Becoming an authorized user on someone else’s credit card can have a positive impact on your credit score, but the extent of the increase will depend on various factors. One of the most important factors is the credit history and usage of the account you are added to.
If you are added as an authorized user to an old account with a high credit line, low utilization, and a pristine payment history, you are likely to see significant improvements in your credit score. This is because credit scores are calculated based on several factors, including the length of your credit history, the amount of credit you have available to you, and your payment history.
By being added to an old account, you will benefit from the account’s established credit history. This can help improve the average age of your credit accounts, which is a positive factor in credit scoring. The longer your credit history, the more reliable you appear to lenders.
Additionally, being added to an account with a high credit line can increase your overall available credit. Credit utilization, or the amount of credit you are using compared to your total available credit, is an important factor in credit scoring. By having access to more credit, your utilization ratio will decrease, which is seen as a positive by credit scoring models.
Furthermore, having a pristine payment history on the account you are added to will reflect positively on your credit score. Payment history is the most influential factor in determining credit scores, so having a record of on-time payments can significantly boost your creditworthiness.
It’s important to note that the impact of becoming an authorized user may vary depending on the scoring model used to calculate your credit score. Some scoring models may weigh authorized user accounts less heavily than others, while some may not consider them at all. It’s always a good idea to check with the credit bureau or lender to understand how your credit score is calculated.
In terms of the specific increase in your credit score, it is difficult to provide an exact number as credit scoring algorithms are proprietary and not publicly disclosed. However, based on personal experiences and observations, it is not uncommon for an authorized user to see a credit score increase of 30-50 points or more within a few months of being added to an account with a strong credit history.
It’s important to remember that even though becoming an authorized user can have a positive impact on your credit score, it does not guarantee that you will be approved for credit on your own. Lenders consider various factors when evaluating credit applications, including income, employment history, and other aspects of your financial profile.
Becoming an authorized user on an old account with a high credit line, low utilization, and a pristine payment history can lead to significant improvements in your credit score. While the exact increase is difficult to predict, it is not uncommon to see a credit score increase of 30-50 points or more within a few months. However, it’s essential to remember that credit scores are just one aspect of your overall financial health, and lenders consider multiple factors when making credit decisions.