Authorized user

Discussion in 'Credit Talk' started by Flagirl, Dec 1, 2000.

  1. Flagirl

    Flagirl Well-Known Member

    My boyfriend was just approved for a gold Citibank AAdvantage card (YEAH!!!). Anyway, he listed me as an authorized user..will this help my credit in any way? Will it even show on my credit report?
    Also- if were to apply for a credit card (I have crappy credit) and list my boyfriend (he has excellent credit)as an authorized user, would that be like a co signer for me? Or is it just for an another user? Any help would be greatly appreciated!
  2. roni

    roni Well-Known Member

    My understanding of this AU thing is that it shows on your credit report also. And it is an excellent way to improve your credit. Now, there is some controversy over whether it helps your credit score or not. But I think that it does. A poster on another board said that his scores jumped tremendously using the AU method. I have girlfriend who has all of her credit period from AUs from her dad. She has great credit. Anyway, you have nothing to lose at least. Good LUCk.

  3. Flagirl

    Flagirl Well-Known Member

    One more thing. When my boyfriend applied for the card, it said that as soon as his info is verified, his cards will be sent. How do they verify this information?
  4. Momof3

    Momof3 Well-Known Member

    They will call him at home a verfiy phone number and address. Did he receive instant approval for gold online???
  5. Flagirl

    Flagirl Well-Known Member

    well now, here's the thing... when he put my name as an AU, it didn't ask for my ss # either. SO, how would they know how to report it? Hope you don't mind all these silly questions, but I have horrible credit and would do anything to help make it better!!
  6. Flagirl

    Flagirl Well-Known Member

    yeah- he was instantly approved for $6000!!! And really the card will be mine, cause he uses a gold card from his bank! THank GOD!! I have a business trip to take in june that is 2 weeks and everything is pay up front and then i put it on my expense report. I would never be able to pay for it myself!!
  7. Flagirl

    Flagirl Well-Known Member

    Here's yet another question....would an AU ever be considered for their own account with the credit company?
  8. Momof3

    Momof3 Well-Known Member

    Thanks, did he already have a citibank card prior to applying for this one??
  9. roni

    roni Well-Known Member

    Someone else should answer tha

    b/c I dont know, Since I never did it myself. But it just makes sense that they would need your social security #. But I believe "when in doubt, call and find out". I would just call citibank application department and find out to make sure the card is set up the way you want it .

  10. Momof3

    Momof3 Well-Known Member

    RE: Someone else should answer

    Well when I applied for Sears and associates I also put my hubby as AU, they DID NOT ask for his ss#. And both cards report on his credit reports.

  11. sam

    sam Well-Known Member

    I tried that with amex, and was flat out refused (when i was young, had not much credit, but was on fathers $10K Optima as authorized).

    Declined: Insufficient credit established (only 1 year of my own positive trade lines the lady explained).

    Enjoy the card, use it responsibly..
    (tell him to switch it over to the cash-back platinum select, btw, its more efficient if you don't fly AA much).
  12. Flagirl

    Flagirl Well-Known Member

    No, he has Chase and one from Norwest (his bank- now owned by Wells Fargo)
  13. curiouser

    curiouser Well-Known Member

    Authorized user status does nothing to improve your credit score. The reason for this is that you are not responsible for the debt. You could charge to the hilt, not pay and the only recourse the company has is to go after the account holder not the authorized user. You aren't viewed as a co-signer with equal responsibility for the debt, either. That may be the case in fact, but in contract law it is not the case. Yes, the account will show up on your report as an AU account, but note that such accounts are clearly indicated as opposed to an "individual" or "joint" account.

    As far as how credit bureaus list without SSN, they also cross-reference and file via name and address.
  14. LadyC

    LadyC Well-Known Member

    RE: I beg to differ

    I know for a fact, that an authorized users score can improve. i don't know if it's does much good for someone with damaged credit. Also I doubt that it would help you for a mortgage, but it will definately get you prime cards if you don't have bad credit. Two people have established credit histories while being anuthorized users on my account.

    I'll give you an example, and then tell me what you think:
    Mary Sues credit history:
    Macy's 06/98- 2,000 limit- Authorized user
    Providian 09/00- 1,000 limit- Individual
    Citibank AA 10/00- 9,000 limit- Individual
    BofA Platinum 10/00- 8,000 limit- Individual
    Chase 11/00- 3,000 limit- Individual

    Now tell me what do you think helped Mary's credit score, it sure wasn't her first individual Providian account that's only 3 months old.

    I know it would be a different story if you were trying to obtain a mortage, and your only credit was an authorized account.

    Bottom Line: Authorized Users can improve your score.
  15. Momof3

    Momof3 Well-Known Member

    I have to agree

    I have read about this on several boards, one particular board the person posted his story, his scores were low, he was put on several accounts as an AU, these accounts were long standing and had perfect credit status, over time his scores improved most impressively, and that was the only thing he changed just being an AU.
  16. the other

    the other Well-Known Member

    Amex - AU is responsible

    I added two of my sisters as an AU on my Blue card. Each waw required to accept terms that they would be responsible for any charges made by them that the basic cardholder does not pay.
  17. roni

    roni Well-Known Member

    How do you know this for sure. Please share. I have emailed with people who say it has helped their score tremendously. How do you know this for sure?

  18. curiouser

    curiouser Well-Known Member

    RE: I beg to differ

    Your experience may be different, however Fair, Issac scores are determined by individual and joint accounts (unless things have changed in the last six months or so.) My experience in dealing with people who are attempting to re-build credit is that AU accounts aren't helpful. One reason is that not all AU applications are subject to credit checks. I'm an AU on two of my mother's accounts because I do her grocery and other shopping. One is an Optima and the other is a Citibank account. Neither pulled a credit report on me. The cards were issued as a courtesy to the account holder on the basis of her creditworthiness. I could have had terrible credit and I still would have gotten the card.

    Every lending agent I've spoken to has said that AU accounts aren't valuable for building credit.

    Also, Macy's didn't used to report AU status. They almost consistently reported AU cards as joint. I know because I had an AU card through college and it was reported joint on all bureau reports.
  19. roni

    roni Well-Known Member

    RE: I beg to differ

    That happens to be alot of folks experience. Ihave a friend who had no credit on her own. It is just her fathers. She's an AU. She gets credit offers all the time because of the positive status. Now she has her own cards. You can go by what people tell you. You are assuming that experian,equifax, and transunion can separate the two kinds of accounts. These are the same people who make millions of mistakes.

  20. marvin

    marvin Well-Known Member

    My understanding is that fair isaac started counting AU's toward the credit score recently because there was a lot of the major cc companies were listing the second person as an AU, regardless of whether they were joint holder, or AU. I could be wrong, so don't count on this but it is what I read.

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