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Authorized User Accounts – Still a Viable Method of Credit Repair
By admin | October 9, 2011
You might have heard of it, the authorized user method of credit repair. The idea is that someone that has a good credit rating will add another person to an account that has maintained a good record with each of the three credit bureaus. (Equifax, Transunion and Experian)
The result is that the account will show up on the person’s credit that was added to the account thereby boosting the individual’s score that was added. Not only will the score boost take place but now the person that was added has an account with a good history.
Credit Repair
This easily can add a quick 100 points to your credit score until recently…
The company that came up with the scoring model, Fair Issac caught on to this model after a lot of fly by night companies began popping up selling these good accounts to people with blemished credit ratings.
This did not sit well with the Fair Isaac company because they viewed it as cheating the system. Their credit scoring model is used by roughly 80% of the credit market and any wrong calculation of risk by lenders that rely on this model brings down the value of their product.
They immediately went to work to do something about it…What they came up with was a block in their system to make sure that even if users tried to add on other users, the effects were no longer reflected on their credit reports and scores.
But on the other hand, when this method is used from one family member to another, a spouse in particular, you can expect the effect to still work the way it used too. Also keep in mind that there are other ways to fix a poor credit rating.
Authorized User Accounts – Still a Viable Method of Credit Repair
Visit do-it-yourself-credit repair or credit repair services to learn more on raising your credit score 200+ points to get approved for car, home and credit card loans.
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