Raise Credit Scores By Becoming An Authorized User

Posted on Updated on

This will quickly raise your credit scores…

How to raise my credit scoresIn today’s world more and more is based on credit.  The ability to purchase, for emergencies, to qualify for a job and more.  The downside is that more and more companies (insurance companies especially) are using credit and credit scores to qualify you.  If you don’t have good credit (above 740 FICO scores) you will most likely pay higher rates and fees because of it.

Lenders are not the only ones using credit to qualify you!

One answer is to become an authorized user on someone else’s credit card that has a better credit rating. The process is simple, you and the other party (spouse, sibling, friend, co-worker, etc.) agree that although you are an authorized user, you will not use this account to purchase.  The agreement is only to have that good credit card history added to your credit profile and nothing more.  Let’s say this other person has had this card for more than five(5) years, that adds five years of positive credit history to your credit profile instantly.

But lenders know this trick, so why do it anyway?

Since 50% of your credit score is made up of using credit and credit history, this will definitely raise your credit scoresSince things like car insurance and home owners insurance are also based on having good credit scores, the impact will be to reduce the insurance premiums you will pay.  When it comes to a mortgage, this may not be effective as lenders often use their own criteria and often discount the credit history when you are an authorized user.

Too many benefits not to do this!

There really is no downside.  If adding that much positive credit history raises your credit scores say 100 points, you are at an advantage when you go to buy a car, furniture, appliances and more.  Even in applying for another credit card, your credit report will look great. You will need to monitor that account to be sure it remains in good standing.  Once you have re-established your won credit, you can drop the arrangement.

Advertisements

6 thoughts on “Raise Credit Scores By Becoming An Authorized User

    […] Raise Credit Scores By Becoming An Authorized User (thecreditxpert.wordpress.com) […]

    Louisville Kentucky Mortgage said:
    September 25, 2013 at 3:20 pm

    Reblogged this on Kentucky First Time Home Buyer Mortgage Loan and commented:
    Authorized Credit Card User, Improve Credit Scores, Raise credit scores and tagged authorized credit card user, authorized user, credit score, credit scores, improve credit score, improve credit scores, raise credit score, raise credit scores, rebuild credit, rebuild credit scores.

    Louisville Kentucky Mortgage said:
    September 25, 2013 at 3:21 pm

    adding that much positive credit history raises your credit scores s

    Joel Lobb (NMLS#57916)
    Senior Loan Officer
    502-905-3708 cell
    502-813-2795 fax
    kentuckyloan@gmail.com

    Key Financial Mortgage Co. (NMLS #1800)*
    107 South Hurstbourne Parkway*
    Louisville, KY 40222*
    http://mylouisvillekentuckymortgage.com

    […] Raise Credit Scores By Becoming An Authorized User. […]

    […] Raise Credit Scores By Becoming An Authorized User (thecreditxpert.wordpress.com) […]

    How To Raise My Credit Score(s) « The Credit Expert said:
    October 4, 2013 at 2:28 pm

    […] possibility is to become an “authorized user” on someone else’s account (like a sibling or parent).  This gives you their great credit […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s