We have all heard people talking about authorized users on a credit report. Truth is it does not work anymore. It will not effect the score in a positive manor as it did in the past. The credit reporting agencies have revamped the scoring models so that an authorized user will not impact the score. The best thing is for customers to get a revolving in their own name so that it can be used as a good trade to increase the score. If you are dealing with a Credit Restoration company that does not assist you in setting up new trades then shame on them! Good credit is more than getting the bad off. Its also education and re-establishing new trades of revolving and installment. As alwasy I welcome any questios and I hope everyone closes a loan or sells a house today!
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FM Properties - Idaho Falls, ID
Real Estate Investor/Financier
Darrell, thanks for that. I had heard that was coming down the pipeline. A parent who adds a 16 year old on a 25 year established revolving account creates a false credit history that is not the 16 year olds but the parents. I have also heard of people who pimp out their established lines by adding authorized users to their accounts for a fee. So this new change is good in the sense that it will help preserve the accuracy of the score.
Feb 15, 2008 05:45 AM
Amerifund Lending Group - Palm Springs, CA
Palm Springs Mortgage Guy
Thanks for the info. I remember in the past that there were companies that sold added tradelines too. That seems like a lifetime ago.
Palm Springs Mortgage Guy
Feb 15, 2008 10:59 AM
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