How Many Points Will My Credit Score Go Up Being Added as Authorized User?
Your credit score plays a crucial role in your financial life. It determines your ability to obtain loans, credit cards, and even influences the interest rates you’ll be offered. If you’re looking to improve your credit score, being added as an authorized user on someone else’s credit card can be a smart strategy. However, the extent to which your score will increase varies depending on several factors. In this article, we will explore how many points your credit score may go up when you become an authorized user, along with some frequently asked questions on this topic.
How Does Becoming an Authorized User Affect Your Credit Score?
When you become an authorized user on someone else’s credit card, their credit history and usage are added to your credit report. This means that the credit card’s payment history, credit limit, and utilization rate will now be considered when calculating your credit score. If the primary cardholder has a strong credit history with timely payments and low credit utilization, your credit score is likely to benefit.
How Many Points Will Your Credit Score Increase?
The impact on your credit score as an authorized user can vary. On average, adding yourself as an authorized user can boost your score by around 30 to 50 points. However, some individuals have reported increases of up to 100 points or more. The actual increase depends on several factors, such as:
1. Length of Credit History: If the primary cardholder has had a long-standing credit account, it can positively impact your credit score.
2. Payment History: Consistent on-time payments by the primary cardholder can significantly improve your credit score.
3. Credit Utilization: If the primary cardholder maintains a low credit utilization rate, your score will benefit from the lower overall credit utilization.
4. Number of Accounts: The more accounts you’re added to, the more your credit score may increase. However, it’s important to note that being added to multiple accounts within a short period can raise red flags for lenders.
Frequently Asked Questions:
1. Will the primary cardholder be affected by my credit history as an authorized user?
No, your credit history as an authorized user will not affect the primary cardholder’s credit score. They remain responsible for their own payments and usage.
2. How long does it take for the credit score increase to reflect?
The credit score increase typically reflects within a few months, but it may vary depending on how often the credit card issuer reports to the credit bureaus.
3. Can being removed as an authorized user negatively impact my credit score?
If you’re removed as an authorized user from a credit card with a negative payment history or high credit utilization, your credit score may decrease. However, if the primary cardholder has a positive credit history, the impact will likely be minimal.
4. Can becoming an authorized user help build credit if I have no credit history?
Yes, being added as an authorized user can help build credit if you have no credit history of your own. However, it’s important to establish your own credit accounts to build a strong credit profile.
5. Can I choose which credit card account to be added to?
Yes, you can request to be added as an authorized user to a specific credit card account. However, the primary cardholder has the final decision on whether to add you or not.
In conclusion, being added as an authorized user on someone else’s credit card can positively impact your credit score. While the average increase is around 30 to 50 points, it can vary based on several factors. It’s crucial to ensure that the primary cardholder has a strong credit history and practices responsible credit usage. Remember, becoming an authorized user should be just one part of your overall credit-building strategy, and it’s essential to establish your own credit accounts to maintain a healthy credit profile.