Authorized User Gets Benefit of Your Good Credit Score
Guest: rapjunkie
Post subject: Authorized User Gets Benefit of Your Good Credit Score
Posted: Thu Mar 02, 2006 3:47 pm
I've read that if a person looking to establish or improve their credit is added as an authorized user on an account of a person with good existing credit, that the account is then reported on the authorized user's credit report, thus boosting their score.
My question is whether the authorized user's prior bad credit history (or lack of a lengthy credit history) can be reported or evaluated in any way by the creditor, and in turn, affect the "good" cardholder. In other words, can it hurt someone at all to make another person an authorized user on one of their accounts if that person's prior credit history is poor?
(Of course, this assumes the authorized user does not have a card to use and doesn't make any purchases on the account - i.e. if they are simply on there for credit-building purposes.)
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Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Thu Mar 02, 2006 7:27 pm
Your authorized user gets the benefit of YOUR credit; you don't get any benefit or problem from the authorized user's credit. YOU are responsible for all the debts on the card. So you run no risk--as long as you keep paying all the bills regardless of the expectations or promises you have from the authorized user to make payments.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: rapjunkie
Posted: Fri Mar 03, 2006 2:43 am
Great - thanks.
By the way, I think it's pretty surprising that it can be that easy to help someone establish credit... do you think it might count with a bit less weight on the authorized user's report, like when a person gets a co-signer on a car loan and is listed as secondary?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Post subject: Authorized User Gets Benefit of Your Good Credit Score
Posted: Thu Mar 02, 2006 3:47 pm
I've read that if a person looking to establish or improve their credit is added as an authorized user on an account of a person with good existing credit, that the account is then reported on the authorized user's credit report, thus boosting their score.
My question is whether the authorized user's prior bad credit history (or lack of a lengthy credit history) can be reported or evaluated in any way by the creditor, and in turn, affect the "good" cardholder. In other words, can it hurt someone at all to make another person an authorized user on one of their accounts if that person's prior credit history is poor?
(Of course, this assumes the authorized user does not have a card to use and doesn't make any purchases on the account - i.e. if they are simply on there for credit-building purposes.)
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: Polonius
SENIOR MEMBER (Member for 2 yrs.+)
Posted: Thu Mar 02, 2006 7:27 pm
Your authorized user gets the benefit of YOUR credit; you don't get any benefit or problem from the authorized user's credit. YOU are responsible for all the debts on the card. So you run no risk--as long as you keep paying all the bills regardless of the expectations or promises you have from the authorized user to make payments.
_________________
Polonius
"Neither a borrower, nor a lender be; For loan oft loses both itself and friend"
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Guest: rapjunkie
Posted: Fri Mar 03, 2006 2:43 am
Great - thanks.
By the way, I think it's pretty surprising that it can be that easy to help someone establish credit... do you think it might count with a bit less weight on the authorized user's report, like when a person gets a co-signer on a car loan and is listed as secondary?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 12:51 PM
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