Author Topic: How does adding an authorized user affect your credit score?  (Read 623 times)

harvestbook

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How does adding an authorized user affect your credit score?
« on: October 31, 2019, 08:39:20 AM »
My wife wanted to add me as a user on her credit card so she could get a $50 bonus. My credit score is 811 and hers is 780-790 range, and I didn't want to risk damaging my score for a mere $50. I doubt if I will ever need the credit but it's worth it to me to preserve it.

On the flip side, how would mine or hers be affected if we added my daughter as an authorized user to help her build credit. She is 19 and in college and probably has no score at all, and is pretty responsible.

BikeFanatic

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Re: How does adding an authorized user affect your credit score?
« Reply #1 on: October 31, 2019, 08:51:47 AM »
I am no expert but I do help others improve their scores by adding them as an authorised user. I beleive my low balace to available credit ratio provides a large  part of the score calculation. I believe I saw the calculation on credit karma website.  I woul add dtr to both your card and to spouses.  As I said I add strangers to mine. For money, to boost their  scores,  it is called Tradelines.

Catbert

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Re: How does adding an authorized user affect your credit score?
« Reply #2 on: October 31, 2019, 11:42:47 AM »
By adding an AU the AU gets "credit" on his credit report only for the credit card he is an AU on not the other person entire credit history.  So if your wife hasn't had any late payments or other dings on that particular cc it shouldn't have much if any negative impact on you.  I guess it could drag down your average age of credit a bit but not enough to be noticeable impact on your high credit.

Adding your daughter as an AU especially on a long standing card would have a positive impact on her credit and no adverse impact on yours.  For example, she could go from having no credit history to having a 10 year credit card with perfect on time payments.


« Last Edit: October 31, 2019, 04:05:02 PM by Catbert »

TVRodriguez

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Re: How does adding an authorized user affect your credit score?
« Reply #3 on: October 31, 2019, 01:06:17 PM »
My wife wanted to add me as a user on her credit card so she could get a $50 bonus. My credit score is 811 and hers is 780-790 range, and I didn't want to risk damaging my score for a mere $50. I doubt if I will ever need the credit but it's worth it to me to preserve it.

On the flip side, how would mine or hers be affected if we added my daughter as an authorized user to help her build credit. She is 19 and in college and probably has no score at all, and is pretty responsible.

Well, that's, um, an interesting battle to choose.  You do realize that the difference b/t 790 and 810 is almost nil for lenders, right?  And that the score only counts for lenders?  Anyhow . . .

I've added people as authorized users who had horrible credit scores, and it never once affected mine to my knowledge. 

DH added me as an authorized user to one or more of his cards when we married--he had a low score at that time--and it did not affect my score at all.

FYI, I have a score that's been b/t 810-830 since forever.  DH's score was at most 715 at the time (might have been closer to 650).  It didn't matter.  To me or to the scorekeepers.

Bernard

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Re: How does adding an authorized user affect your credit score?
« Reply #4 on: October 31, 2019, 01:22:10 PM »
None.

Rule of thumb is that if you have a hard inquiry on your credit report, it's going to be about 5 points. I had a FICO of 841 and just added a card for travel hacking and my score dropped by 11 points to 830. It will go up to normal in a few months, based on the fact that I now have $17,300 more credit available so the percentage of usage of available credit actually declines, which is a positive movement for the credit score.

I encourage you to sign up with credit karma. It's free and you'll be always in the loop. Their inquiries are soft, so they have zero impact on your score.

solon

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Re: How does adding an authorized user affect your credit score?
« Reply #5 on: October 31, 2019, 01:52:28 PM »
The credit card owner's credit score is not, and can not, be affected by the user's credit score. Likewise, the user's credit score is not, and can not, be affected by the owner's credit score.

The user's score is affected by the presence of the new card on their report. If it's an old card with a high limit, the user's score will go up. But the user's score is completely unaffected by the owner's score.

So, if your wife's card is old and high, your score will go up a little - because of the card, not because of her score. But even if it goes down a little it won't have any affect on rates lenders offer you.

You and your wife's scores will not be affected by adding your daughter as a user, but her score will go up because of the new card.

kpd905

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Re: How does adding an authorized user affect your credit score?
« Reply #6 on: November 01, 2019, 03:44:20 AM »
It will not do anything to your credit.  Even if it did, if you do not plan to take out a loan in the next 3-6 months it wouldn't matter anyway.  Especially when you are starting over 800.  Generally a 760 will get you the best rates for any loan.

harvestbook

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Re: How does adding an authorized user affect your credit score?
« Reply #7 on: November 01, 2019, 08:33:18 AM »
Thanks, everyone. Good info.