How does being an authorized user on a credit card account affect your own credit? I see the bal on my report?

Answer 1

Experian, Equifax and TransUnion. These three credit bureaus are responsible for reporting your credit scores to banks and other lending institutions. The basic idea behind reporting and tracking your credit history is to get an idea on how prompt and reliable a person is in repaying the loans.

The three digit credit score is one of the most important numbers that you will require for getting any loan. A good credit score means low interest rates, better and bigger loans and easy repayment options. On the other hand, low credit score means the opposite.

Your credit score is updated regularly. So, don't even think of missing a payment to the lenders. Default on this front could cause a shift in your credit scores and thereby make the loans dearer. Checking your credit score regularly, guards you against any such unpleasant situations. Credit reporting agencies are bound by law to send you a free credit report every year when you ask for it.

Credit reports can be questioned and got corrected if found incorrect. Keeping track of every single financial transaction and repayment detail will help you confront the credit rating agencies, when you find any discrepancy in your credit report. Being proactive in tackling such situations with ample proofs to substantiate your point will keep your credit report clean. Readmore from: http://www.credit-card-gallery.com/free_credit_report_no_credit_card.html

Answer 2

Depending on the history of the account, the credit card will help your credit report by helping in the areas of length of credit history and available credit versus debt. If the length of the card is a good length and the person had used only about 30% of their balance, then these two items directly affect your score and will increase it accordingly. Most people who do this, don't have a long credit history and don't have any credit (or much).

I added someone and it boosted their score dramatically.

Come september, Fico will roll out a new formula to one of the bureaus. This will no longer include adding Authorized Users in their model. however the other two bureaus won't receive this update until sometime in 2008 and depending on what you are trying to do, the benefits of being added are still very useful until then.

Oh yeah, when you are added, I would suggest applying for a credit card with your increased score for a low interest rate and then you can begin to build your own credit history. You'll be glad you did this in 5 years or so.

Good luck ;)

Answer 3

ANY account that appears on your credit report affects your report as if you were the sole owner of the account. Type a ownership of the account is NOT part of the FICO formula.

Answer 4

Yes you will see the balance on your credit report and it will effect your credit scores. Parents will sometimes use this method to give a young adult a good start in building a good credit record. hope this helps:)