Adding authorized user to credit card is perfectly legitimate way to improve a person’s credit score. There are two ways by which a person can utilize this option to improve credit. Here’s all you need to know about it.
Becoming an Authorized User on Credit Cards – how it helps?
Payment history of credit cards is a major factor that lowers or increases a person’s credit score. If your credit score is low then you can become an authorized user on another person’s credit card to improve it.
Delayed payments, missed payments, high credit utilization ratio etc. are factors that lower a person’s credit score. So, if you use a credit card with excellent payment history and low credit utilization rate then you can help your credit score too. The good history of the credit card will begin to appear on your credit reports. It will significantly improve your credit in the coming weeks.
A card with no delayed or missed payments is considered gold in terms of credit scores. If the credit utilization ratio on this is low then the card is even better. Credit utilization ratio is the credit being used by the account holder divided by the total credit available in the card. It should be low to be effective in terms of getting you a low credit score.
The card issuer companies report the activities on a card to the credit bureaus. The information is then used to calculate your credit score.
Becoming an Authorized User on Credit Cards – how to do it?
There are two ways you can become an authorized user on a credit card.
Option 1 –
First, you can choose a family member who has excellent credit card payment history. Adding authorized user to credit card can be done easily by putting a request to the card issuer company. It is a simple process. You can call the customer service of the card issuer’s company to know more about the process and put in your request.
The problem with choosing a family member or friend as the primary account holder is that there is always a risk of the person defaulting on the payment or delaying it. If they falter with payments then it will lower your credit score. So, the whole purpose of you becoming an authorized user on their account will be rendered useless. So, choose an account very carefully.
It may not be possible for you to get all the details about the account. So, there is always a risk of using this option. It is especially risky if your credit score is too low and you cannot hurt it any more by using a bad account.
Option 2 –
The other option is to lease a credit card from credit repair company Miami. There are credit repair firms that specialize in rebuilding credit cards. They arrange the cards by viable means and from different issuers. Each card comes with excellent payment history. There won’t be any problem with the cards that you choose from these companies.
It is important to choose a reputed company with proper information available on their website. They should mention their contact numbers and addresses too on their website. The credit cards (also known as tradelines) must be listed on the website with full information. Presence of such information reveals that the company is reputed and legitimate.
Each card must be listed with information such as issuer or bank’s name, card ID, card limit, reporting date etc. You should be able to choose the cards as per your requirement. Perhaps you only wish to build your credit or build your limit or history. Perhaps you want history and limit both to increase your chance of building credit greatly. Whatever your requirement, you should be able to choose the credit card accordingly. It should also be within your budget. The information about the reporting date (when the information is reported to the credit bureaus) is vital and can help you choose a card accordingly. You can choose the reporting cycle as per your need.
Reputed companies can help you out by assisting you in the buying process.