Authorized User (not Joint Acct)

I am in a similar predicament. I was put on my FIL's account as an authorized user mainly to get account info and pay his bills (BUT I'm not now nor ever was financially respoinsible for the account) while he was in a nursing home. Didn't provide SSN or anything. His account shows on my CR including a few late payments! One CRA says that his info *must* show because I'm linked to the account and they have no way to show that it was just as a user...BS!

 

I've got a related question. I repaired my credit a couple of years ago. My fiance has had credit problems as well, and I'm trying to help her rebuild/repair her credit.

Here's the question: If I add her as an authorized user to one or more of my accounts, will that help her score? Also, will having an authorized user with a lower credit rating drag my score down?

Thanks in advance for any input.

 

I don't see any reason why adding her as an authorized user would affect your scores. It would not by itself cause her accounts to be posted on your reports. She should realize, however, that if your payments on this account are late, that negative information will likely appear on her reports, even though she is only an authorized user. Also realize that if the account becomes delinquent, the bank might try to come after her, even though they should not have any claim. The utilization (balance to credit limit) ratio would also affect her FICO scores just as it does yours.

You might only want to use this strategy temporarily to reestablish her separate credit.

 

Re: Authorized User (not Joint Acct

Thanks for the comments. This is exactly what I had in mind -- just doing it for a bit until she gets to where she can repair her credit to the point where she can get approved for some accounts and reestablish her credit.

 

Re: Authorized User (not Joint Acct

Once both partners have established good credit, it is probably best to make less use of, and phase out, joint or authorized users. Your credit histories are then your own, and you have some independence should certain disasters strike (loss of job, serious medical bills, divorce). You also limit your exposure to erroneous damaging actions by your various separate creditors, which are more damaging if they simultaneously affect both your credit reports, potentially causing both your other creditors to increase rates. Diversification of risk.

You can also balance any balances you are both carrying, improving your worst case debt to credit limit ratios, and minimizing your cost of borrowing.