ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Personal Finance»
  • Understanding Finance

No More Score Boost For Authorized Users On Credit Reports

Updated on January 28, 2010
http://RepairCreditTrauma.com
http://RepairCreditTrauma.com

No More Benefit For "Authorized User" On Credit Reports....

 

When someone finds a loophole in the IRS rules, you're going to see a bunch of folks exploiting it until the IRS figures it out and takes the loophole away from you. Ahh.....it was nice while it lasted huh? The same thing has happened with "authorized users" in regards to increasing your credit score by "piggy-backing" off of another's positive account rating.

The following is the definition of an Authorized User: "Person permitted by a credit cardholder to charge goods and services on the cardholder's account, but who is not responsible for repayment of the debt. The account displays on the credit reports of the cardholder as well as the authorized user."

Originally, the purpose of an "authorized user" was to allow a family member or close relative to be added onto your account and that person was allowed to make charges against that account. This was especially helpful for young adults trying to establish credit for the first time. A parent would add their teenager onto an existing account of theirs and typically, this would be the first type of charge account a young person would have. With the parent's guidance, they could teach their teenager the advantages and disadvantages of using credit, along with teaching them the responsibility that comes along with it. If they managed this type of account well, then it would reflect as such, in establishing a credit history and a good credit score to go along with it. This practice enables a person to qualify for things that they wouldn't, under normal circumstances, qualify for, which constitutes a form of fraud.

Of course, scammers found this loophole in the credit scoring system and decided to abuse it for monetary gain. In the past few years, these scammers would solicit people who needed to establish or re-establish credit and they would be offered the opportunity to piggy-back off of someone else's positive account, (that they didn't know) for a fee. Once they were set up as an authorized user on this account, that person's account and the credit history that went along with it, would automatically reflect on the authorized user's credit report and would therefore generate a good credit score for them.

Unfortunately, because of this abuse, Authorized User accounts are no longer a contributing factor in credit scoring, so they will no longer benefit the authorized user in that respect. These types of accounts are still available thru creditors, and they will still reflect on the owner's credit report and the authorized user's credit report, which will show the account's history, but the greatest benefit of the account reflecting in the credit scores is now history.

Visit: http://www.RepairCreditTrauma.com/

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://hubpages.com/privacy-policy#gdpr"

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)