The Credit.com Forum recently saw this post about how credit scores consider authorized users on credit cards:
Is Dave Ramsey right …
{ 0 comments }
authorized user
Many consumer groups have spoken out against rule that was designed to prevent borrowers from obtaining credit cards they can’t …
{ 1 comment }
Sam is a busy New Yorker who’s savvy about his credit. A recent college graduate working his first job in …
{ Comments on this entry are closed }
These days, many consumers are quite aware of the role their credit score plays in their daily life, as it …
{ 1 comment }
Last week, I wrote about how the process of piggybacking is dying a slow and painful death. This week, I’m going to explain to everyone out there why the companies who facilitate piggybacking are not only credit repair organizations but are also violating the Credit Repair Organizations Act (CROA).
{ 1 comment }
This is certainly a blast from the past. Piggybacking, the process whereby a consumer pays to be added to a stranger’s credit card account as an authorized user, was all the rage in 2007. The theory, a sound theory at that, was that adding a credit card with a high credit limit, clean payment history, and a low balance to a credit report would improve your FICO credit scores. At one point the practice became so popular that FICO announced that in their new model (FICO 08), authorized user accounts would not count at all. After some complaints from lenders, FICO announced that they would take a more surgical approach and weed out the illicit authorized user accounts but still count the legitimate authorized user accounts.
{ 2 comments }
Despite FICO roll-out delays, authorized user accounts are not likely to be counted in credit scores. Most lenders and credit score users have figured out the scam and adjusted their models accordingly. Buying an authorized tradeline is a gamble at best and most-likely a huge waste of money. There is no “grandfathering” of these authorized accounts. Even if they do manage to get you a score boost now, the increase will disappear once everyone converts to the new scoring formula.
{ 3 comments }
I have 2 Bank of America cards that are maxed out. I have other credit cards with zero balances totaling about $50k in credit limits. I am under the impression that if I spread the balances out from the 2 maxed cards across 5 cards in order to have my balances at under 50%, that will help my FICO score.
{ 4 comments }
I am added to my girlfriend’s credit card. How does this impact my credit score and what will happen when the FICO formula changes? What is the difference between joint account holder and authorized user?
{ 0 comments }
It seems that some people have a hard time establishing credit. These folks come from several groups. Some are young people who have never had credit. Some are new to this country and don’t have any history of U.S credit to show people. And some folks had credit at one time but, for whatever reason, ended up with trashed credit reports and horrible credit scores. This last group is really trying to re-build credit.
{ 2 comments }
About Us
Credit.com News & Advice provides readers with unique insight, helpful tips and straight answers about their financial world. Our leading experts explore credit, loans, debt, saving, and identity theft topics. Meet our credit & finance gurus.
- Free Credit Score & Report Card Use Credit.com›s FREE Credit Report Card to instantly review your credit standing. Free updates, too!
- Need a Loan? Offers for personal loans, debt consolidation, and student loans up to $35k. Simple, no-obligation quote, apply today!
- Get The Chase Freedom Card $100 bonus cash back, 0% intro APR for 15 months & no annual fee. Do you have good credit? Apply now!
- Bad Credit? No worries! Credit Cards from Visa and MasterCard Find the best card now!
Follow Us
