Applying for credit cards

[Canadiandggal 49]

I am going to say a no no for lying about your income but I have to say that I am on three of my husbands credit cards as AU and I checked my freecreditreport.com and I have 5 months worth of on time payments etc so I have to say that it still works.

[Deputy Purple 1,294]

Then explain how in the 3rd or 4th quarter of 2009, when I added my wife as an authorized user, she now shows credit history and on-time payments going back to 2007?

Within months she has a credit score of over 700....Approved for a home all on her own on part-time minimum wage employment.

I credit her being added as an authorized user for all of these amazing credit-related perks she has been given in her short time in the US.

Just because something shows on your credit report doesn't mean it is used to calculate a credit score.

Authorized User accounts will be listed but current scoring models ignore them.

Some financial institutions don't update their policies very quickly, we still have client using 1995 versions of FICO and other score models. They are stupid for doing because the applicants are being scored on 1995 expected incomes in addition to not being adjusted for scams such as the authorized user stuff.

Do you have any idea how many different scoring models there are? My programming code recognizes over 200 different scoring models and we can internally calculate over 50 more!

Again, just because you can see it on a printed Credit Report that doesn't mean it's getting counted in a Scoring Model.

Also, It's not uncommon for someone with a thin credit file to have a high score, these are referred to in the industry as "Fragile Scores" because they are high only due to a lack of negative factors not due to the presence of positive factors. A good underwriter would not approve a loan in the situation you described.

[Deputy Purple 1,294]

I am on three of my husbands credit cards as AU and I checked my freecreditreport.com and I have 5 months worth of on time payments etc so I have to say that it still works.

You're 100% correct that it shows on your report but there is also a code on that line to say what position you hold on the account (Individual Owner/Joint Owner/Authorized User).

If you are the Authorized User and your report is parsed correctly then you don't get points for the age of the account or it's payment history because You are not responsible for the account. You don't get a bill in your name, you didn't sign an account holder's agreement with the bank, you can't be sued if the account goes unpaid.

Think of it like this:

I have 4 phone lines on my AT&T Account.

I am the account holder, have the signed contract with AT&T.

My wife, daughter & a friend use the 3 other lines. They are authorized users of my account but they never signed an agreement with AT&T.

If I don't pay the bill AT&T can only go after me for the money.

That is the difference between authorized user & account holder. Modern Scoring Models understand this and take into account how the Authorized User Issue has been fraudulently abused in the past.

[Moosker 7]

All this to say......start building credit now on your own. Many VJ members start off with a Capital One card, with no income sometimes, no prior credit history, and a $500 limit. (Oh, and don't lie about your income, it's not worth it.) Pay it off the card each and every month to slowly build up your credit. Eventually you can ask for limit increases, and with a good payment history, typically they will slowly raise your limit.

[웃 910]

Just because something shows on your credit report doesn't mean it is used to calculate a credit score.

Authorized User accounts will be listed but current scoring models ignore them.

Some financial institutions don't update their policies very quickly, we still have client using 1995 versions of FICO and other score models. They are stupid for doing because the applicants are being scored on 1995 expected incomes in addition to not being adjusted for scams such as the authorized user stuff.

Do you have any idea how many different scoring models there are? My programming code recognizes over 200 different scoring models and we can internally calculate over 50 more!

Again, just because you can see it on a printed Credit Report that doesn't mean it's getting counted in a Scoring Model.

Also, It's not uncommon for someone with a thin credit file to have a high score, these are referred to in the industry as "Fragile Scores" because they are high only due to a lack of negative factors not due to the presence of positive factors. A good underwriter would not approve a loan in the situation you described.

Did I mention she was approved off the bat from Chase for a $5,000 credit limit within 6 months of being added as an AU? I truly have credit going back to 2007 (still paper thin) and I cannot get a limit that high.

The only possible explanation is that Chase saw that she had a high credit score and a history over 3 years.

In reality she had been added as an authorized user in the 4th quarter of 2009 and had a secured credit card with a $400 limit for a few months when she was approved for the $5,000 chase card...People brand new to credit do not get these type of approvals...Case in point, see all the people talking about the Capital One card with a $500 limit that if you fill your gas tank up you are already using 20% of your total limit..

