cycles. However, if the primary cardholder defaults, or the account goes unpaid, into collections, etc...your name is tied into it...forever. Under "closed accounts".

[Anonymous]

So it won’t really help me but if the balance is run up it could hurt me? Right now utilization is at 3%

[Anonymous]

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@Anonymous wrote:
So it won’t really help me but if the balance is run up it could hurt me? Right now utilization is at 3%

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The higher limit could help you depending on your overall limits and utilization. 

[TaperRandy]

"Could" is the keyword here. Nobody knows for sure. Try calling the 3 bureaus and asking them exactly how being an AU helps you. I know how it hurts, as I was one many years ago and the primary defaulted. It is STILL in the depths of my credit history as an AU on a "closed by grantor" account. Makes me nuts every time I see it. Talkin'...15 years ago. 

[Anonymous]

Lowe’s is by far the largest limit available to me

[Anonymous]

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@Anonymous

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The higher limit could help you depending on your overall limits and utilization. 

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It could, but only if the account actually shows up on the OPs credit report.  The first reply to this thread suggested that being an AU on a Lowe's account wouldn't result in the account showing up on the AUs CR.  If that's indeed true, there's no way being an AU on the Lowe's account could help his utilization and/or his credit scores.

[Anonymous]

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@Anonymous wrote:
So it won’t really help me but if the balance is run up it could hurt me? Right now utilization is at 3%

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Hello everyone.  I think the key here is when the OP emphasizes that he currently has an ultralow utilization. 

Because of that there is a zero chance that increasing his credit limit will help his score, whether through new cards on his report or CLIs to existing cards. 

A person can have an 850 score having three cards with a credit limit of $500 each.   So bigger limits do not in themselves give a person even one extra point.

Congrats to our OP on learning how to control his utilization.

[Anonymous]

The real question behind the question is:

Was being added as an AU a good decision?

To answer that we'd need to our OP to compare the age of his oldest account with the age of the AU card.  If the AU card is much older, then it might be a good decision.  For example, if the AU card is 20 years old and the oldest account in his name is 3 years.   Even still he'd additionally need to know that the card will always be free of lates and have a small balance (compared to its credit limit).  If all of those things are true, it was a good move.  Otherwise it's not.

[Anonymous]

Great points as always by CGID above.  If the Lowe's account did land on the OPs credit report now, as CGID stated it would not help his already ultra low (ideal for scoring) utilization.  It could potentially help if the OP were to increase his utilization at some point, simply because a larger overall limit could aid in keeping that aggregate utilization number down.  Of course, this is assuming that the AU account even shows up on the OPs CR, something that is questionable at best.

Another slightly off-topic question that I'd pose to the OP if he's willing to go there is why his scores are in the mid-upper 600's to begin with.  If he's already at ideal utilization and no more points can be had from that 30% slice of the FICO pie, it suggests that his payment history is far from favorable.  Does your credit report have a lot of negative items on it, likely some of them severe?  I would suggest to the OP focusing on this 35% slice of the FICO pie (payment history) rather than the amounts owed sector, as he's already got that nailed down since his goal here is score improvement.