Increase score by adding cards as authorized user?

For just about anything you want to get off your chest about credit cards.
12 posts
Crashburn
Green Member
Green Member
 
Posts: 19
Joined: Fri Feb 20, 2015 11:13 am
Location: IL

Increase score by adding cards as authorized user?

Postby Crashburn » Wed Apr 29, 2015 8:33 am

My husband and I moved to the US 6 months ago and have been working on increasing our score since then. Today we both have 2 secured credit cards.

I have these:

Since Oct 14 - BoA Mastercard - 7500$ credit line
Since Feb 15 - C1 Mastercard - 200$ credit line

He has:

Since Oct 14 - BoA Mastercard - 2500$ credit line
Since Feb 15 . C1 Mastercard - 200$ credit line

We're now wondering if adding each other as authorized user on all of these card might help our score. Main goal would be to increase our number of credit lines from 3 (we also each have a car financing under our name) to 5.

Does anyone have experience with this? Would the AU cards count as regular credit lines?

And would there be hard pulls for adding each other as Authorized users?

Thanks in advance!


User avatar
Vattené
Centurion Member
Centurion Member
 
Posts: 1157
Joined: Sun Jan 26, 2014 3:55 am
Location: US

Postby Vattené » Wed Apr 29, 2015 2:34 pm

The good news is there is no downside to adding each other as AUs, but the bad news is the upside is pretty minimal.

There is no inquiry for the AU since the primary account holder is still solely responsible for payment, so I'd recommend going ahead and adding each other. The tradelines will show up on credit reports, but as "authorised user" rather than "individual account" or whatever the precise phrasing is. Put simply, it won't be given the same weight as your own tradeline, but it should help your score marginally depending on the particular model.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

Vermonster
Centurion Member
Centurion Member
 
Posts: 725
Joined: Mon Oct 01, 2012 11:09 pm
Location: NJ

Re: Increase score by adding cards as authorized user?

Postby Vermonster » Wed Apr 29, 2015 3:24 pm

I would add each other as an AU for now. But I would plan on adding each other as Joint Card Members. I'm not sure if you can on secured cards, but it is worth trying.

A Joint card helps a lot more than an AU. Some creditors will ignore AU accounts as they aren't the best example of your individual credit worthiness. Some AU cards won't even show up on your credit report.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

Crashburn
Green Member
Green Member
 
Posts: 19
Joined: Fri Feb 20, 2015 11:13 am
Location: IL

Re: Increase score by adding cards as authorized user?

Postby Crashburn » Wed Apr 29, 2015 4:34 pm

Thanks for the replies!! I will look into the joint user topic. If that helps more and if it's possible on secured cards that might be even better.

Looks like we might be able to make a few more points either way though. Cool!

takeshi
Centurion Member
Centurion Member
 
Posts: 1733
Joined: Wed Jun 05, 2013 3:12 pm
Location: US

Re: Increase score by adding cards as authorized user?

Postby takeshi » Thu Apr 30, 2015 11:20 am

Crashburn wrote:Does anyone have experience with this? Would the AU cards count as regular credit lines?

It can help but I don't recommend counting on it. You each have to build you own credit even if you add each other as AU's.

Crashburn wrote:And would there be hard pulls for adding each other as Authorized users?

Nope. You're not opening new credit accounts. You're just adding an AU.

Vermonster
Centurion Member
Centurion Member
 
Posts: 725
Joined: Mon Oct 01, 2012 11:09 pm
Location: NJ

Re: Increase score by adding cards as authorized user?

Postby Vermonster » Thu Apr 30, 2015 11:39 am

Just to confirm. Credit Karma shows the Kohls card I'm an AU on, and it factors that into my score. But Experian's Credit tracker, and the reports from TU and EQ have no mention of it.

My joint accounts on the otherhand report fully.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

Crashburn
Green Member
Green Member
 
Posts: 19
Joined: Fri Feb 20, 2015 11:13 am
Location: IL

Re: Increase score by adding cards as authorized user?

Postby Crashburn » Fri May 01, 2015 8:04 am

I googled the joint user option a bit and it sounds like we then might need to provide SSN etc which would imply a hard pull. Any experience with that? If adding joint users means a hard pull then we'll go with the AU cause we prefer taking hard pulls later this year when we try to go for a Chase freedom or store cards.

Vermonster
Centurion Member
Centurion Member
 
Posts: 725
Joined: Mon Oct 01, 2012 11:09 pm
Location: NJ

Re: Increase score by adding cards as authorized user?

Postby Vermonster » Fri May 01, 2015 8:35 am

Crashburn wrote:I googled the joint user option a bit and it sounds like we then might need to provide SSN etc which would imply a hard pull. Any experience with that? If adding joint users means a hard pull then we'll go with the AU cause we prefer taking hard pulls later this year when we try to go for a Chase freedom or store cards.

It really depends on the creditor. When we did it with Chase I added my wife as an AU first, then a few months later added her as a joint user. No hard pull for her as they didn't increase the credit line. Every Creditor has teh right to pull a report if they want, so it would be best to ask the CSR if you can do it without a hard pull. They should be able to tell you.

As for apping later in the year; I doubt an extra inq will prevent a Freedom approval, and store cards should be very easy to get if you are able to get a Freedom.

I would risk the hard pull now (or at least ask about it), because it will have a direct impact on your credit report. If you can wait 6 months to app for the Freedom, then the Inq will be meaningless.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

Crashburn
Green Member
Green Member
 
Posts: 19
Joined: Fri Feb 20, 2015 11:13 am
Location: IL

Re: Increase score by adding cards as authorized user?

Postby Crashburn » Wed Jun 10, 2015 11:37 am

An update from our side.: We decided to give it a try and add my husband as an AU on my BoA card (credit limit: 7500, his highest up to then was 2500) - his credit score was around 700ish and he gained 15 points with the addition. No credit check done but he did need to provide his SSN.

He's now going to add me on his card. I expect a smaller increase in score for me a his credit limit on the card isn't as high. We're also going to add each other on the Capital one cards. It took about 3 weeks for the BoA AU card to show up on my husband credit reports so I should have an update in about 3 weeks on how the others affected our scores. We're mainly doing it to increase the line of credits we have at the moment.

So far it seems to work well.

Vermonster
Centurion Member
Centurion Member
 
Posts: 725
Joined: Mon Oct 01, 2012 11:09 pm
Location: NJ

Re: Increase score by adding cards as authorized user?

Postby Vermonster » Wed Jun 10, 2015 11:46 am

Just be warned that sometimes adding an AU can make your score decrease a bit. It is mostly if it is a new account and you have a thin file, your AoAA can be reduced. This is temporary and you should see greater increases over time. Plus it helps to have a lot of accounts aging at the same time so when you do add a new account later, it doesn't hurt as much.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests