The authorized user trick has been and for decades. Yet it is something rarely used until someone seeks out credit repair services, where clients are educated on this topic. This is one of the many tools in a credit repair company’s toolbox. We’ve used this trick to help clients qualify and/or get a better rate on a mortgage. It is also a great way to
build credit, or get your kid’s credit off to an amazing head start. In this article today we are going to discuss the authorized user trick, its advantages and disadvantages, and how to take advantage of this awesome strategy. Credit Wellness Solutions, can guide you though the entire process with our free credit analysis, game plan, and consultation. Click the button below to schedule your consultation.
How Does The Authorized User Trick Work?
It’s quite simple, either you can become an authorized user by getting a friend or a family member to ad you to their credit card, or you can use a tradeline broker service, such as GCL Credit, or Tradeline Supply Company. So how does being an authorized user work, and how does it affect your credit score? Well an authorized user on a credit
card piggybacks on the cardholder’s credit history of that account. A card is issued with your name on it, and you can use it as if it were yours. However, you are not financially liable for making payments on the card, nor held responsible should the cardholder default on their debt. Since the account’s history is reported on your credit report, it can affect your credit score tremendously. There are some factors to consider which we will discuss later in this article.
The Authorized User Trick Is Perfect For Credit Repair Clients
Credit Repair Clients love this trick because of the credit score boost the authorized user trick provides. It is perfect to help you qualify for your own credit cards to build credit while credit repair is working in the background to get the negative items off your credit report. Our credit repair program can help you with this process, and even better, help you get paid to fix your credit!
Using The Authorized User Trick For The Mortgage Process
One of the things we love about the authorized user trick is the fact that they can help you qualify for a mortgage loan, or qualify for a lower interest rate. We have seen this first hand. One of our clients got over a 40 point boost on their mortgage score, and their interest rate dropped over 1%! This can be a powerful asset if you are seeking to buy a home, or get better terms on your loan application. Be sure to check with your lender as not all lenders will count authorized user accounts. Credit Wellness Solutions is connected with many mortgage lenders and can refer you to a lender that accepts authorized user accounts.
The Authorized User Trick Is Perfect For Building Your Teen’s Credit, Or For Building Credit In General
As the old saying goes, bad credit is better than no credit. We’ve all been there, getting denied for credit because you have no credit history. Since an authorized user gets the account history of the credit card reported on their credit report, it’s a no-brainer to say that the authorized user trick is
the perfect tool to build credit for your kids (when they are of age), or to build your own credit. Since most lenders like to see prior credit history, adding your kids, or becoming an authorized user on someone’s card, will allow you to obtain your own credit. It’s a way to jumpstart your kid’s, or your future. Credit Wellness Solutions can help you with authorized user accounts, and help you with other credit building ideas, and products. Click the button below to see all of our credit building options, and if you need assistance, schedule a free consultation. We love helping people build credit.
Things To Consider Before Using The Authorized User Trick
Like anything else, there are some cautions, or pros and cons to consider before employing the authorized user trick. This is a powerful tool if used properly, or disastrous if you use it improperly, or choose the wrong card or source. Here is a list of things to consider.
- Both The Negative And Positive Report – We recommend you know your source. Make sure the account is in good order. No late pays in the past 2 years, and the card is not maxed out. The account should not carry a balance greater than 30% of the card’s limit.
- Choose What Is Right For Your Credit Profile – Know you’re credit profile needs if you are rebuilding your credit. We’ve written an article that speaks about the credit scoring factors (Click Here To Read Article). Look at your credit report and determine your credit profile’s needs, and find the right account to use to fill what is lacking. (ex If your credit age is young, find an account that is older). Schedule a consultation for a free credit analysis to see what your credit profile needs are.
- The Authorized User Is Not Financially Liable For The Account – If you are adding your child, or someone as an authorized user on your card, and you decide to give them the card issued in their name, just know you are liable for everything they charge on that card. Decide wisely if you want to take that risk. It’s ok to destroy the authorized user’s card and help them out without risking your own credit in the process.
- Beware Of Tradeline Scammers – If you have to purchase an authorized user tradeline, be sure to purchase the account from a reliable tradeline broker. There are scammers that take advantage in any business or industry. We have 2 reliable services on our website, Tradeline Supply Company, or GCL Credit. Click Here to go to our credit building page where you can find links to either.
- Purchased Authorized User Tradelines Are Only For A Short Period – Typically, when you purchase an authorized user tradeline, you are only renting it for a short period of time. Likely 2-3 credit reporting cycles tops. You typically want to do this as a last resort when you are trying to get a quick boost on your score to qualify for a loan, or to obtain your own credit.
- Authorized User Tradelines Can Be Pricey – Costs can vary based on the quality of the account (age, credit limit, utilization ratios), and the length of time they report. You can expect to pay anywhere between $250 – $1,500. Although, the more expensive ones are best, you can still snag good tradelines for a reasonable price.
Our agents at Credit Wellness Solutions are more than happy to help you navigate the tricky world of authorized user accounts, and tradeline brokers. Click the button below to schedule a free consultation with us, and we can assist you through the process and help you make the most impact for your credit score.
Recommended Authorized User Tradeline Brokers
For some of the reasons above, if you are looking to purchase an authorized user tradeline, it is important to purchase them from a reliable and trustworthy source. Credit Wellness Solutions has done some of the legwork for you. Below are 2 very reliable sources that you can trust. Both have been vetted by credit repair companies, and the industry.
Tradeline Supply Company
Tradeline Supply Company is one of the largest, most trustworthy, and reputable sources for authorized user tradelines. They are endorsed by one of the credit industry’s leading experts, John Ulzheimer. John has been featured on several news networks, and is a speaker at several huge events for the credit, and credit repair industries. Tradeline Supply Company has a very educational YouTube channel that features John Ulzheimer that gives many pointers, and tells you anything you could ever want to know about credit. Click Here for their YouTube Channel. If you want to check out Tradeline Supply, Click Here.
GCL Credit
GCL Credit is another reputable tradeline broker that our CEO knows personally. GCL also offers what we call “primary tradelines” that can show more extensive credit which helps those with little to no credit history qualify for a mortgage. Click here to get in touch with GCL Credit.
Final Thoughts
The Authorized User Trick has many advantages to help you build, rebuild, or boost your credit. It has been used widely to help with mortgage qualification, or to even get better interest rates and terms. It is one of the credit repair industry’s best tools in their tool bag to help their clients fix their credit. Whether you buy a tradeline, or use your family, the authorized user trick is just the best asset you can have to accomplish the mission
