Question from Hf: Had my partner add me as an authorized user on their credit card, with a significant limit and a decade of perfect payment history, I was expecting a substantial increase in my credit score. However, it only increased by 2 points. How can that be?
Hello,
It’s understandable that you expected a significant increase in your credit score after becoming an authorized user on your partner’s credit card, especially given the card’s high limit and perfect payment history. However, the impact on your credit score can vary based on several factors.
Factors Influencing Credit Score Increase
Firstly, it’s important to understand that credit scores are calculated using a complex algorithm that takes into account a variety of factors. These include:
- Your payment history
- The amount of debt you owe
- The length of your credit history
- New credit
- The types of credit you use
Becoming an authorized user on a credit card can positively impact your credit score, but the extent of the impact can vary.
Impact of Being an Authorized User
According to Experian, one of the three major credit bureaus, being added as an authorized user can help a person build or improve their credit score. However, the impact is generally more significant for those with little or no credit history. If you already have a substantial credit history, the addition of your partner’s credit card might not make a significant difference.
Moreover, not all credit scoring models consider authorized user accounts. For instance, while FICO includes authorized user accounts in its calculations, VantageScore does not. Therefore, the impact on your credit score could be minimal if the scoring model used does not consider authorized user accounts.
Other Factors to Consider
It’s also worth noting that the credit limit and payment history of the card you’ve been added to are just two factors that can influence your credit score. Other factors, such as your overall debt level and the number of new credit inquiries, can also play a role.
For example, if you’ve recently applied for several new lines of credit, this could have a negative impact on your score. Similarly, if you have a high level of debt relative to your income, this could also limit the increase in your credit score.
In conclusion, while becoming an authorized user on a credit card can help improve your credit score, the impact can vary based on a variety of factors. It’s always a good idea to monitor your credit report regularly and take steps to manage your credit responsibly.
