Will this help increase score?
Date: Fri, 07/10/2009 - 05:52
Thanks,
Michelle
no. being an authorized user is just saying that the person is l
no. being an authorized user is just saying that the person is legally allowed to charge things on their account. This will not affect you husbands score,because he is not liable for the bill but it can affect the parents because whatever is charged,it is their responsibility to pay.
Try getting a secured credit card thru your local credit union o
Try getting a secured credit card thru your local credit union or try BOA, Citibank. How it works is you put x amount of money into a savings account, then a credit card equal to your deposit will be issued. You can start with as little as $200 or $300 bucks.
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Actually your answer is very wrong. It is treated just as if you
Actually your answer is very wrong. It is treated just as if you had the card yourself.
"http://myfico.custhelp.com/cgi-bin/myfico.cfg/php/enduser/std_adp.php?p_faqid=71"
And it works vice-versa. If your husband is late at all, it will also negatively affect your parent's credit score, which is why Fair Isaac counsels against the idea:
"http://www.myfico.com/CreditEducation/Questions/Authorized-User.aspx"
I'm not convinced, Chris. Usually an authorized user is just th
I'm not convinced, Chris. Usually an authorized user is just that, and has no financial obligation or responsibility to pay the account, therefore, the CRA usually will not report on an authorized user. If the CRA DOES report, then obviously it will affect the report...but many companies DON'T report on AU's.
I looked at the link you provided, and even there it seems there is disagreement on whether or not it affects your credit.
Previously, people would "piggyback" onto other peoples account and history thereby making their CRA's look better than they actually are. The CRA's have identified this loophole and (if they haven't already) are shutting the door on this tactic.
Still stratching my head on this one!! :?
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The 2nd link was unclear, but the 1st link seemed to me to be qu
The 2nd link was unclear, but the 1st link seemed to me to be quite clear, but then again - if the creditor doesn't report it, then what?
Quote:
Yes. An account indicating that you are an "authorized user" is included in your FICO score and is treated no differently than your other accounts in which you are the account holder. |
It's from the Support Center and is clear in its response. It is quite irresponsible of them to continue to post such a clear answer that may be wrong.
I did see the article about "piggybacking onto other people's accounts" but that sounds like a whole new animal to me (it sounds like Fraud), Quote:
The strangers get paid based on the quality of their credit, with the promise that the new authorized users won't actually be able to buy anything on their cards or even get any of their personal information. |
This is a total LIE and hardly the same thing as a parent giving their child an auth user card to help them establish themselves.
OK, I have found it reported that Fair Isaac did change it, but they changed it back very soon after:
[quote]Fair Isaac said lenders complained that using FICO 08 would inhibit compliance with Federal Reserve Regulation B, which requires lenders assessing a married person's credit risk to consider the credit history of accounts shared by the spouses.
Fair Isaac is keeping the specifics of the new analytic approach secret but says it has found a way to restore authorized-user accounts to the formula but also reduce the impact of piggybacking.
"The FICO 08 scores of legitimate authorized users will now reflect the information on their credit reports about the account(s) on which they are authorized users," says Tom Quinn, vice president of global scoring solutions for Fair Isaac.[/quote] "http://www.bankrate.com/brm/news/cc/20080812-authorized-users-a1.asp"
I can understand completely why they suggest against the practice, because it often ends up hurting the original card holder. There certainly are better ways of teaching and learning how to handle credit responsibly, and the Secured card is one of the best - depending on the program. As I have stated before, my mom got a Secured card and a Secured loan against her savings account which allowed her credit score to rise above 700 from BK 7 in 3 years.
Sorry to add my two cents, but I have experience with this exact
Sorry to add my two cents, but I have experience with this exact thing also and this is what I was advised and saw on my report: Adding as an authorized user is only that, you can use the card. However, if they put you on as a joint card holder, they do report to the CRA's along with the card's credit history. Call the card company, have them mail out a joint holder agreement, complete, sign, and return. They will require your name, address, SSN, and in some cases photo ID proof. You will also need the original card holder's signature on the form.