As you may have noticed, most answers when it comes to building credit are multi-part answers and in a lot of cases based on what your goals are. You can research all day long and find varying answers to this question. In an attempt to give you the most accurate and up to date information let’s start with defining authorized user access.
An authorized user has full access to the borrowing rights that were extended to the account holder with none of the financial responsibility. This is good for the user, but can be damaging to the account holder. We’ll get to that in a minute. In short, the authorized user instantly has an established line of credit piggyback on the (presumably) good payment history of the account holder. Theoretically this should raise the credit scores of the authorized user in a short period of time, however, the credit card issuers do not always report authorized users. most banks have stopped reporting it to the credit bureaus because it is not a true indication of the authorized users financial stability or responsibility.
In some scenarios it will raise your credit scores, but again your goals are important in determining if that is the correct option. Most mortgage lenders today will not approve a home loan for a consumer that has less than 12 months of positive payment history. A quick call from a family member or close friend to add you to their account could fix that right? Wrong. In today’s lending market the 12 months history must be as an account holder either joint or primary. Be sure to ask the right questions when seeking answers.
If you have questions about authorized user access, or how to build your credit scores please leave a comment below or reach out via the contact form.