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kim09
Joined: 10 Oct 2009
kim09's page
Posts: 24
6 Magic Points
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Subject: Information on credit reporting for authorized user
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Sun Oct 18, 2009 7:10 am
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| My fiance has bad credit due to his ex-wife whom racked up credit card debt when they were together without his knowing. They ended up filing for bankruptcy during the divorce. I would like to help him rebuild his credit. My credit scores are around 800. If I have his name added to my credit cards (most with low or no balances). Will this improve his credit score faster? And as long as the payments are made on time every month, will this drop my credit score significantly by simply having his name added? How will this affect each of our scores? Thanks. |
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goodnatured
Joined: 03 Nov 2007
goodnatured's page
Posts: 3733
3 Magic Points
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Sun Oct 18, 2009 7:16 pm
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Just read up on the authorized user deal, you would really have to check with your individual card holder agreement and see what the reprecussions if any will be. You can get a copy of your contract if you don't have it by contacting the company. Adding someone may adjust your intrest rate on your card, there is alot to consider when doing this. I suggest that you read through your contract thoroughly so you get no surprises from the issuing company. For example, will they add him and then check his credit and then raise your score?
You did not mention this, that is why I brought it up.
As far as your credit score, I am not real sure so I won't touch that one, I am sure that someone who knows will be along shortly.
Hope you find the answers you seek |
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SIA
Joined: 18 Oct 2009
SIA's page
Posts: 59
1278 Magic Points
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Fri Oct 23, 2009 4:29 pm
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| A good way to use your positive credit to help improve your husband's credit profile would be to add him as an authorized user on several of your credit cards. Many credit card companies report their card payment histories on the credit reports of both the primary cardholder and any authorized users. Making your husband an authorized user will allow your positive credit lines to appear on his credit report and hopefully improve his credit score. Reporting accounts on the credit reports of authorized users is allowed by federal law, despite the fact that authorized users are not legally liable for the debts. The purpose behind this law was to assist women, who in the past had a very difficult time establishing credit independent of their husbands, to use their husbands' accounts to build their own independent credit profile. In your case, the wife is trying to help the husband, but the effect should be the same. Before deciding the credit cards to which you wish to add your husband's name, I encourage you to contact the card issuers to discuss their policies regarding credit reporting for authorized users to make sure you choose card companies that will report the account histories on your husband's credit reports. |
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SIA
Joined: 18 Oct 2009
SIA's page
Posts: 59
1278 Magic Points
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Fri Oct 23, 2009 4:32 pm
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Husband's bankruptcy will impact your credit score in negative way.It will affect your credit report. Adding him as an authorized user on your positive trade lines may improve his score, but the bankruptcy may prevent him from achieving a good credit rating for several years.
The more time that passes from the date of the bankruptcy, the less impact it will have on his score; hopefully the new accounts appearing on his report will help him rebuild his score over time. However, you should not expect a sudden jump in his credit rating simply by adding him as an authorized user on your credit cards.
Concerning your credit rating, adding your husband as an authorized used on your accounts should have no impact on your credit score. Your account information will appear on his credit report as an authorized user, but his derogatory items should not appear on your credit profile. If you are concerned about his negative credit affecting your credit rating, I encourage you to periodically review your credit report to make sure that none of his accounts are appearing improperly on your credit report. |
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