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What is, and how do Authorized User Lines Work !


The common question “do authorized users build credit?” is a simple question with a not so simple answer. The “authorized user” strategy is one of the most commonly used methods by people who want to build their credit from scratch and by people who are trying to rebuild their credit after some sort of credit disaster. The strategy is equally effective for both scenarios, and here’s how it works.

How the authorized user on credit card strategy works

You will have your name added to the existing credit card account belonging to another person. But rather than being a co-signer or a joint cardholder, you’re added as an authorized user. A few days later a card with your name on it will be sent to the primary cardholder, who is usually your spouse or one of your parents. Once the card is activated you’ll have the same buying power as the primary cardholder.

Authorized user credit card payment liability

As an authorized signer on a credit card, you are not held liable for the charges or balance on the account. That means you will never be asked to pony up any money to cover the payments. That responsibility will always remain with the primary cardholder and any co-obligors on the account.

Authorized users on credit report cards

Within a few months the history associated with the account will be added to your credit reports. While this is commonly done, it’s not 100% universal. Check with the credit card issuer regarding their credit reporting practices for an authorized user account to make sure they’ll report the account on the authorized user’s credit reports.

Can an authorized users credit score increase?

When the account is added to your credit reports it will immediately be considered by credit scoring systems. It will be measured on par with all of your other accounts, meaning it’s not discounted simply because you’re an authorized user. The only exception is if FICO’s newer scoring models believe you’re simply trying to game the system by having your name added to the account.

FICO’s anti-piggybacking logic

FICO hasn’t provided any public detail on that aspect of their scoring logic but many believe they’ve figured out a way to sniff out scenarios where people have been adding an authorized user to credit card accounts where there’s no legitimate relationship between the two consumers. This process is called “piggybacking” and is an attempt to game the credit scoring system. It’s not much of a problem today but several years ago it was all the rage.

Best results: authorized user tradelines

You’re going to want to have your name added to a credit card account that is old, has a low balance relative to the credit limit, and has always been paid on time. These aspects of the account are very helpful to your credit scores. In fact, you could see your credit scores improve considerably, depending on your individual scenario. This is because when you are an authorized user, the account and all of the information associated with it, will show up on your credit report as a tradeline.

How to remove authorized user from credit card

The best part of being an authorized user is the fact that you have no liability for the account. That means if the primary cardholder does something irresponsible with the account, like miss payments or max out the card, you can easily have your name removed from the account. When a name is removed from the account it’s fairly easy to remove authorized user from credit report as well.

Be aware, however, that the authorized user strategy will run its useful course and then it’s time to establish accounts in your own name. There are some lenders that will want to see that you’ve been a liable party on credit cards before they’ll extend credit. So, you can’t just have your name added to other accounts and assume you’re done building credit.

Give yourself a couple of years and then it’s time to apply for a credit card as the primary cardholder. You may not get terms as aggressive right out of the gate but as long as you make your payments on time you’ll be surprised how quickly credit card issuers will adjust your account attributes, like the credit limit. And you’ll be able to thank the authorized user strategy for helping to get your credit journey started


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This program is not intended to be used as a method of defrauding banks, creditors, or any other organization that requires your social security number as identification. This program is not a method to avoid paying your existing or future debts. If you created the debt, you are responsible to repay that debt. However, we will not support, facilitate, nor condone any fraudulent activity. The information here is informational purposes only and for you to use at your own risk. We are not lawyers or any legal services. We have a non refund policy because of the work needed to give you the info.  

 

Affordable Financials has posted this message in plain sight on the front page of our webpage so consumers can be aware "CPN's" are defined as any 9 digit number which can be used for credit; such as a SSN, ITIN, TIN, or EIN and it is very clear the largest warehouser of converted 9 digit government issued numbers; such as, ITIN, TIN, SSN, and EIN ARE IN FACT FOUND THROUGH OUT THE BANKING WORLD AND WITHIN THE BANKS DATABASE and ATTACHED TO CREDIT AND LOAN FOLDER LEGALLY ORIGINATED BY THESE SAME BANKS.

IT IS OUR STATEMENT THAT Affordable Financials IS NOT ENGAGING IN ANY PROHIBITED BUSINESS ACTIVITIES SUCH AS: A. Representing, expressly or by implication, that through the use of our products or services, consumers can alter their identifying information to conceal adverse credit information from consumers' credit records, credit histories, or credit ratings, including but not limited to the use of Employer Identification Numbers ("EINs"), Taxpayer Identification Numbers ("TINs"), or alternative Social Security Numbers in lieu of the consumers' own Social Security Numbers; B. Representing that the building of a new credit record by applying for credit using an EIN, a TIN, or an alternate social security number instead of a consumer's own social security number is legal; C. Misrepresenting any material fact concerning the ability of our products or services to perform or provide any credit-related function for consumers, including but not limited to improving consumers' credit reports or profiles, consolidating debt, obtaining or arranging a loan, or obtaining or arranging any extension of credit; and D. Misrepresenting any fact material to a consumer's decision to purchase our products or services. E. Representing, expressly or by implication, that through the use of our products or services, consumers can alter their identifying information to conceal adverse credit information from consumers' credit records, credit histories, or credit ratings, including but not limited to the use of Dun & Bradstreet Numbers ("DBNs"), Employer Identification Numbers ("EINs"), Taxpayer Identification Numbers ("TINs"), or alternative Social Security Numbers in lieu of the consumers' own Social Security Numbers; F. Representing that the building of a new credit record by applying for credit using a DBN, EIN, a TIN, or an alternate Social Security Number instead of a consumer's own Social Security Number is legal; G. Misrepresenting any material fact concerning the ability of our products or services to perform or provide any credit-related function for consumers, including but not limited to improving consumers' credit reports or profiles, consolidating debt, obtaining or arranging a loan, or obtaining or arranging any extension of credit; and H. Misrepresenting any fact material to a consumer's decision to purchase our products or services.