Why would the score get reduced when he applies for a mortgage?

Anytime there are inquiries or a new trade line, the score will drop. But it is worth it to have a mortgage. Eventually as anything, it will even out again and even go up because lenders like to see good, paid on time mortgages.

I believe everybody checks on anybody asking for credit.

In response to your other question

Why would the score get reduced when he applies for a mortgage?

As far as adding a authorized user to an account. Citibank is very easy to do while accessing your account online. They also will report it on your Credit Bureaus. As far as being related to the person who puts you on there account doesn't matter. I put me girlfriend on one of my accounts with Citibank. They do pull your credit when you add an AU.

Yes, sorry I wasn't clear before. Somewhere along the way I got the impression that Joint would be more likely to impact my score than AU. The bank is Trustmark, by the way.

In any case, the paper work is in to add me as AU on the above-mentioned card. I'll be monitoring my score, and post the results here as soon as I see a change (or don't see a change, as the case may be).

I really appreciate everyone's input here. This has been a heck of an education in a short period of time.

Good luck, I hope it works out for you.

Yes, sorry I wasn't clear before. Somewhere along the way I got the impression that Joint would be more likely to impact my score than AU. The bank is Trustmark, by the way.

In any case, the paper work is in to add me as AU on the above-mentioned card. I'll be monitoring my score, and post the results here as soon as I see a change (or don't see a change, as the case may be).

I really appreciate everyone's input here. This has been a heck of an education in a short period of time.

Okay, my folks say they have an $8k credit limit visa through their bank they could add my name to. They keep it paid off (at $0) all the time. It sounds like the the Authorized User route is a little iffy. Is there anything the my parents' bank could tell us that would let us know for sure this will do what we want it to do? i.e., if I was going to call and ask the bank, what should I ask? Is it enough to know that they would require my SSN to add me as AU?

Thanks a bunch guys.

I am confused, you say the Authorized User route is iffy but then you ask about requiring your SSN to add yourself as an AU...do you mean the Joint cardholder route is iffy? I personally think the joint route is iffy simply because they will likely pull your bureau (depending on the bank, maybe all three) and there is a chance you could be declined if you do not have revolving credit history. If you are trying to add 30 points, an inquiry will hamper that goal.

When calling the bank, I would be prepared to have your SSN and DOB handy to be added as an AU, and they may even need your parents to put it in writing, but that is rare. What bank is it? A national bank or a local bank? A national bank is the best option. You could just come out with it and ask if they report on the AU's bureau. I know Citibank for sure reports on the AU's bureau and so does Amex. If anybody else knows of other banks that do, please make yourselves known.

Okay, my folks say they have an $8k credit limit visa through their bank they could add my name to. They keep it paid off (at $0) all the time. It sounds like the the Authorized User route is a little iffy. Is there anything the my parents' bank could tell us that would let us know for sure this will do what we want it to do? i.e., if I was going to call and ask the bank, what should I ask? Is it enough to know that they would require my SSN to add me as AU?

Thanks a bunch guys.

FICO said they were going to try and accept authorized users that were related to various family members and factor the increased points but NOT unrelated relationships. I do not know if this really happened as how do you determine the relationship piece...?

Okay, so getting added to a parent's credit card would be my surest route. I've been researching this, and I find some conflicting information out there on a few points. Given that a) all that ultimately matters here is the credit score the bank uses when I go to qualify, and b) I would prefer to come back off of my parent's card once this all done, and c) my parents and I do not pose any credit risk to each other

In 2008 the bureaus supposedly cracked down on what is called 'Piggybacking' wherein people with limited or no credit can be added to an established trade line and instantly obtain a solid credit standing. It has been my experience that the "crackdown" has done little to effect the piggybacking. Some banks will not actually add the trade line to the AU's bureau unless they have the AU's SSN and I believe TU will not report a trade unless the SSN of the AU has been reported. In layman's terms: you can still gain from being added to an established account. I know for sure that Amex and Pentagon Federal Credit Union request the AU's SSN and DOB before they will add that individual to the account.

