Authorized Users and Credit Score

[Andrew]

For the purpose of MS I am becoming an authorized user on a few cards (cash back) that are in my fiancée's and mother's names.

The question I can't seem to find an answer to is whether or not becoming an authorized user on their accounts hits my credit score/report like an inquiry.

Chase says that it will show on my report, however, most banks are not asking for my socials security numbers.

Just curious to see what has happened to those who have become AU's on multiple accounts.

 

[Nucstorm]

My SO was put on a couple (2-3) of my cards back when I first got them a couple months ago. At first, her credit was dinged because of the new trade line. However, it has been increasing monthly as history is being established. She doesn't have any credit cards atm so once she is ready, she shouldn't have any problems receiving one.

 

[Andrew]

Yeah, I see how this would be good for someone who doesn't have many cards or much credit history. In fact I did this with my fiancée a few years ago to help her establish a credit history when she moved to the US for her Master's.

Just wondering what this does for someone who already has a decent credit history and a very good score.

 

[Mike]

Yeah, I see how this would be good for someone who doesn't have many cards or much credit history. In fact I did this with my fiancée a few years ago to help her establish a credit history when she moved to the US for her Master's.

Just wondering what this does for someone who already has a decent credit history and a very good score.

FWIU there is no pull for an AU and it can help immensely even if they don't ask for your social, they have other ways of knowing who you are! Data point: I added my bro who had no credit at all to one of my Amex cards and within a month he applied for 3 Amex and got approved for all!

 

[lfas25]

FWIU there is no pull for an AU and it can help immensely even if they don't ask for your social, they have other ways of knowing who you are! Data point: I added my bro who had no credit at all to one of my Amex cards and within a month he applied for 3 Amex and got approved for all!

+1000 no credit pull and if you have a few months to wait its a great help! (Personal experience with it.)

 

[cocobird]

There isn't a simple answer to the question. The reason is that every financial institution has its own set of policies and procedures. Although most people think of a credit score is simply the FICO score that is most widely discussed and widely available, the reality is that a credit score is a dynamic set of systems. So you have a moving target.

In response to your question, in your example, it's nearly impossible to tie AU to the credit score without the use of a social security number. That is the straightforward answer.

For anyone interested, I will elaborate further on why the credit score is a moving target.

Banks often use the FICO score as a baseline. In the simplest scenario, a lender will decide to only use the FICO score. The cut-off is approve or disapprove. This is quite uncommon.

More likely, a lender will establish a FICO score for automatic approval, a second FICO score for automatic disapproval, and the range between the approved and disapproved is a gray area requiring further review by a person. This is known as a manual review. The manual reviewer will look at factors based on the bank's policies and his/her experience to determine whether to approve or disapprove.

Note two things in the above examples:
1) The FICO score baselines for approval or disapproval in both instances are determined by bank policy. The FICO score needed will change. So it's possible that an acceptable score one day is unacceptable the next. The reason is that a FICO score is simply an equation to determine the likelihood of repayment. No matter how high the FICO score, there is always a chance of non-payment, it's just less likely.

2) The lender's policy constantly change. As noted above, the FICO score is subject to policy. Other factors will also be subject to policies such as other factors used to determine manual approvals. Examples of this might be - the length of time for the credit history, the number of inquiries, the number of "new" credits (and "new" is also defined by policy - one year, six months, etc). What confuses many people is that a credit score can use factors that do not appear to have any relationship to credit. That is legal as long as it is a determinant factor that can be shown to tie to likelihood of repayment.

These are just two very simple examples. More complicated examples come with large credit card issuers who may have developed their own credit scoring systems base on its portfolio. There could be multiple credit scoring methods even within one credit card issuer. Which credit scoring method that is used is again based on the lender's policies.

 

[mario]

It looks like I will be adding my girlfriend to a few of my credit cards. She doesn't have any credit. She has been turned down for two introductory credit cards since we started dating (thanks to my prodding). She was denied based on the fact that she has no credit history. We need to get her some credit history so we can start getting all of the signup bonuses again.

 

[Haley]

Refinance your car or figure out some sort of loan you can get to report.
It helps greatly. Find one that can be paid on Evolve Money, Wells Fargo Auto is on there.

