Will Being An Authorized User Help My Credit Score?

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tvirk888
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Will Being An Authorized User Help My Credit Score?

Postby tvirk888 » Tue Oct 15, 2013 1:00 pm

I just became an authorized user on a family member's Amex Business Gold. They usually have a bill of about $100K per month, and pay it off. They've had it for a few years now, but will there activity change my credit score?

I've read that if they don't make a payment on time, or something else negative, it will also show on my score, but will this card boost my score? I am trying to buy a condo in a couple of months.

I am also planning on applying for the Discover IT card, and Chase Freedom card, since I only have a Wells Fargo card, and a car loan through Chase.
Amex BCE - $20K (11/2014)
Amex Everyday - $20K (04/2015)
Amex Business Gold - NPSL (09/2013)
Bank Of America Cash Rewards - $5K (11/2014)
Chase Freedom - $11,700 (10/2013)
Chase Sapphire Preferred - $18K (11/2014)
Citi Thank You Preferred - $10K (11/2014)
U.S. Bank Cash+ - $5K (03/2015)
Wells Fargo Platinum Rewards - $4700 (05/2009)


mdl28
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Postby mdl28 » Wed Oct 16, 2013 10:51 pm

Depends, if your SS# was provided for the authorized card then yes it's possible. If no SS# was supplied then no, it will not help nor negatively affect your credit.
MDL

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tigerowl06
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Postby tigerowl06 » Wed Oct 16, 2013 11:02 pm

tvirk888 wrote:I am also planning on applying for the Discover IT card, and Chase Freedom card, since I only have a Wells Fargo card, and a car loan through Chase.


That's a lot of stuff you're applying for. Good luck. Since you want the condo and maybe the car loan soon, apply for those before the CCs.
Chase Freedom ($2.5K, 10/2009)
Discover it ($6K; 03/2011)
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tvirk888
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Postby tvirk888 » Thu Oct 17, 2013 10:48 am

mdl28 wrote:Depends, if your SS# was provided for the authorized card then yes it's possible. If no SS# was supplied then no, it will not help nor negatively affect your credit.


Yeah, the website asked for my SS#.
Amex BCE - $20K (11/2014)
Amex Everyday - $20K (04/2015)
Amex Business Gold - NPSL (09/2013)
Bank Of America Cash Rewards - $5K (11/2014)
Chase Freedom - $11,700 (10/2013)
Chase Sapphire Preferred - $18K (11/2014)
Citi Thank You Preferred - $10K (11/2014)
U.S. Bank Cash+ - $5K (03/2015)
Wells Fargo Platinum Rewards - $4700 (05/2009)

tvirk888
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Postby tvirk888 » Thu Oct 17, 2013 10:49 am

tigerowl06 wrote:That's a lot of stuff you're applying for. Good luck. Since you want the condo and maybe the car loan soon, apply for those before the CCs.


I am only applying for two cards, no car loan.
Amex BCE - $20K (11/2014)
Amex Everyday - $20K (04/2015)
Amex Business Gold - NPSL (09/2013)
Bank Of America Cash Rewards - $5K (11/2014)
Chase Freedom - $11,700 (10/2013)
Chase Sapphire Preferred - $18K (11/2014)
Citi Thank You Preferred - $10K (11/2014)
U.S. Bank Cash+ - $5K (03/2015)
Wells Fargo Platinum Rewards - $4700 (05/2009)

DoingHomework
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Postby DoingHomework » Thu Oct 17, 2013 1:42 pm

This is a tough question and there is a great deal of incorrect information out there. If you are an authorized user then you will ordinarily NOT get to piggyback of your family's credit. If you are a joint account holder you might. Your SSN may have been required either way. Also, realize that there have been very recent changes on how banks handle joint accounts vs. authorized users (recent=late this past summer). In general, if you are not personally making payments from your own account toward the bill and if you are not personally liable for the full debt if the business does not pay then you will not get to use the business history as yours. Since teh new rules are still being implemented you might get away with things for now though.

Crashem
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Postby Crashem » Fri Oct 18, 2013 3:18 am

Couple of things:

1) if this is business Amex, it will not show up on your report so it will not help your credit.

2) fico 04 scoring model which is the one used by mortgage lenders take AU accounts into account for scoring purposes. Obviously underwriter will deny an applicant whose only good accounts are AU. However, if a couple of AU accounts out of many good accounts nudges your score to level to get lowest interest, I think you are good. For credit card apps, most significant sized lenders have somewhat customized or fully customized scoring models that discount AU accounts from a little to almost ignoring them.

So add AU accounts that you think will help you. Avoid Amex if apping for mortgage soon as Amex AU accounts report open date as when card was issued which reduces aaoa. Other cards AU accounts duplicate the original trade line with AU notation including open date etc.
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DoingHomework
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Postby DoingHomework » Fri Oct 18, 2013 9:42 am

Crashem wrote:2) fico 04 scoring model which is the one used by mortgage lenders take AU accounts into account for scoring purposes.


You might want to check on this. My understanding is that using AU account was a source of major mortgage "fraud" - actually more like gaming the system. The new rules are changing that so that only accounts for which someone is financially fully liable (i. e. true joint accounts) may be used to qualify for mortgages. The rules have not been fully rolled out and some lenders may still use the old rules. But expect changes. I don't work in the industry and could be wrong. But that's what I have been told by at least two people who do work in the industry including one bank examiner.

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jumbo
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Postby jumbo » Fri Oct 18, 2013 10:59 am

mdl28 wrote:Depends, if your SS# was provided for the authorized card then yes it's possible. If no SS# was supplied then no, it will not help nor negatively affect your credit.


Is there a way to add AU without supplying the SS#?
I recently added my brother as an AU on my Gold Delta, and his SS# was required. I could not skip the SS# field while ordering the additional card online.
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jmtdallastx
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Postby jmtdallastx » Fri Oct 18, 2013 11:49 am

When I made my wife an AU on my SPG and BCP it did ask for her SS# though it never showed up as inquiries on her credit file.



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