I was reading somewhere that said if you have someone with good credit add you to their credit card as authorized user if will improve my credit score. Do you have to actually use the card or just order it? Is this true???
2007-06-12 07:21:35 · 9 answers · asked by littlemaltese 1 in Business & Finance ➔ Credit
Just get added, but that's going to change come September when the rules for scoring change.
2007-06-12 08:39:29 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Anyone added on to someone else's credit card as an authorized user automatically gets the payment history, immediate status, and feedback from that card on their credit report.
I just did this a year ago for someone and their score went up significantly. Not only did it help raise their score, it established their credit and made it so they could get their own higher valued credit. They did not get their own account number, the credit card with their name had the exact same account listed as my original one.
When I added the person on to my account, all I provided was their first name without address or social security. However, when they pulled their credit to purchase a house, all my account's history was there too.
On another note, when the person needed one of my credit cards to be removed from their report, I deleted them and the history disappeared in the next month.
Hope this helps.
2007-06-12 07:29:41 · answer #2 · answered by Cath22 1 · 0⤊ 0⤋
It's true for now. By September the rules will going to change but they have to figure out how they are going to tell the difference between genuine authorized users like me on my Mom's Discover card and the ones that simply bought the lines of credit to raise their scores.
2007-06-12 07:36:39 · answer #3 · answered by ? 7 · 0⤊ 0⤋
This scam is being investigated by the government, and the three major credit reporters are already in the process of changing their computerized rating systems to no longer reflect the fact that someone has added you as an authorized user.
The whole thing started when a sharp individual discovered that being added as an authorized user reflected on your credit score.
2007-06-12 07:26:03 · answer #4 · answered by acermill 7 · 0⤊ 0⤋
In most of this deals you're added as an authorized user for someone with GREAT credit. Not only do you not get to use the credit, you don't even get the account number.
2007-06-12 07:24:44 · answer #5 · answered by Oh Boy! 5 · 0⤊ 0⤋
it does work, however if this person ever fails to pay on this debt it works the other way around. it will improve your credit score some, but if they are willing to put you as coapplicant it will actually help you more. You do not have to use the card but it will take up to 60 days to show up on your credit report.
2007-06-12 07:24:54 · answer #6 · answered by BobbyK 4 · 0⤊ 0⤋
Yes. At the time my sister had great credit so I ask her to put me on some her accounts and it worked!! She just gave them my information, social security number, date of birth, ect. and then requested that a card will not be mailed to me since I wasn't going to use the credit card. If you want to use the card then that is up to the person who is allowing you on their account. Please be responsible if they do give you one because you could ruin both of your credit reports.
2007-06-12 07:27:38 · answer #7 · answered by Fashionista89 1 · 0⤊ 0⤋
This is true as long as they are paying as agreed. This will become part of your debt to income ratio as far as the payment wi concerned. It is up to how the financial institute is reporting it to the different Credit Bureaus. Nothing is in stone :)
2007-06-12 07:25:54 · answer #8 · answered by Grandma6 1 · 0⤊ 0⤋
You realize this will have an equal and opposite impact on your credit score, right?
2016-04-01 03:49:15 · answer #9 · answered by Anonymous · 0⤊ 0⤋