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| MrT |
 Posted: Wed Nov 01, 2006 6:26 am Post subject: Potential way to establish good credit quickly? |
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Investing Sr. Associate
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I'd like to hear anyone's opinion on this one, I'm curious to know if it works:
So, you know how someone always seems to have a story about how someone with a bad history of payments on a credit card adds someone (like their spouse) to their card, then the spouse gets pissed because the bad history on that credit card is then reflected in their credit report? I think this happens because the card companies only have one file, so they report the whole thing under both peoples credit report. And if it's bad, it can cause them to look like a loser to potential creditors, despite the fact that they weren't even on the card when some late payments, etc may have been made.
So, logically, is it possible for someone with no/little credit to be added to someone's card with a long good payment history, and benefit from it? Because the card company will report the whole card history on the persons credit report that doesn't really have a long history, than any creditors pulling that file will see a card that has a long payment history on it, so they will consider them a better lender.
Would that work? |
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| MrDowJones |
| Posted: Sat Nov 18, 2006 11:24 am Post subject: |
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So, logically, is it possible for someone with no/little credit to be added to someone's card with a long good payment history, and benefit from it?
Yes, BUT only on this ONE account. |
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| efflandt |
| Posted: Sun Nov 19, 2006 3:52 am Post subject: |
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It depends whether someone with good credit adds someone to their account and still keeps the account in good standing, or is added to (or cosigns for) someone who fails to make payments on time (which would be foolish for the person with good credit).
One good account in a sea of red is not going to make that much difference if a person is using too much credit or has too many late payments or defaults.
Not sure if it makes a difference if the other person is a spouse. Credit card companies started sending my mom credit cards in her name many years ago when she has not had a paying job since before I was born in 1952. Not that she didn't work raising 4 of us born in 26 months (including twins). So I am not sure where they got her name or credit info from unless it was from back in the days when department stores had metal credit cards or as an authorized user for my dad. |
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| lostsoul01 |
| Posted: Wed Nov 22, 2006 10:45 am Post subject: |
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Investing Sr. Associate
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I think the main point is usually the authorized user only gets info reported on them while they are an authorized user. So you can't magically establish a lengthy history, but you could give a person a credit card history even though they have no credit. That authorized user will show the length they've been an AU, their credit line, and their available credit... just like a normal card would.
They won't have a long payment history until they've been an AU for a while.
This is the situation I encountered with a few of the major companies.
And if either person screws up that line, both people's credit tanks!  |
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| Do5 |
| Posted: Tue Apr 10, 2007 6:35 pm Post subject: |
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Investing Sr. Associate
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There is a huge benefit to be added as an authorized user with an account of a responsible person, it can add the credit history, high credit limit for utilization and an added tradeline.
Just because they are an Authorized User doesn't mean they have to have a card in hand.
My wife has a new credit history, 1 installment loan, I added 2 of my Credit Cards as a Auth. user and it showed up the next time they reported, with the correct months reviewed and High Credit. Her scores jumped big time.
But others are right, if you have someone who pays late, is over limit, then that will have a neg. effect on your report as well as opening doors for collectors calling you too. |
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