Authorized Users Can Help Boost Your Credit Score
When it comes to credit, there are 6 boxes that affect your score: payment history, credit card use, derogatory mark, credit age, total accounts, and hard inquiries. A category that many feel no control over yet one of the easiest techniques to boost your score 100+ points in less than 30 days is the average credit age section. In fact this category makes up 15% towards your FICO score which is even more than your hard inquiries and total accounts. To be at the best position for this box, you will want to have at least 9 years of credit age. See to get your average credit age the bureaus are adding to the total age of all your open and closed accounts you’ve ever had then dividing that number of years and months into however many accounts were just added together to in return come up with your average credit age. While you may feel stuck because you can’t time travel back to the past and open new accounts to have been aged perfectly now overtime for you; you can however be added as an Authorized User to friends or families credit cards that have great payment history and of course very very old seasoned cards to help average out your age over ideally 9 years. This is the financial literacy they don’t teach in school and how the wealthy stay wealthy. Authorized users or (AU’s for short) are a great strategy to help boost your credit score by adding more age, accounts, and ideally lowering your utilization on your credit profile. Yes you read that right, this is so because AU’s effect 3 out of the 6 boxes that make up your credit profile totaling 55% of your FICO. First, let’s go over what is an authorized user? An Authorized user is simply an individual known as the main primary card holder or ”seller” that owns the open active card in good status who then allows a “buyer” someone who could benefit from having that good credit card added to their profile for a certain time frame usually about 2 statement closing dates or 2 months. So this is more of a lease than a sale itself. And yes this is a legitimate business that’s been around for decades allowing poor or bare bone credit profiles to piggyback off of others with excellent credit in less than 30 days max. What this process looks like is the seller needs the buyer’s full name, date of birth, and social security number to be put on the account. Any additional information such as a phone number or the address where the card will be delivered to will be the seller’s information; that way the buyer never gets access to the card itself but still reaps the benefits of improving those 3 boxes. Authorized users may be issued their own credit card with their name on it but the account belongs to the primary cardholder and should be sent to the seller’s address to be simply activated, cut up, and thrown away afterwards. Does this mean the authorized user a.k.a. buyer has access to my account and personal information? No. When you add someone as an authorized user, they cannot make any changes to your account because they don’t know any of your passwords or security questions and the card won’t be in their possession. Okay so how does an authorized user help my score? By being an authorized user, you reap all the benefits from the primary cardholder like higher credit age, increasing your total account to ideally 21+, and lowering your total utilization below 9% or in top idealist category 1–3% max. Keep in mind that you get both the good and bad from their credit card. For example, if the primary cardholder has late payments, you will also have late payments too that will now show up on your profile so please be cautious of choosing where to be an authorized user. The seller could have horrible credit with bankruptcies, etc. however the card they add you to must be clean with nothing negative and that will for sure improve your scores.
How to Find The Right Authorized Users
- Circle of Influence
When looking for places to become an authorized user, we recommend your circle of influence like family and friends first as this will be the cheapest route. As long as the seller is educated and confidently know this won’t hurt their credit profile at all it tends to be a no brainer because it take only moments to add an individual- very simple, it feels good helping someone else out in a huge way, and the seller could potentially make some quick easy money from it making such a great win-win scenario. It is crucial that if they have never done this before, you’re going to want to take the time to educate them and answer any questions they may have. Part of being in the “Credit Counsel Elite” educational program, we walk you through how and what to say so your chances are higher towards creating that win-win scenario
2. Third-Party Services
Authorized users business has been around since the beginning of credit cards. There are many companies out there who sell tradelines but all with a premium price due to their business fees, taxes, and high overhead like running the website or paying for the management which is why we don’t like to recommend this way. The buyers pay way too much for not enough to truly help them and the sellers get next to nothing in return because of the huge middleman gap. That’s why we created a space for sellers to get more and buyers to pay less for exactly what they need and not just what they’re sold to create a true win-win experience.
3. Credit Counsel Elite
What stands apart from working with “Credit Counsel Elite” opposed to third party services is that we have the ultimate Authorized User Calculator Software where it shows you exactly the amount of credit age you need to get the results you deserve saving you money, time and energy. On top of that, there are no middleman fees as you are dealing directly with us and the sellers. The education we provide is the clear difference with knowing the step by step methods we teach you how to even get authorized users for free.
Conclusion
Authorized users are powerful if done correctly and can be the missing puzzle to many of your initial goals. Credit has transformed my life and became the bridge that helped me reach financial freedom as well as opened up many opportunities which is why I am very passionate about sharing “Credit Counsel Elite’’ with you. “Credit Counsel Elite’’ is an exclusive educational program and mastermind group that shares everything you need to know about credit and how to make money using credit. To learn more, please visit our website: https://www.CreditCounselElite.com/
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