Do authorized users build credit?

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4 posts
kayo
 
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Do authorized users build credit?

Postby kayo » Mon May 28, 2012 1:31 am

I have no credit history at all. If I have a parent set me up as an authorized user on an Amex card, will it contribute to the building of my credit score or not?

I've read that it will and that it absolutely will not, both in various articles and on this very site, so I'm confused.


Meltdownblitz
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Postby Meltdownblitz » Mon May 28, 2012 2:24 pm

Yes, I'm pretty sure it contributes to your credit score and history.

Crashem
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Postby Crashem » Mon May 28, 2012 2:39 pm

It will help. Most fico scores take into au accounts. But don't fool yourself. Let's say you are au on 3-4 great cards. Your fico score may say in the high 700s, but you will still get rejected by a lot of people. Card issuers know about the authorized user game and somehow take it into account when they are doing approvals.

Bottom line is that no harm in getting on as au as long as history is positive on card. But you should discount its help as card issuers seem to also. Also yes get on Amex and register card online to lock in your member date. Personally, if they have charge card, do that card as you don't need to worry about utilization affecting credit score. Amex seems to take au cards from Amex into account more heavily as they can track au usage via own card number. If parents have old visa/mc card that hardly sees use, have them add you to that.
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kayo
 
Posts: 2
Joined: Sun May 27, 2012 10:01 pm
Location: USA

Postby kayo » Mon May 28, 2012 10:17 pm

Thanks for the advice, very useful!

So... when I become an authorized user, does my history and credit score basically become a clone of my parent's? Or will my score be some arbitrary number, lower than theirs?

Your fico score may say in the high 700s, but you will still get rejected by a lot of people
Because they can see that I'm an AU? Or because a high 700s credit score wouldn't have been good enough for a lot of people anyway?

yes get on Amex and register card online to lock in your member date.
Can you please elaborate on why this is a good idea?

If the card has an annual fee, and I'm added as an AU, do we both have to pay the fee?

More than becoming an AU, I'm actually interested in starting a joint account with a parent, in order to be more responsible for the account (something which hopefully credit agencies would take note of?). However, I'm not sure if Amex allows that; I've read that they only allow AUs.



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