FICO 08- Who is defined as a "genuine authorized user?"

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rossmo
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FICO 08- Who is defined as a "genuine authorized user?"

Postby rossmo » Mon Aug 20, 2012 9:22 pm

Here is a quote from another credit card forum:

Only Genuine Authorized Users Benefit

"In September 2007, FICO took away this piggyback privilege to prevent people from abusing the system. After enough people complained that this was unfair to legitimate authorized users, FICO amended their scoring model to account for genuine authorized users. Basically, if you are a genuine authorized user, such as a spouse or child, you will see a benefit from this shared credit."



Couple of questions here:

1-Can you tell me exactly who is defined as a "genuine authorized user?"
I understand that a teenager with little to no credit history would most likely qualify as an authorized user on their parents accounts, or a spouse being added could be viewed as genuine. This leads me to my second question:

2-As of this post, my fiance and I do not live together-- If she were to add me as an authorized user to one of her cards, would I be considered a "genuine AU?" Do you think if we started living together (ie, had the same home address on our credit reports) the credit scoring formula would take that into consideration and then consider me a "genuine AU?"

3-Which is better to be added as an authorized user: a Chase UnitedMiles Plus card (7k limit, Account opened 1/2012) OR a Bank of America Card (18k limit, Account opened 5/2003)?


Any thoughts on this are much appreciated! Thanks!
Credit Union Visa: $5000 (4/11)
Discover IT $1750 (10/12)
Chase Freedom $1500 (3/13)
BofA Credit Card: $18.7k (1/02) (Authorized User)
Secured CapOne Visa: $300 (5/12)
Banana Republic Store: $1200 (5/11)
Express Next A-List: $1340 (6/11)

FICOS (as of 3/15/12):
EQ 762
EX 731
TU 747


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djrez4
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Postby djrez4 » Mon Aug 20, 2012 10:39 pm

The answer to #3 is the 9-year-old B of A account. What do I win?
[RIGHT][size=100]- Sapphire Preferred - Freedom - Ink - Platinum - Everyday Preferred -[/size]
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Crashem
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Postby Crashem » Mon Aug 20, 2012 11:01 pm

Fico isn't revealing how they determine who is genuine and even genuine how they discount. All of it is unclear. It won't hurt. Just might not help. Also lenders themselves might discount
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

rossmo
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Postby rossmo » Tue Aug 21, 2012 3:18 pm

Why the Bank of America card? Does the longer history/higher limit outweigh the fact that Chase is a "top tier" bank?

Assuming I did choose to be an AU on the Chase card, would that help me to get my own Chase card in the future?
Credit Union Visa: $5000 (4/11)
Discover IT $1750 (10/12)
Chase Freedom $1500 (3/13)
BofA Credit Card: $18.7k (1/02) (Authorized User)
Secured CapOne Visa: $300 (5/12)
Banana Republic Store: $1200 (5/11)
Express Next A-List: $1340 (6/11)

FICOS (as of 3/15/12):
EQ 762
EX 731
TU 747

Crashem
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Postby Crashem » Tue Aug 21, 2012 7:15 pm

Rossmo, Yes to BofA. No to Chase question. Chase doesn't really even know you exist as AU. Just some random name. CRAs do the work of linking your name to your credit file. As for why BofA, FICO doesn't register the difference between lenders. A trade line is a trade line to FICO score. Older and bigger and cleaner is better. Also, not sure if Chase is considered a "higher" tier lender than BofA
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

rossmo
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Postby rossmo » Tue Aug 21, 2012 8:52 pm

Thanks! Really appreciate the advice!
Credit Union Visa: $5000 (4/11)
Discover IT $1750 (10/12)
Chase Freedom $1500 (3/13)
BofA Credit Card: $18.7k (1/02) (Authorized User)
Secured CapOne Visa: $300 (5/12)
Banana Republic Store: $1200 (5/11)
Express Next A-List: $1340 (6/11)

FICOS (as of 3/15/12):
EQ 762
EX 731
TU 747

Heather L
 
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Location: Denver

FICO 08 has not change the method of piggybacking.

Postby Heather L » Wed Aug 22, 2012 12:57 pm

1. There is no such thing as a genuine authorized user. You do not have to be relative or even live in the same house to benefit from being an authorized user on someone's existing credit card account. The Fair Isaac Corporation has given congressional testimony that they cannot ignore authorized user accounts when calculating someone's credit score for lending purposes. Nothing has changed, piggybacking is here to stay.

2. You do not have to wait until you and your finance live together to benefit from adding each other as an authorized users to your existing credit card accounts.

3. I would add yourself to the BofA account because it has the longest history out of the two cards. The longer the payment history and the higher the credit limit on the cards the bigger the boost you will see in your credit score. Make sure the cards always have a low balance (10% of less of the credit limit). Thanks! Heather with BoostMyScore.NET

rossmo
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Postby rossmo » Sat Aug 25, 2012 1:43 pm

Ok! I have been added as an AU on the Bank of America card with 18K limit (and a super low balance)!

Does this mean when it shows up on my credit report that it will be a factor in my overall credit utilization?
Credit Union Visa: $5000 (4/11)
Discover IT $1750 (10/12)
Chase Freedom $1500 (3/13)
BofA Credit Card: $18.7k (1/02) (Authorized User)
Secured CapOne Visa: $300 (5/12)
Banana Republic Store: $1200 (5/11)
Express Next A-List: $1340 (6/11)

FICOS (as of 3/15/12):
EQ 762
EX 731
TU 747

Crashem
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Posts: 538
Joined: Fri Mar 09, 2012 9:29 am
Location: San Francisco, CA

Postby Crashem » Sat Aug 25, 2012 2:08 pm

rossmo wrote:Ok! I have been added as an AU on the Bank of America card with 18K limit (and a super low balance)!

Does this mean when it shows up on my credit report that it will be a factor in my overall credit utilization?


It depends. FICO 04 and older, it should. Please note internal lender scoring models might discount and ignore AU accounts even if FICO doesn't. Also, you need to see if it shows up. What is the relation of the original card holder to yourself and do you share an address or have you ever shared an address.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

rossmo
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Postby rossmo » Sat Aug 25, 2012 2:27 pm

Card Holder is my fiance. We do not share an address at this time but we will be sharing an address as of September 1st (1 week away).
When she called BofA to add me as an AU, BofA said they said they could only have 1 address on file, so we gave them my name, my SSN and our new address (again, we will be living there in 1 week).

Why? What are your thoughts on how will affect me, Crashem? (thanks in advance!)
Credit Union Visa: $5000 (4/11)
Discover IT $1750 (10/12)
Chase Freedom $1500 (3/13)
BofA Credit Card: $18.7k (1/02) (Authorized User)
Secured CapOne Visa: $300 (5/12)
Banana Republic Store: $1200 (5/11)
Express Next A-List: $1340 (6/11)

FICOS (as of 3/15/12):
EQ 762
EX 731
TU 747



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