The Barrington Financial Group, Inc.

Beware of the internet websites that claim they can "raise your credit score" by adding authorized user accounts to your credit file.  When you have a credit card with any bank or department store, you have the right to add another person to that account as an authorized user, which allows that person, often a family member, to use your card.  They are issued a secondary card on your account for their use.  Note: their card, your account.  You are 100% liable for all the charges they make.  Over the past several years there have been internet sites popping up, claiming they can give you as many authorized user cards as you want, for a FEE.

Without going into the complexity of the Credit Scoring System (covered in another section of this website), by adding these authorized user accounts, in some cases a consumer is able to trick the scoring system and raise their credit score.  However, in order for this to work, your credit report must fit the right credit model established by the credit system, FICO (Fair Isaac).  

For example, if a person had no credit or very poor credit, adding them as an authorized user on the account of a person with very good or excellent credit could raise their credit score.  The person with the poor credit report now appears to have good accounts that may have years of history on them.  This tactic tricked the system and raised that person?s score.  

On the other hand, let?s say a person had good credit, but wants to raise their score even higher. If they already had many open accounts, then adding authorized user accounts could actually LOWER their score.  There are several variables that can affect the score being raised or lowered with this tactic.

However, in 2006 and 2007, Fair Isaac, and the three major credit bureaus realized this was a big problem and have now STOPPED allowing the addition of these accounts to raise credit scores. Some creditors are not even putting the account on the authorized individual?s credit report. However, if the account is allowed on the report, the addition of the account can still LOWER your score by having a large balance on the account.  This debt is factored into your credit score, and higher debt means a lower score in this case.  Since there is no longer an up side to this tactic but the down side does still exist, there is no good reason to attempt adding authorized user accounts solely for the purpose of manipulating credit scores.