The FICO formula change has everyone with an authorized user account on
their credit report asking questions. Here’s a great example from our
reader Brianna:
I read your article What does the FICO score change mean to you? and I have a question regarding item #6: "If you are married and do not have any credit cards where you are the
primary cardholder or a joint cardholder, you may want to open one or
two in your name."
I am married and I am the primary cardholder for our credit cards. I am
almost positive (I need to call the credit card companies to make sure)
that I added my husband as a "joint" cardholder. Just to clarify – as
long as he is on the credit cards as a "joint" cardholder then it will
still affect his FICO score, right? But if he were only an "authorized"
card user then it would NO LONGER affect his FICO score…? Should he
(and/or I) still get our own credit cards with our own names soley on
them or are we OK with him being a joint cardholder on my cards?
Brianna is smart to think about this change now, rather than when the formula change takes effect this fall. Our credit scoring expert, and former FICO insider, John Ulzheimer has the answers:
As long as her husband is a joint cardholder (and the account is
reported as such on his credit reports) then he’s fine. This change
won’t impact joint accounts, just accounts that are identified as
"authorized user" accounts.
Brianna is correct on the second point as well…if the account is
reported on his credit files as him being the authorized user then this
change WILL impact him. That account will eventually stop counting in
his scores and could lower them.
Double check to see how he’s listed. Check with the credit card
companies and then have him double check how they are listed on his
credit report. He can get his credit reports for free at AnnualCreditReport.com. If he’s listed as an authorized user then you may want to consider converting him to a joint holder.
Do you have a question about how the FICO credit scoring formula change will impact your credit? Contact us!
{ 2 comments… add a comment }
If you close old creit cards that have been used for years will this effort improve your credit score?
Closing old credit cards will never help improve your credit score. It’s best to leave them open.