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  1. #16

    Default Re: Joint Accounts and Authorized Users

    Now, let's start over.

  2. #17

    Default Will piggy backing on someone's good credit help me?

    When I turned 18, almost 13 years ago my mom added me to her Discover Private Issue card. It had a CL $8500. About 6 months later I get a pre-approval from PNC VISA w/ a $6000 limit. The rest would be history. I opened my own Discover Card, Sears, Bloomingdales, etc. Then, 7 years later I lost my job and all my accounts went delinquent.

    In the last year I have started rebuilding my credit and getting all of my old debt removed from my credit report. However, I cannot get anything more than a $300 CL from HSBC, $3000 CL from CAP 1.

    My question is, do you think if I piggy back yet again will it not only dramatically help my credit (the card in particular is from CITI w/ 25K CL) but will it hurt the other person's credit with whom will add me to their account as a joint cardholder?

  3. #18

    Default Re: Will piggy backing on someone's good credit help me?

    Quote Originally Posted by atthelake1 View Post
    When I turned 18, almost 13 years ago my mom added me to her Discover Private Issue card. It had a CL $8500. About 6 months later I get a pre-approval from PNC VISA w/ a $6000 limit. The rest would be history. I opened my own Discover Card, Sears, Bloomingdales, etc. Then, 7 years later I lost my job and all my accounts went delinquent.

    In the last year I have started rebuilding my credit and getting all of my old debt removed from my credit report. However, I cannot get anything more than a $300 CL from HSBC, $3000 CL from CAP 1.

    My question is, do you think if I piggy back yet again will it not only dramatically help my credit (the card in particular is from CITI w/ 25K CL) but will it hurt the other person's credit with whom will add me to their account as a joint cardholder?
    Supposedly FICO changed how they view authorized user's (piggybacking) in determining FICO scores in 2008. Meaning, by being added as an authorized user on an established, high limit trade line would no longer be an easy way to build credit. I don't completely buy that though and I see people doing it all the time (there are even websites where people with great credit will sell a spot on their accounts for an authorized user for a price). Some bureaus will not report an authorized user unless they have been provided the SSN (AMEX will not add an authorized user without the auth users SSN).

    Having an authorized user with bad scores will not effect the primary cardholder's credit. They are responsible for the account and any charges made to it.

  4. #19

    Default Re: Will piggy backing on someone's good credit help me?

    well I was not so much talking about being an authorized user, I was talking about being added as a Joint Account holder. I have contacted CITI and all they need is my social # to be added to a primary's account, same thing for Macy's.

    my scores are def not high, but not the lowest either. Right now EQ has me at 605. Just paid off 3 cards. Only one has a balance. So we'll see what next months FICO score is before I become Joint on an account and will let everyone know how that works.

  5. #20

    Default Re: Will piggy backing on someone's good credit help me?

    Quote Originally Posted by atthelake1 View Post
    well I was not so much talking about being an authorized user, I was talking about being added as a Joint Account holder. I have contacted CITI and all they need is my social # to be added to a primary's account, same thing for Macy's.

    my scores are def not high, but not the lowest either. Right now EQ has me at 605. Just paid off 3 cards. Only one has a balance. So we'll see what next months FICO score is before I become Joint on an account and will let everyone know how that works.
    Oh, I thought you meant being added as an authorized user. Being added jointly-that could effect the account if someone with bad credit is added. The way the banks are acting they could potentially reduce the credit line or close the account. They could also decline the request to be added as a responsible party to the account if your scores are too low. I would ask to be added as an authorizer user first to see how that changes your score.

    Good luck and let us know.

  6. #21

    Default Re: Will piggy backing on someone's good credit help me?

    I think I will do both, sort of. Add my name as an authorized user on the CITI account with the high CL, and then add as Joint on a smaller gas card, with say a $2000 CL. Hopefully within the next 48 hours both will be accomplished. I am a member of scorewatch so the slightest move and it will email me and I will get back to you all. Thanks for the advice so far.

