Author Topic: Authorized user for building credit?  (Read 1058 times)

dylbertiii

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Authorized user for building credit?
« on: March 22, 2018, 10:25:26 AM »
Hello,

My partner's credit is excellent (800+). My credit is eh (650). If i become an authorized user of their credit card, will it do much to build my credit? Or is that something that would have a worthwhile impact if my credit score was lower than 650?

Thanks for your time and effort in responding!

Lady SA

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Re: Authorized user for building credit?
« Reply #1 on: March 22, 2018, 11:07:18 AM »
If you are looking to boost your credit, the credit score of the credit holder has no bearing and wont affect yours in the slightest.

Your credit score is simply a function of how much credit you have available in your name, your utilization of it, and your history of good behavior. Like I said, someone else's credit score won't have any impact whatsoever.

However, because they have a good score, likely they have a credit line/card that has a higher limit. If you become an authorized user, you will suddenly have a lot more credit that is in your name, and your utilization rate will correspondingly go down.

What I'm trying to say is that we would need to know how large the credit line is before you would know if it would have any positive impact on your credit score. An extra $5k won't bump your score much. A $30k or $50k line might.

Check out creditkarma.com, they do a very good job of informing you what the factors are in your score and giving you tips to increase it.
https://www.earnest.com/invite/lillian2 --> Use this referral to refinance your student loans with Earnest and get a $200 bonus!

Catbert

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Re: Authorized user for building credit?
« Reply #2 on: March 22, 2018, 11:24:46 AM »
Lady SA is only partly right.  You'd be given "credit" for that account as if it had been yours for the life of the account.  Showing, for example, a 15 year old credit card with on-time payments and low utilization ratio would definitely help.  Not sure how much.  It would not, however, wipe out the bad things you've done to get lousy credit.

If your partner is comfortable with adding you as an AU go ahead.  They can always drop you.

dylbertiii

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Re: Authorized user for building credit?
« Reply #3 on: March 22, 2018, 01:11:13 PM »
Thanks for the replies! I think I understand.

My question isn't whether the 800 helps my score; it's whether an authorized user status will have an impact on my 650 score. I think Catbert addresses that. Partner's oldest credit card i think is 3 or 4 years, ~$5k line of credit.

650 = "lousy credit." :( :P

boarder42

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Re: Authorized user for building credit?
« Reply #4 on: March 22, 2018, 01:20:00 PM »
Yes there is a mega thread on this where we are all getting paid to add people like you to our credit cards to boost their credit -  the important question is who is the bank on the card?  AMEX does not work at all. 

5k is really low for a line of credit i'd suggest you have them call the bank to get it raised prior to adding you - but i've added my SIL to one of my chase cards  10 years 20k limit and her credit went up almost 200 points .

i also sell tradelines as mentioned above to make money
https://forum.mrmoneymustache.com/share-your-badassity/selling-tradelines-piggybacking-part-ii-$1000hr-20-40kyr-side-gig/2200/?topicseen

boarder42

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Re: Authorized user for building credit?
« Reply #5 on: March 22, 2018, 01:21:20 PM »
please post your results if you go down this path i find it very interesting

also keep in mind credit karma and other sites are notoriously high for their scoring compared to what the bank shows - so just keep that in mind.

dylbertiii

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Re: Authorized user for building credit?
« Reply #6 on: March 22, 2018, 02:05:15 PM »
Yes there is a mega thread on this where we are all getting paid to add people like you to our credit cards to boost their credit -  the important question is who is the bank on the card?  AMEX does not work at all. 

5k is really low for a line of credit i'd suggest you have them call the bank to get it raised prior to adding you - but i've added my SIL to one of my chase cards  10 years 20k limit and her credit went up almost 200 points .

i also sell tradelines as mentioned above to make money
https://forum.mrmoneymustache.com/share-your-badassity/selling-tradelines-piggybacking-part-ii-$1000hr-20-40kyr-side-gig/2200/?topicseen

With an 800 credit score, the account being 3 years old, and the line of credit currently at $5k, by how much do you think my partner can request to increase the line of credit?

boarder42

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Re: Authorized user for building credit?
« Reply #7 on: March 22, 2018, 02:38:58 PM »
Yes there is a mega thread on this where we are all getting paid to add people like you to our credit cards to boost their credit -  the important question is who is the bank on the card?  AMEX does not work at all. 