Am Ex reports AU and back dates most of the time. Backdate means when I added my kids this year as an AU on a card I opened in 2000 it reported account opened 2000 giving my 18 and my 16 year old a 14 year age of account. You can add kids 13 and up.

Chase AU also show on their reports. I have a no fee card with a large unused CL that is one I've used with all my kids. Didn't back date but I add my kids at 13 (youngest allowed by Chase and Am Ex) so they still have 5 years history. I put my netflix auto pay on the card and auto pay off the card, so that it reports payments.

They do not need a SS# to be able to report, not asking is not a good indication of if it will or will not report. Add your AU to a card that offers free AU cards then check their FAKEO on the free sites. Check again every 4-6 weeks. The first look is so you know where they started, the FAKEO sites only give data from first opening of account and log in forward. I forgot to do this so can't say exactly but my kids that are over 18 both have gotten every card they have applied for.

It may drop their score initially 'new credit line reporting' but it should go up after the first month and continue to go up for a few months.

 

[NickPFD]

It looks like I will be adding my girlfriend to a few of my credit cards. She doesn't have any credit. She has been turned down for two introductory credit cards since we started dating (thanks to my prodding). She was denied based on the fact that she has no credit history. We need to get her some credit history so we can start getting all of the signup bonuses again.

Be aware of the difference between adding someone as an authorized user (so they're not responsible for the debt) and a co-applicant (they will be responsible for the debt). Some banks let you add someone as a co-applicant to a new credit card application, or possibly even an existing credit card. I added my wife, who had no previous history, as a coapplicant to my oldest card, which also has my highest credit line, and her score was mid-high 700s in 6-12 months.

 

[mario]

Be aware of the difference between adding someone as an authorized user (so they're not responsible for the debt) and a co-applicant (they will be responsible for the debt). Some banks let you add someone as a co-applicant to a new credit card application, or possibly even an existing credit card. I added my wife, who had no previous history, as a coapplicant to my oldest card, which also has my highest credit line, and her score was mid-high 700s in 6-12 months.

Thanks! So you're saying a co-applicant is better because they show up as having a super old line of credit immediately? Do you mind me asking what bank that card was with? Do you know if chase allows co-applicants?

 

[Haley]

Chase, AmEx, WF all offer co applicants or authorized users. Just call and add them to the account co-applicant might also be called joint account.

Either being a co-applicant or an authorized user will help establish credit, being a co-applicant is more beneficial but involves more risk.

 

[NickPFD]

Chase, AmEx, WF all offer co applicants or authorized users. Just call and add them to the account co-applicant might also be called joint account.

Either being a co-applicant or an authorized user will help establish credit, being a co-applicant is more beneficial but involves more risk.

Chase scrapped joint credit cards last year.

 

[Haley]

Chase scrapped joint credit cards last year.

Really?
I guess Chase has been a moving target all year.

 

[NickPFD]

Really?
I guess Chase has been a moving target all year.

http://money.cnn.com/2013/09/24/pf/joint-credit-cards/

 

[Jeff]

I have been curios to know the answer to this question as well. My husband has no interest at all in MS so I do all the my apps the a few for him but I become the AU on all his cards. In the beginning of this year as a newbie, I put him as AU on for all the cards because I didn't have my arsenal built up yet to be able to go it alone, so he received instructions of which color card to use for grocery shopping, etc. If you look at my credit report you see all the cards i applied for and all AU cards. When I initially saw this I was upset because the CC company said they didn't need SSN except for verification purposes. I don't know if it's true, but my thoughts were that this would look bad to a creditor. I want to remove myself and him as AU for all cards that min. spend has been met going forward, but I don't know how that affects our credit.. Does anyone know if the removal of all AU's no longer needed will help, hurt, or do nothing to credit. Note, we both have excellent credit which we achieved on our own, so no need for AU from that perspective.

 

[ysugar1]

I have been curios to know the answer to this question as well. My husband has no interest at all in MS so I do all the my apps the a few for him but I become the AU on all his cards. In the beginning of this year as a newbie, I put him as AU on for all the cards because I didn't have my arsenal built up yet to be able to go it alone, so he received instructions of which color card to use for grocery shopping, etc. If you look at my credit report you see all the cards i applied for and all AU cards. When I initially saw this I was upset because the CC company said they didn't need SSN except for verification purposes. I don't know if it's true, but my thoughts were that this would look bad to a creditor. I want to remove myself and him as AU for all cards that min. spend has been met going forward, but I don't know how that affects our credit.. Does anyone know if the removal of all AU's no longer needed will help, hurt, or do nothing to credit. Note, we both have excellent credit which we achieved on our own, so no need for AU from that perspective.