In response to your other question: if you are added as joint cardholder and get a mortgage then yes, your drop in credit score can effect your parents card if that card issuer looks at the reduced score. But that is very unlikely. If you are added as authorized user, no you will not effect their credit rating because they are taking full responsibility for the account. The only way you could effect them is if you charged the card up and your parents were unable to repay.

I would recommend being added as an authorized user. There is less, sometimes no paperwork involved to add or remove you from the account. Also, keep in mind that being added as a joint cardholder, many banks are going to pull your bureau (ding!) to determine if you are credit worthy because as a joint cardholder, you would be responsible for any charges made to that account. Just something to think about...

Okay, so getting added to a parent's credit card would be my surest route. I've been researching this, and I find some conflicting information out there on a few points. Given that a) all that ultimately matters here is the credit score the bank uses when I go to qualify, and b) I would prefer to come back off of my parent's card once this all done, and c) my parents and I do not pose any credit risk to each other:

1) Joint vs. Authorized User? Something appears to have occurred in 2008 that confuses this issue.

2) Assuming I make no use of the card and they continue to use it correctly, could going Joint or AU adversely affect their credit score?

Thanks again for all your input. I'm starting to wish I had gone to school for Finance instead.

I think adding your name to one of your parents accounts will be the best thing. They are established and once added as JOINT you will see a dramatic increase on your score. Try to have them add you to the card with the highest credit limit.

Joeyman, thanks for the reply. Everything you've said is helpful, as I've had to learn all I know about credit scores over just the past few days. My situation is driven by a grant program in my area to help home-buyers. The amount of the grant is highest if my credit score (as determined by the mortgage lender) is above 750, but drops off sharply if it is below 700. Hence, I need to raise my score with no risk of accidentally dropping it. In order to do this, I need to get qualified for the mortgage by July 16th, hence my hurry.

Since my earlier post I learned about being made Authorized User or Joint Account Holder on someone else's credit account. I have parents who would be in a position to do such a thing, but am reading conflicting things about how well this would help when I apply for the mortgage. Any thoughts?

Either way, I'm going to look into the local credit unions. Thanks for the tip!

First of all, there isn't any retailer that doesn't check your credit report. I think that's against the law. Depends on how you look at it. Even a dentist will check your credit if you need a payment plan... I think your standards are too high. Unfortunately, I find it nearly impossible to pull this off. I am 19 with scores around 720 and have three credit cards and paid off student loans. I've worked hard getting here over the last 19 or so months. If you do decide to apply for a card check with a local credit union. Keep the balances below 15% of the available credit. In fact, pay in full if possible. What do you need scores above 750 for? Perhaps we can find a better solution for you regarding the need of a 750 credit score. Credit unions are not-for-profit and often times present better rates to "all" individuals. Make sure the credit union is able to use the Shared Branching systems within the CU Service Centers. This will make the credit union more convenient than "any" bank in the world. It allows you to bank at any participating bank. They all use the same computer software -- making your needs very efficient. When you become a member at the credit union ask them to use the same credit report for all the checking, savings, and credit card account. Banking fully with a credit union is highly suggested. Often times people think it's not convenient, but that's incorrect. Shared Branching ruled that out. It's only a myth created by the big banks at this point.


Hope this helps,
Joey

Hello All:

I have a situation here that I don't find discussed much in the forums. Any input would be helpful. I need to take my FICO from ~725 to over 750, as quickly as possible. I have no negative items on my report, and my only debt is student loans, which I cannot do anything about for now (still in grad. school). I have never had a credit card of any kind, and getting one seems to be my best line of attack, however, I worry about the short-term impact of the credit check associated with applying. My options seem to be:

1) Find a legitimate Secured Card that definitely does not check my credit (finding such a card has proven to be a confusing process).

2) Take the advice of some people and look into a credit line with some retail store that reports to the bureaus, but does not check my credit.

Either one will cost me some money (either fees, or having to buy useless stuff), and I'm okay with that. Any input or other suggestions? Am I making too big a deal out of a credit check?

Thanks a bunch.