An authorized user is one who is not responsible for paying off the debt in spite of the fact that he uses the credit card. As per the old system, the payment history on the card was reflected both on the original users credit report as well as the authorized user's credit report enabling the parents to build up a good credit score for their children. Under the new scoring model, the credit history on the credit card will no longer reflect on the authorized user's credit report.
Hi bananawind50myt
I don't think that the authorized user's credit report will be affected by the original user's payment history. This new FICO model has both a positive and a negative side. For example, if you are an authorized user of a credit card account where payment has been due for a long time, your credit score will not be affected for the delinquency of the original user. Again if the authorized user who do not have a good score, becomes an authorized user of a credit card of a person with good payment history, this good payment history will not reflect on the authorized user's account. This will enable creditors and lenders to judge the creditworthiness of a person more efficiently.
An authorized user is one who is not responsible for paying off the debt in spite of the fact that he uses the credit card. As per the old system, the payment history on the card was reflected both on the original users credit report as well as the authorized user's credit report enabling the parents to build up a good credit score for their children. Under the new scoring model, the credit history on the credit card will no longer reflect on the authorized user's credit report.
Hi bananawind50myt
I don't think that the authorized user's credit report will be affected by the original user's payment history. This new FICO model has both a positive and a negative side. For example, if you are an authorized user of a credit card account where payment has been due for a long time, your credit score will not be affected for the delinquency of the original user. Again if the authorized user who do not have a good score, becomes an authorized user of a credit card of a person with good payment history, this good payment history will not reflect on the authorized user's account. This will enable creditors and lenders to judge the creditworthiness of a person more efficiently.
This is confusing even for me! I never knew the authorized user wasn't responsible.