Sometimes if the AU is removed the bureaus will remove it from the AU's credit report, sometimes it can show as closed. It will probably hurt his credit though, as his utilization will probably take a hit. The only bank that counts AU's credit limits when approving personal lines of credit is chase.

 

[InstinctX]

For AmEx Simply Cash business CC, to add an employee card, they require SSN. What is the impact on their personal credit history? For Chase Ink, adding employee cards, they don't require SSN.

 

[ElainePDX]

Does anyone know if, when applying for a new card, you are more or less likely to get immediately approved if you do list an AU on the app? Or does it make no difference, since the approval is based on the primary app exclusively.

If adding an AU after a new card arrives made it more likely to get immediate approval, I'd opt for that. But I usually just list my husband as an AU, and vice versa, to save me a call or DM to the bank after the card comes.

 

[AndyL]

For AmEx Simply Cash business CC, to add an employee card, they require SSN. What is the impact on their personal credit history? For Chase Ink, adding employee cards, they don't require SSN.

Business cards don't show up on your credit report. So when I MS I usually try to pay my personal cards off before due date and keep my utilization low but for business cards I'll pay when it's due.

 

[MarkD]

This is really confusing and an inexact science it appears. I added my 20 year-old daughter as an authorized user on a Chase CC (I have a long history with Chase) over six months ago. Her SSN was NOT required. Now when we try to check CreditSesame/CreditKarma they cannot find a credit history for her.

Which CC companies require a SSN for an AU? It sounds like I should try AMEX next???

 

[Outlying Anomaly]

Just as a data point, I made a horrible mistake over 10 years ago and canceled all of the cards I didn't use. I became a SAHM and thought I couldn't get anything but a joint account. I had one card.

I started applying, and within a month or two, my CS/CK scores surpassed my husband's, and are still higher than his 3 yrs later. We've only done minimal cards - still getting "bad grades" for our low # of cards! For the 95-98% that don't pay off every month, why would you be encouraged to have 20 CCs?! All of this shows how ridiculous the system is.

I am concerned that if one applies as a co-applicant rather than an AU, doesn't that preclude them from getting certain cards that are not churnable for themselves? I'd hate to turn any faucet off, but I'm a noob so this may not be the case.

@MarkD, we have Citi cards & SPG Amex AU for our kid and as I recall, neither asked for SSN. She's had them for 2 years, but no bank acct, and has a "thin file." Until today (I'm learning...progress!), was not AU on our older cards, so I'm hoping either/both of those changes will help. Does your daughter have a bank acct?

I'm wondering if we can request that the SSN be added, or if it even makes any difference?

 

[PVM]

I'm trying to get my wife started but she has no credit history at all. She has been an AU on my 3 of my credit cards (Chase Marriott Visa - 5 yrs, Chase Ink Plus - 1 yr, Amex Delta - 3 yrs (closed), Amex Everyday Preferred - 3 months). I don't think I put her SSN for any of them. When I tried to look up her credit on Credit Karma, it complained of a "thin file". Looks like the AU cards are not being reported.

I tried applying for a Chase Freedom card her and was denied. Can I call Chase and AMEX and give them her SSN. Will they start reporting after that?

@Outlying Anomaly , did you have any luck calling the bank and giving the SSN?

Appreciate all help in this matter...

 

[Outlying Anomaly]

Hi, @PVM. I did call our card banks and added her as an AU to our old cards (see related student thread here, too). I did this about 7-10 days ago, but can't remember if I gave them her SSN, but I guarantee I offered to. I agree with other posts here though, that they "know" who she is. I'm surprised that after 5 yrs as an AU your wife would still have a thin file. Are you saying she's been an AU for 5 yrs, or you've had the card that long (or both)?