5k is really low for a line of credit i'd suggest you have them call the bank to get it raised prior to adding you - but i've added my SIL to one of my chase cards  10 years 20k limit and her credit went up almost 200 points .

i also sell tradelines as mentioned above to make money
https://forum.mrmoneymustache.com/share-your-badassity/selling-tradelines-piggybacking-part-ii-$1000hr-20-40kyr-side-gig/2200/?topicseen

With an 800 credit score, the account being 3 years old, and the line of credit currently at $5k, by how much do you think my partner can request to increase the line of credit?

no idea but always ask for the most and they'll give you waht you get - you still havent said the bank - there are some tricks with some banks to more easily raise it - i'd say its mostly effected by income level and credit score. and how much they are using it.  Tell them to say they have a big purchase coming up and want to put it all on this card.

dylbertiii

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Re: Authorized user for building credit?
« Reply #8 on: March 22, 2018, 03:29:10 PM »
Great, thanks.

It's a Visa card issued by First National Bank of Omaha. I got it through a locally based banked (not in Nebraska).

My partner just started opening cards (has just opened one for this purpose so far) to gain rewards points, so my partner hasn't and doesn't actually plan to use this card that has been opened for three years very much. Does that (its usage) factor much though in the calculation for whether it helps my credit?

solon

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Re: Authorized user for building credit?
« Reply #9 on: March 22, 2018, 03:40:16 PM »
Just do it. There is no downside for either of you. And you can remove yourself anytime you want to.

dylbertiii

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Re: Authorized user for building credit?
« Reply #10 on: March 22, 2018, 03:47:06 PM »
Just do it. There is no downside for either of you. And you can remove yourself anytime you want to.

One downside might be that when my credit improves to 700ish, I'll likely start to do join the effort in racking up rewards points. If Chase has the 5/24 (can only open 5 cards from any bank within a 24 month span) rule, that would mean 4/24 for me if I'm an authorized user on my partner's account.

boarder42

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Re: Authorized user for building credit?
« Reply #11 on: March 22, 2018, 07:26:45 PM »
Au doesn't count against 5/24

dylbertiii

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Re: Authorized user for building credit?
« Reply #12 on: March 23, 2018, 12:44:02 PM »
Au doesn't count against 5/24

Thanks. Now, any credit card-specific advice since I've shared those details?

katsiki

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Re: Authorized user for building credit?
« Reply #13 on: March 23, 2018, 12:52:47 PM »
Au doesn't count against 5/24

Are you sure about that?  I thought Chase's automated system looked at AUs and counted them.  If you got a cooperative CSR during review, they could waive it.  No?
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Catbert

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Re: Authorized user for building credit?
« Reply #14 on: March 23, 2018, 12:56:25 PM »
Au doesn't count against 5/24

Are you sure about that?  I thought Chase's automated system looked at AUs and counted them.  If you got a cooperative CSR during review, they could waive it.  No?

Chase does count AU accounts.  When OP gets to 4/24 she could drop the AU and have one more slot.  (Assuming by then dropping the card wouldn't kill.)

Another vote for just doing it.  Worry about 5/24 when OP gets there.

dylbertiii

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Re: Authorized user for building credit?
« Reply #15 on: March 23, 2018, 01:03:35 PM »
Au doesn't count against 5/24

Are you sure about that?  I thought Chase's automated system looked at AUs and counted them.  If you got a cooperative CSR during review, they could waive it.  No?

Chase does count AU accounts.  When OP gets to 4/24 she could drop the AU and have one more slot.  (Assuming by then dropping the card wouldn't kill.)

Another vote for just doing it.  Worry about 5/24 when OP gets there.