[Udella&Wiz 325]

All this to say......start building credit now on your own. Many VJ members start off with a Capital One card, with no income sometimes, no prior credit history, and a $500 limit. (Oh, and don't lie about your income, it's not worth it.) Pay it off the card each and every month to slowly build up your credit. Eventually you can ask for limit increases, and with a good payment history, typically they will slowly raise your limit.

Yep - worked that way for me - despite my lovely CDn credit rating back home. Sucks but if worst comes to worst you start small and move up.

[Deputy Purple 1,294]

Did I mention she was approved off the bat from Chase for a $5,000 credit limit within 6 months of being added as an AU? I truly have credit going back to 2007 (still paper thin) and I cannot get a limit that high.

The only possible explanation is that Chase saw that she had a high credit score and a history over 3 years.

In reality she had been added as an authorized user in the 4th quarter of 2009 and had a secured credit card with a $400 limit for a few months when she was approved for the $5,000 chase card...People brand new to credit do not get these type of approvals...Case in point, see all the people talking about the Capital One card with a $500 limit that if you fill your gas tank up you are already using 20% of your total limit..

Actually, from your accounting in another thread it took 13 months... or was this post inaccurate?

The secured card had more to do with propping up her fragile score than the authorized user account! You also fail to mention if you have a "Banking Relationship" with Chase or not.

And I could give you at least 5 other more plausible explanations for the timeline in your other post. Of course given your advice to lie on credit applications I would expect that you always listed your wife's income as nearly $100,000 annually except for the mortgage application where they require proof of income.

[Canadiandggal 49]

Thanks guys due to this topic I decided to apply for a newcomers capital one card and automatically got approved. I have been here for 5 months

http://www.capitalone.com/creditcards/newcomer-credit-card/a/?linkid=WWW_1010_CARD_TGUNS12_CCBRWPOP_C3_31_T_CP62721AW

[Flames9_RN 358]

Funny how when one tells one to lie--you lose all credibility!!!

[Kimbear 53]

Someone may have already shared this info. but thought I'd post in any case.

Just off the phone with Bank of America credit cards - they received my application and had some additional questions for me. As I'm not working/can't work till i get my green card she suggested they pull my Canadian Credit history which would give me a much higher credit limit to start with instead of the typical really low one for immigrants with no job/no US credit history.

Isn't that great? Dunno if it's the same for other US banks, would assume so.

Actually they told me the same thing regarding our preapproval for a mortgage. Although they info can't be used the same way as US based info it shows a history be it good or bad and can help contribute. I was surprised lol.

[TheFantastics09 19]

All this to say......start building credit now on your own. Many VJ members start off with a Capital One card, with no income sometimes, no prior credit history, and a $500 limit. (Oh, and don't lie about your income, it's not worth it.) Pay it off the card each and every month to slowly build up your credit. Eventually you can ask for limit increases, and with a good payment history, typically they will slowly raise your limit.

They Capital One card you are talking about, is it a secured card or an actual credit card from the bank?

Edited March 16, 2011 by TheFantastics09

[Deputy Purple 1,294]

They Capital One card you are talking about, is it a secured card or an actual credit card from the bank?

It's a real unsecured credit card. My wife was approved for $500 without any prior credit or a job!

[Canadiandggal 49]

It's a real unsecured credit card. My wife was approved for $500 without any prior credit or a job!

yup i was approved the other day for a capital one $500 limit. i have no job so it works for me

[Brenda2010 1]

Actually they told me the same thing regarding our preapproval for a mortgage. Although they info can't be used the same way as US based info it shows a history be it good or bad and can help contribute. I was surprised lol.

Well that's good to know...we'll be buying a house in the next couple months so will be sure to mention it, thanks!

[Brenda2010 1]

Can't believe I forgot to mention that if you've had a Canadian issued Amex for more than 12 months and are in good standing they'll issue you a US one hassle free - I called and was approved within minutes, card arrived 3 days later. Again, they just refer to your Canadian credit history.