I thought you had the right to find out from the issuer why when you're denied credit - still true? It always used to be that you could get a free credit report when you are denied as well. Make sure to apply with household income, not just hers, (as long as you're okay with that, of course; 100% the law again now for the past year or so), and that she's got bank accounts (joint is fine), name is on mortgage/rent, etc.

I just checked my daughter's CK/CS accounts again. CK was still thin, but surprise, surprise...my daughter is a legitimate adult now to Credit Sesame, and has a dazzling well-over-800 to boot. So, yeah, I'd get on the phone and see what you can do, and sign up with Credit Sesame, too.

Good luck!

 

[PVM]

Hi, @PVM. I did call our card banks and added her as an AU to our old cards (see related student thread here, too). I did this about 7-10 days ago, but can't remember if I gave them her SSN, but I guarantee I offered to. I agree with other posts here though, that they "know" who she is. I'm surprised that after 5 yrs as an AU your wife would still have a thin file. Are you saying she's been an AU for 5 yrs, or you've had the card that long (or both)?

I thought you had the right to find out from the issuer why when you're denied credit - still true? It always used to be that you could get a free credit report when you are denied as well. Make sure to apply with household income, not just hers, (as long as you're okay with that, of course; 100% the law again now for the past year or so), and that she's got bank accounts (joint is fine), name is on mortgage/rent, etc.

I just checked my daughter's CK/CS accounts again. CK was still thin, but surprise, surprise...my daughter is a legitimate adult now to Credit Sesame, and has a dazzling well-over-800 to boot. So, yeah, I'd get on the phone and see what you can do, and sign up with Credit Sesame, too.

Good luck!

I started digging into this and I think I figured out what happened... Yeah, she has been on my Marriott Visa for 5 yrs as well as my AMEX Delta for 4 yrs. Unfortunately, those were under her maiden name. About 8 months back we switched her name to my last name. The Chase Ink was in her married name when we applied with Chase for the Freedom card but that does not show on her personal credit history as it is a business card. We applied for the Chase Freedom in her married name and she did not have any credit cards in that name at that time. The AMEX everyday preferred that I got in April was the first personal CC in her married name. Today I logged in to Credit Sesame and it showed an excellent credit score for her. I then logged in to Credit Karma and it finally didn't complain that she has a thin file and completed her account. CK is also showing a very good score for her. Both of these were created with her married name. CS & CK both show my AMEX everyday preferred in her account.

@Outlying Anomaly , thanks for replying back and telling me to try CS. Once CS showed a file for her, that got me thinking about this whole thing and finally figured it out. I will wait for a couple of months, maybe add her to another card in her married name and then apply for her own card.

 

[bvddy]

Interesting thread, I recently added my girlfriend to my account and they didn't ask for her SSN or any identifying information.

 

[Outlying Anomaly]

@PVM Great to hear that you got it figured out. Happy high credit scores for all!

@bvddy In my experience, that's almost always the case. They can figure out who you are from other data points. Your zip code and birthdate are all that's needed to find you in most cases. Another reason having a public FB page with everyone saying "Happy 21st birthday!" all over it has more ramifications than people realize.

 

[Outlying Anomaly]

@MarkD, we have Citi cards & SPG Amex AU for our kid and as I recall, neither asked for SSN.

I recalled wrong, or they changed this over the past year. I applied last week for a few cards, including an SPG Amex for myself. On the SPG, I did have to give SSN (and perhaps DOB) for the AUs.

Interesting thing is that the day I received two of the cards, I also got a separate envelope/letter telling me that I needed to call in and give my D's SSN to them! I called, they asked me to confirm it, and they said, "Great, we'll put the card in the mail." I asked why this hoop, when they knew I already put it on the application. They said sometimes they just require a call, and I said it was probably b/c she had a thin file...rep said, "Probably."

 

[PainCorp]

I'm an AU on several old accounts my parents put me on YEARS ago, and since they're as old as I am, we leave them on. Barclays actually included the AU credit lines when determining my total credit extended to me. Arguing that point didn't do any good, as it was Barclays. Great for my credit score, bad for recon. Not that recon with Barclays is ever good.

 

[birdman0494]

In the beginning I didnt know how everything worked, And I added family to citi executive cards that were 2-6 months old. when I closed the Executive cards their score actually went up slightly, im assuming that those cards were decreasing their aaoa