  7. #22

    Default Re: Joint Accounts and Authorized Users (Piggy Backing)

    Quote Originally Posted by hjm331 View Post
    The difference between these two are:

    Joint account: Under the name of two people and both are responsible for paying all of the debt back equally.

    Authorized User (AU): Not responsible for paying the debt back.

    Now that the FICO scoring system has changed, AU's can't use someone's credit line to help out with their utilization so this forces everyone to get a card under their own name.

    So an AU's credit line is not part of the primary card holder's credit line?

  8. #23

    Default Re: Joint Accounts and Authorized Users (Piggy Backing)

    Good Luck, keep us post-dated with your AU scenario!

  9. #24

    Default Re: Joint Accounts and Authorized Users (Piggy Backing)

    So I sent off the paperwork a little over a week ago to be added as a Joint account holder under my mother's name on her Lowe's CC w/ a 10K limit. This will greatly reduce my debt to credit ratio and hopefully help me to get higher lines of credit and a higher credit score. I will call Lowe's within the next few days to confirm their receipt of paperwork. I have scorewatch and a creditkarma account, so as soon as it is posted I will let everyone know what an immediate difference it made for me on my credit score.

  10. #25

    Default Re: Joint Accounts and Authorized Users (Piggy Backing)

    I HAVE GREAT NEWS!!!!!!!!!! Called Lowe's, I was added as Joint account holder. Pulled myfico score...went up 24 points immediately from 590 to 614. Experian only went up five points from 584 to 589. So yeah...with another 3 months worth of payments, the fico score simulator puts me in the 630-650 range. YAY. We can play this credit game and come out ahead!

  11. #26

    Default Re: Joint Accounts and Authorized Users (Piggy Backing)

    belle - nothing changes for the primary cardholder when an "authorized user" is added. The primary cardholder is still responsible for the debt on the account. The only difference is an authorized user can benefit from the credit rating, credit limit, use the account and not have any responsibility for the debt (yes, there is risk to the primary account holder). Generally, this was invented to add a spouse or child. The sale of a primary cardholder's credit score to others to improve their own scores was another one of those innovative "SCHEMES" conjured up by the less than honest. FICO said they would sort out which FICO scores were family related versus not-family related and only consider the family related authorized users. Whether this is the final shake I don't know. The interest rate, monthly payment amounts, credit lines and such still work exactly the same as if the authroized user didn't exist.

    Joint accounts are different. There those who signed on as joint account holders (generally started out as spouses - today who knows) are equally liable for all actions on the account. Again the rules related to the account remain the same but the credit line might be higher if the joint incomes could support a higher line of credit. Also, depending on each joint cardholder's credit scores they may even have better rates than individually if one holder has better stats.

  12. #27

    Default Re: Joint Accounts and Authorized Users (Piggy Backing)

    Thanks Wanderer. But "since the AU's can't use someone's credit line to help out with their utilization so this forces everyone to get a card under their own name." Does this mean we can no longer file as AUs?

  13. #28

    Default Re: Joint Accounts and Authorized Users (Piggy Backing)

    Quote Originally Posted by Meya View Post
    oink your own.
    lol! what a catchphrase Meya.

  14. #29

    Default Re: Joint Accounts and Authorized Users (Piggy Backing)

    You can still add "authorized users". What happened is people were paying people with good credit to add them and bad credit suddenly goes up. FICO wanted to limit this practice to legal family members. Supposedly they had a method to screen out the use of authorized users who were not family members. Not sure they really were able to do that or that the practice of screening ever worked. How would you know what the family relationship was...? Any way that gives the current happenings.

  15. #30

    Default Re: Joint Accounts and Authorized Users (Piggy Backing)

    Again...being an AU does not generally help your score, it is being added as a Joint applicant is where the benefits really are. I know, it happened for me. got almost 30 point increase on all CBs in the first week I was added.

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