Authorized Credit Card User
This will quickly raise your credit scores…
In 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 scores! Since 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.
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