If I add an authorized user to my acct., why does it effect his score?

Question

I have a credit card & added my fiance as an authorized user, and when we went to buy a house that acct. showed up on his credit report! I pay everything on time & it did not negatively effect his score, but I am just wondering how/why that happens? I did not provide the card company with his SSN or anything, so how did they even link the authorized user card to him?

Answer 1

Sometimes a credit card holder will want to give another person (often a spouse, partner, or child) access to the account. Some credit applications even have a space for requesting an additional card with the other person's name on it, or the card holder can call or write and request one.

A business may have a corporate credit card account, and may give some employees authorized user status, including individual cards, to be used for business expenses. There may be wording in the employees' contracts specifying liability to the company for excessive or improper charges.

While a co-applicant is equally responsible for paying all charges on the account, regardless of who made them, an authorized user is not legally or contractually responsible for any charges, including those that s/he made. The primary cardholder (the one who actually applied for the card) is considered to be fully liable for all charges on the account, including those made by any authorized users. Verbal agreements or instructions between the primary cardholder and the authorized user do not change this. There can be a big difference between a moral/personal obligation and a legal/contractual one.

The account may appear on an authorized user's credit bureau reports, with a notation of their status. This may help in establishing or rehabilitating their credit rating, although not as much as an account that they are officially responsible for.

Answer 2

When a more than one person is subject having their names on a credit card, bank account, mortgage loans, and just about any other financial related account, the actions that are performed effect everybody's credit score. His credit score will not immediately be effected for just for being included on another account since he can not be given credit for you paying your bills on time before he is put on the account. Rather over time, after several payments, his score will go up assuming that you are paying full and on-time. But, keep in mind that if one of you make a late payment or load up debt on the card, both of your score will be directly effected and might go lower.

For the second question, if one person on the card already has a good creditworthiness, then a credit card company generally assumes that if another authorized user does not pay there still someone on the card that can. In this case, you were issued a credit card in the beginning because the credit card company deemed that you are creditworthy, so they consider you as safety net if your fiance screws up.

Answer 3

dear frnd for any bank credit details i hope dis ill helps u.