It looks complicated https://thepointsguy.com/2017/12/authorized-user-cards-count-524/. But agreed, I should go for the AU.

Why do you presume I'm a she? Because I have "lousy" credit?

Sibley

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Re: Authorized user for building credit?
« Reply #16 on: March 23, 2018, 01:15:34 PM »
Because it's less polite to type "it" and people tend to have a default pronoun they fall back on without thinking? Our brains have autopilot for a reason. Though I'm going to go with male, mostly because of your latest response and also because on average, the men I know know are more likely to have a lower credit score than the women. Highly scientific of course. /s
 
Regardless, whatever you did/didn't do to get a low credit score, work on that. So if you're paying late - get a system. High balances - pay it down. And so on. That will have a much larger impact in the long run than AU cards.

dylbertiii

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Re: Authorized user for building credit?
« Reply #17 on: March 23, 2018, 01:20:36 PM »
Because it's less polite to type "it" and people tend to have a default pronoun they fall back on without thinking? Our brains have autopilot for a reason. Though I'm going to go with male, mostly because of your latest response and also because on average, the men I know know are more likely to have a lower credit score than the women. Highly scientific of course. /s
 
Regardless, whatever you did/didn't do to get a low credit score, work on that. So if you're paying late - get a system. High balances - pay it down. And so on. That will have a much larger impact in the long run than AU cards.

On it! Just paid off an old credit card and made some decent dents in student loans.

Catbert

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Re: Authorized user for building credit?
« Reply #18 on: March 23, 2018, 06:19:10 PM »
I tend to think posters are female bc I am female.  I tried to avoid genered pronouns by saying "OP" but one slipped by me.



dylbertiii

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Re: Authorized user for building credit?
« Reply #19 on: April 02, 2018, 02:57:14 PM »
I did not get the increase in credit. I think they increased by credit back in February by $500, so they denied my request. They suggested that I try again in 3-4 months. I should add the AU asap still, right? Then still follow through with the request to increase credit, right?

Thanks folks for all the help and replies.

Catbert

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Re: Authorized user for building credit?
« Reply #20 on: April 02, 2018, 03:38:20 PM »
Yep,go ahead and add the AU.  Let us know the impact on their (your?) credit.

dylbertiii

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Re: Authorized user for building credit?
« Reply #21 on: April 16, 2018, 06:39:23 PM »
"Please be advised that persons added to your account as an AU share no responsibility or liability for the account." Does this mean that my SO's credit score will not be impacted?

boarder42

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Re: Authorized user for building credit?
« Reply #22 on: April 16, 2018, 07:14:53 PM »
No we've been thru this

dylbertiii

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Re: Authorized user for building credit?
« Reply #23 on: April 17, 2018, 12:50:34 PM »
Sorry. Seems like there's some confusion due to OP and SO using the same profile to post to this.

Allow me to rephrase:
SO adds OP as AU.
In approval letter, creditor says "Please be advised that persons added to your account as an AU share no responsibility or liability for the account." Given this and that OP was never asked for their SSN, we are worried that OP's credit will not benefit. Should we be?

netskyblue

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Re: Authorized user for building credit?
« Reply #24 on: April 17, 2018, 01:26:47 PM »
I just recently added my partner as authorized user to my three credit cards (the oldest of which is uhhh... maybe 5 years old, I'm not sure, and the newest is less than a year old) bringing his total credit line from $500 to $27000.

I have an 800+ credit score (according to FICO as reported by my credit card issuer) and never carry a balance.  His mid-600's score rose by 40 points (according to Credit Karma) within days of my adding him.

One of my three cards asked for the last 4 of his SSN, the others just asked for his name, address, and birthdate.  All three cards are "major" credit cards.  Two of the card issuers mailed a card in his name to me, and one mailed it to him (we live together, but that was how the mail was addressed).

My credit score has and will remain unaffected (assuming he doesn't charge up a balance on my cards, which he won't).

