Will adding someone as an authorized user boost their credit?
Having a spouse, friend, neighbor, or relative add you as an authorized user on their already existing credit card is a great way to build your positive credit. When being added as an authorized user, the bank or credit card company does not pull your credit so you do not need to fear being denied.
The reason they do not pull your credit is because as an authorized user you are not responsible for the payment. My father added my little brother to his credit card to boost his score so he could purchase a home. The card my dad added my brother to had been open since 1983 — my brother was 29 years old and had 40 years of credit history! Authorized User Trick
Remember “Length of Credit History” is 15% of your overall credit score.
While this certainly helped my brother in this case, there are a few things to aware of, and rules to follow when being added as an authorized user:
- Make sure the card has a balance that is less than 30% of the limit
- The longer the card has been open, the better. 2 years + minimum
- Be sure the card has perfect payment history (no late payments)
- Be aware that if they max out the card or go late, you will suffer
- Immediately remove yourself if #4 happens
- Don’t rely only on authorized user accounts, build more credit
- If you don’t do #6, home loan lenders may deny you or request removal of the authorized user account
As Always… In case you haven’t yet, here’s how you get started.
Tap or click here to get your $1 credit report.
We’ll need it to do your credit analysis.
This is for a $1 seven day trial.
You can cancel it in the first seven days if you want, but we need this as a first step, in order to help you.
You will get a login and password for IdentityIQ, when you set up your $1 trial.
Go to this page on TheCreditMovement.com.
Share your username/password for IdentityIQ in the form on the page.
We are here to help you buy a home. We will introduce you to a lender once you will qualify for the loan you want.