Improve Your Credit Score with Authorized Users and Tradelines | BeatTheBush

Adding an Authorized User poses some pros and cons for both the person being added and the person adding. Let me go through the items one should be aware of before both parties jump into being intertwined in their finances. One should know outright that adding someone with good credit does not magically make that person have a jump in credit score. The jump is modest and will take some time before one will see the increase. The person adding an authorized user should also beware that they are legally responsible for the debt incurred by the authorized user.

How’s it going everybody this is pete the bush today i’m going to talk about adding an authorized user to your credit card account or being added to one this is otherwise known as trade lines just to set expectations it will improve your credit score a little bit over time it will not suddenly just bump your credit score up really high by a hundred points let’s say

All of this also depends on what your lender looks at in terms of credit score sometimes they might look at a different version vantage – or 3.0 2.0 fico score eight or nine things like that all of those differ a little bit and adding an authorized user depending on the version that they look at will affect it or not at all actually based on my previous videos where

I showed i have a really high credit score above eight hundred twenty multiple people and individuals have asked me if they can pay me so that i can add them to my credit report this isn’t a way to help them improve their credit score now of course i refused all of these because i don’t really believe in adding other people to my own personal credit report when

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I don’t even know the person at all there’s probably minimal risk if i don’t issue them a credit card but it’s also the principle of the matter i didn’t really like it doesn’t rub me very well in any case if you are in the position to add someone to your credit line here are the things to consider the first one is if you want to add a child they must be between

Age thirteen and sixteen different cards have different requirements so you have to just check with your credit card if you can do so you also need to figure out if adding them to your credit card will actually get reported to the credit bureaus which in turn will mean if their credit report will actually improve or not generally the bigger branches will report

The authorized user activity to the credit bureaus before you actually go and add an authorized user you have to note that you are legally responsible for their purchases and fees that are incurred this is probably the point that made me not want to add anyone just in case there are some loopholes that i don’t know about where they can somehow get a credit card

So that they can charge it all online account then i’d be responsible for whatever more the fees that they paid me in order to add them so i just don’t want to deal with that at all you could also set up a charge limit alert just in case there’s a really large charge on the authorized user credit card then you can actually you and see what’s going on now you can

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Actually add a person to your career report and not actually issue a new card so that they can take it and spend it anywhere they like when you do this authorized user cannot go and order themselves a card either so you’re safe that way if you choose not to issue a card this is what some credit repair agencies like to do is just find some other person that has

Really good credit score and then add the person that they’re trying to fix all to their credit via a payment to the person of course this just doesn’t feel right to me i think there’s other ways to improve your credit i have other videos i’ll leave one right here on how to actually improve your credit on your own if you add an authorized user you only get one

Bill as well and i always goes to the primary cardholder now if you do add an authorized user and they have a credit card and they can go and spend whatever they want you need to have a plan for whatever purchases that gets on the card how can they pay you back on that credit card you want some contingency plan because if they go around maxing out their credit

Card who is gonna be responsible to pay it legally the primary account holder is supposed to pay for it if the authorized user just kind of runs away and never refused to pay well you can’t really do anything about it the last thing is as a primary account holder that you add someone you actually will not see their name on your own credit report it just looks as

If there’s no authorized user so if you’re able to convince someone with a really high credit score to add you into the credit line then it’s actually usually a very good thing it can actually improve your credit score a little bit over time if that credit card account is handled well such as paying on time every single month however if you get added to a credit

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Card and the primary account holder is not very responsible and sometimes they miss a payment or two it can actually negatively affect your own credit score of course like i mentioned before the negativity really depends on the credit scoring model that the lender is actually using when they look at certain ones it may or may not affect you of course if you find

That it’s actually negatively affecting you you can go and track down every single credit bureau the three of them and then ask to have that mark removed because it’s not actually part of your credit so if you look at if being added is actually good for you generally the case is yes it’s good even if it’s bad you can make it good i hope this helps you in there

Sam more about authorized users and trade lines in general if you’re interested in supporting this channel i’ll have an audible link down in the video description below where you can get a free audiobook and if you cancel before the trial period ends you can still keep the oto book and you can still help enough at this channel i also have a patreon over here and

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Improve Your Credit Score with Authorized Users and Tradelines | BeatTheBush By BeatTheBush

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