Authorized User Question

[Bades]

I heard you can be put on someone else's credit card(who has good credit) as an authorized user, to help your own credit score out...

If that person however has bad credit and you are an AU on it, will that harm your credit score?

[disneysteve]

Yes. It works both ways. Of course, why would you want to be an AU on an account with someone who has a lousy credit score?

This is why many warn against this practice. If the other person on the account goes out and racks up a bunch of debt and doesn't pay on time, or at all, it affects you. Not what you want to happen.

[Joi]

Another thing to keep in mind is, if you don't share an address or are not immediately related the account holder, the account most times will not appear on your credit report.

[minnie1928]

I thought this was changed and that authorized users no longer "benefitted" from the original credit file.

[kork13]

I thought this was changed and that authorized users no longer "benefitted" from the original credit file.

That was my understanding as well... When Fair Isaac changed the formula and such in 2008 (or whenever), I thought they made it so that this strategy no longer worked to boost a person's credit.

[disneysteve]

That was my understanding as well... When Fair Isaac changed the formula and such in 2008 (or whenever), I thought they made it so that this strategy no longer worked to boost a person's credit.

There is another thread discussing this. There is still a policy on authorized users. They just tightened it up to cut down on companies selling access to good accounts to boost credit scores of total strangers.

[Joi]

Yes as long as you share an address or are immediately related, it will show on your CR. However, loan officers and underwriters usually don't included these AU accounts when accessing whether you will be offered credit. Also not all FICO scoring models use AU accounts when calculating your score. The classic FICO model used when you get your score from myFICO does.