My partner has no legal liability for any charges he makes on my cards, that liability remains mine (so don't do this for anyone you don't trust with your credit card), but the credit line and account length do show up on his credit reports and are factored into his score.  Likewise, if there was heavy utilization of the cards, that would affect his credit score (even though he wouldn't be liable to PAY the charges).  Also, I were to make late payments on the cards for which he is an authorized user, that would hurt his credit score as well as my own.  But he could at any time call the card issuer and have his name removed as an authorized user, which would make the card disappear from his credit history.   So basically, if I were to fuck up royally and start charging up high balances and making late payments, he could get that off his credit history immediately and go right back to where he was before I added him.

I could remove him at any time as well.  However, any charges he were to make during the time he was an authorized user would still be my responsibility to pay.

As I understand it, a good way to build credit is to take advantage of the bump in credit score as an authorized user on someone's high-limit, low-balance, long standing credit card, and then apply for a better (higher limit) credit card on your own that you might not have qualified for before.  Or apply for a credit line increase on cards you already have.  That way, you'll be building credit history on your own card.

frugaliknowit

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Re: Authorized user for building credit?
« Reply #25 on: April 17, 2018, 01:49:42 PM »
Why is your credit score so low?

Personally, I wouldn't bother commingling credit/credit cards.  Just let time and good practice get your credit score up...

Credit doesn't make you wealthy.

boarder42

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Re: Authorized user for building credit?
« Reply #26 on: April 17, 2018, 01:55:14 PM »
Why is your credit score so low?

Personally, I wouldn't bother commingling credit/credit cards.  Just let time and good practice get your credit score up...

Credit doesn't make you wealthy.

this is a shitty and combersome way to build credit.

as to the OP no clue wait a month and look at your credit report and see if it changed.

dylbertiii

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Re: Authorized user for building credit?
« Reply #27 on: April 17, 2018, 02:43:40 PM »
I just recently added my partner as authorized user to my three credit cards (the oldest of which is uhhh... maybe 5 years old, I'm not sure, and the newest is less than a year old) bringing his total credit line from $500 to $27000.

I have an 800+ credit score (according to FICO as reported by my credit card issuer) and never carry a balance.  His mid-600's score rose by 40 points (according to Credit Karma) within days of my adding him.

One of my three cards asked for the last 4 of his SSN, the others just asked for his name, address, and birthdate.  All three cards are "major" credit cards.  Two of the card issuers mailed a card in his name to me, and one mailed it to him (we live together, but that was how the mail was addressed).

My credit score has and will remain unaffected (assuming he doesn't charge up a balance on my cards, which he won't).

My partner has no legal liability for any charges he makes on my cards, that liability remains mine (so don't do this for anyone you don't trust with your credit card), but the credit line and account length do show up on his credit reports and are factored into his score.  Likewise, if there was heavy utilization of the cards, that would affect his credit score (even though he wouldn't be liable to PAY the charges).  Also, I were to make late payments on the cards for which he is an authorized user, that would hurt his credit score as well as my own.  But he could at any time call the card issuer and have his name removed as an authorized user, which would make the card disappear from his credit history.   So basically, if I were to fuck up royally and start charging up high balances and making late payments, he could get that off his credit history immediately and go right back to where he was before I added him.

I could remove him at any time as well.  However, any charges he were to make during the time he was an authorized user would still be my responsibility to pay.

As I understand it, a good way to build credit is to take advantage of the bump in credit score as an authorized user on someone's high-limit, low-balance, long standing credit card, and then apply for a better (higher limit) credit card on your own that you might not have qualified for before.  Or apply for a credit line increase on cards you already have.  That way, you'll be building credit history on your own card.

Thank you for such a detailed response. I really appreciate this.

dustinst22

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Re: Authorized user for building credit?
« Reply #28 on: April 22, 2018, 06:44:45 PM »
Au doesn't count against 5/24

Most definitely does.

My wife and I leap frog with churning, and we have to be strategical on the AU stuff for Chase specifically. 

In any case, looks to me like the OP shouldn't worry about this since she is in rebuilding mode.