We continue to get great questions from our readers about the recent FICO announcement about changing their credit scoring formula. You can click here to learn more about this change, what caused it and how it applies to you.
I am added to my girlfriend’s credit card. How does this impact my credit score and what will happen when the FICO score changes? What is the difference between joint
account holder and authorized user?
Good question! Our credit score guru and FICO insider, John Ulzheimer, has the answers:
A joint account is when you and someone else (the joint account holder) are both liable for the payments. And, it also means that the account will show up on both of your credit reports and your scores will take them into account. There’s also a good chance that both of your credit reports were pulled and reviewed when the account was opened.
An authorized user is someone who has the ability to use the credit card that belongs to someone else. You do not have any financial liability and the account MAY be reported on your credit files. As of now, the authorized user account will count in your score but that’s going to change when FICO launches their new formula this fall. If you had been getting credit score "points" for the authorized account, your credit score could drop when this changes.
Do you have a question about FICO’s decision to stop counting authorized user accounts? Send us an email!
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