Updated for 2016 – This information is current. If you have questions or comments, please contact us.
There are many myths, misconceptions, and misunderstandings about what an Authorized User Tradeline is and how to use it properly. Some say that it helps your Credit Score, some say that it hurts your Credit. Most people are using these seasoned tradeline accounts as a way to improve their FICO scores or to start building a Credit History. First, you must understand how your credit score works, then you can start working to improve your credit. But like most good things, there are people out there who exploit them for bad. I am here to give you all the facts about Authorized User Accounts and explain how to properly, legally and ethically become an Authorized User on a Credit Card so you can adopt a seasoned tradeline on your Credit Report.
What is an Authorized User Tradeline?
An Authorized User is someone who is “authorized” to be on a Credit Card Account. This means that they are authorized to talk to the bank about the account, make payments on the account and agree to the account reporting on their Credit Report. When you become an Authorized User on someone’s Credit Card account, you agree to adopt the future and past credit history of the account. Some people call this a Seasoned Tradeline, since you are adopting the credit history and past payment history of the account. This means that if the Credit Account has been open for 8 years, has always been paid on time, once you become an Authorized User on the account, you will adopt the 8 year payment history on your Credit.
Authorized User Accounts are typically only for Credit Cards. Auto Loans and other installment loans can add you to an account as a co-borrower. There is a difference in the risk between an Authorized User and Co-Borrower. We don’t recommend becoming a co-borrower. You will usually have to apply to become a co-borrower and that means having them pull a copy of your Credit Report. This will cause an inquiry and there is a possibility they could deny your application if you don’t have good credit. If you are approved, you will have financial responsibility if this account goes delinquent.
To become an Authorized User on a credit card, there is no application, no credit check, no inquiry on your credit report and no risk of being denied. If the account holder misses a payment or defaults on the balance, you will be able to work with iPower Credit Services to have this information disputed and removed from your credit history.
How To Boost My Credit Score With An Authorized User Tradeline
Being added to a credit card account as an Authorized User can help improve your Credit Scores since you adopt the credit history from that creditor. Within 10-60 days of being added to a credit tradeline as an Authorized User, you will see the account report on your credit and your credit scores will adjust accordingly. If you have a lot of debt collection accounts, or medical debt collections, past late payments or negative credit, you will not receive as much of a credit score improvement and you’ll want to seek professional help to try to remove these accounts from your credit history. You can call us to and we’ll review your case. However if you add the tradelines like we do to a new CPN file like the ones on our Packages page you will have a 725+ score in as little as 30 days on a new Credit Privacy Number or what is also referred to as a Secondary Credit Number (SCN and CPN are one in the same thing).
Picking The Right Authorized User Tradeline
You want to make sure that you follow these simple rules below before you add a tradeline to your account. If you follow these rules, the Authorized User Tradeline will help improve your credit scores. If you don’t want to have an Authorized User Tradeline, you can start building your credit with a secured credit card.
Account Should Be Open For A Minimum Of 2 Years
You only want to be added to an account if it is over 2 years old. Anything younger won’t give you as much of a benefit until the account has seen at least 24 months of on time payments. You also want to find an Authorized User Account that has the longest account history. You adopt it all, even if it is 10+ years of history.
No Past Late Payments
The Credit Card must have NO past late payments. We gurentee that our authorized user accounts has never had any past late payments on the account/s. You adopt the credit history of this account.
Maintain A Low Revolving Balance
You will receive the most credit score improvement by becoming authorized user on a seasoned tradeline that currently has and maintains a low balance on the account. Your Credit Score is heavily weighted upon your revolving debt ratio, so make sure that you are not being added to an account that is frequently maxed out or carrying a balance over 50% of the available credit limit. None of our accounts are over 25% balance since we just maintain the accounts solely for adding authorized users like you.
Keep The Account Open
An Authorized User Tradeline can only boost your credit scores if it is currently open. Are accounts stay open indefinitely.
Follow These Simple Rules
If you follow these simple rules, you will ensure that you have a seasoned Authorized User Tradeline that will positively benefit your credit history and improve your credit scores.
What is Piggybacking On An Authorized User Tradeline?
Piggybacking on an Authorized User Tradeline is a term that is typically indicative of “grey hat” credit tactics. This means that they are not illegal. Piggybacking is a term that typically means you are renting, leasing or buying a seasoned Authorized User Tradeline as an attempt to improve your Credit Scores.
Can A Seasoned Authorized User Tradeline Hurt My Credit?
Building your credit is similar to building a permanent structure; If you build a solid foundation, follow code, use quality planning and professionals, your structure will be there forever. If you are looking to cut corners, your structure will not be last for the long haul. Always be wise when trying to improve your credit scores. We look forward to improving and maximizing your Credit Scores, legally and ethically.