Authorized User?

Question

I have my mom to co sign on me on an auto loan. But because of my good income I think it would be better if I just get added as an authorized user to her credit cards and I go and apply for the auto loan.

How do I work out getting all of her credit history. Just get added and her history from the credit cards goes on my credit report correct? Fill me in please. Thanks

Jedi Master is an idiot!

People saying that it does nothing are absolutely incorrect. I was added to her AMEX as an Authorized User and her full history for 6 months was put on my credit report; Get your facts straight ECHO is correct

Answer 1

just being added as an authorized user will do nothing for your credit rating as you are not responsible for paying the bill

Answer 2

I know that the bank I work for issues credit card for authorize buyers but it will not report to the credit bureaus. Since you are only an authorized buyer you are not legally responsible for the account. You can be removed from the account at any time. If you want credit history to show on your credit you would have to be added as a joint account holder which means that you will be responsible for the account and all payments, balances will show on your credit. This also means you are not able to be removed from the accounts once you become a joint account holder. You should also consider applying at banks that offer credit card for people with no credit. Some credit cards will show on your credit and it will say that you are an authorize buyer, but this will not help you build credit since you are not an account holder.
I hope this helps you. One more thing don't apply for too many credit cards, I see this every day people with no credit trying to build credit and when they are done the have too many credit cards, this will only hurt your credit.

Answer 3

Actually, echo is wrong and the other guy is right. Whatever your mother has done with credit will not show up on your report. Only those cards that you sign onto as a joint user (responsible for payment) will show up on your report. An authorized user is not financially responsible for the debt, and does not get reported.

As for borrowing money at all; it is a bad idea. If your income is so good, you should save up and pay cash for a car.

If you paid $1000 for a crappy car today and made car payments to yourself, you could buy a $4000 car in ten months (cash). In ten more months, you could buy an $8000 car, ten more months, you could buy a $12000 car.

If you finance a car today, in three years you will own a three-year-old car that you paid $12000 for and is worth $5000. If you save and move up, you will own a paid-for $12000 car that is worth $12000 because it will be brand new. Where do you want to be in 3 years?

The question is, do you want to make car payments for the rest of your life?

Answer 4

uhh...

in a word ...

no...

they are her credit cards, she is the one responsible for making the payment, so its her credit report. there is nothing transferable. you need to build your own credit. most banks will issue a card with about a $300 limit on it, just tell them that you need it to start to establish credit. that is if you are over 18...

and credit history is confidential even to a spouse...

===EDIT===

well...

an AU is nothing more than a person with a charge plate for SOMEONE ELSE'S ACCOUNT. it is NOT your card. the person with the account, your mom, signed an agreement when she took the card. SHE is responsible for any purchases YOU make, but in the end the card company will come after HER not YOU... you and Echo are wrong...

Answer 5

jedimaster is wrong.

When a person is added as an AU to credit cards, they will have the full and complete history of the account reporting on their reports.

Just be sure when your mom adds you as an AU, to request that it report on your reports. She will have to give them your SSN.

Also be sure that you are added as an AU and not as joint !!!

You will have to wait until the companies update before it starts showing on your reports, which could take a month or so.

edited to add: once they start showing on your report, you might get a better deal for a car loan through your bank or credit union than you would through the dealers financing options.

second edit:

Well normobrian........Since you say that they don't list AU's, why don't you contact all of the credit card providers on the upcoming list and tell them they are wrong in listing AU's and listing them with the full history of the account. I dunno, maybe they will listen to you and quit.

A partial list of different companies that DO list AU'S and also list the full account histories on the AU's credit reports (no I'm not talking about joint, even though they also report joint, I'm talking about AU's!!!):

GEMB
CitiBank
MBNA
HSBC
Bank of America
Amex and Discover does on many of their cards


Third edit.......... Yeaaaaa jacob. Just make sure that your mom keeps her utilization down on that card and any others that she adds you to.

Another little hint: when you go car shopping, keep an eye on your reports. If the credit companies pull more than one inquiry (which they seem to like to do with auto/home loans) contact them and ask them to combine the inquiries into one.

After you have had the car loan for about 4 to 6 months or so, try to get your own cards. You can go to Bank of America, Orchard Bank and HSBC websites and do the card selector that they have. It will not pull a hard inquiry unless you actually apply for the card that may be recommended.

But, do not apply for anything until after you get your car loan. I would also suggest trying BoA first before the other two. BoA will grow with you while the other two won't. In fact, depending on your scores and reports, you might be able to just bypass Orchard and HSBC and concentrate on better cards

Then after you have your car loan and a couple of your own cards, you can slowly weed out the AU cards, if you want to that is.

Most of what I've learned, I've learned from the site I've listed (along with the government FTC, FCRA, FDCPA etc sites)

You might check out the credit forum. While some of the forum is used by people who are dealing with baddies on their reports, there are many people who are either building/rebuilding their credit or people who already have excellent credit and are just looking for the next best rewards card. Many people talk about their experiences with the cards and card companies.

There is also an automotive forum that you might check out. There is alot of useful info in there that may aid you when you car shopping, apply for loans etc.

All of the info on creditboards is free to use. Plus it is a non spam site. You will not be hit on by people trying to get your business. The owners of the site are extremely strict about keeping people like that off of the site.



Yet another edit:

jedimaster -
Of course an AU is on someone else's account.
Of course it is not "his" card.
Of course his "mom" is the one that is liable for the account.

No where in jacob's question does he ask about the ramifications of USING an account he is an AU on.

From what I have read in his question, he is ONLY asking about using the HISTORY on the account NOT using the account for purchases !!!!!!

It's obvious that you have totally misread jacob's question since you are talking about him MAKING PURCHASES on his moms card.