Authorized User versus Secondary User

[idonthaveaname]

Hi,

I recently had my relative add me on 2 accounts as an authorized user. ( All she had to do was give my name with no social and it showed up on credit report. This was pretty strange considering there has to be more than one person in the us with my name). I read on a couple of the credit bureaus that this helps show credit history, but doesn't factor into your FICO score. So what exactly is the benefit.

If I can become a secondary user is this better?

[Lian]

An Authorized User (AU) is a party who is not an actual account holder, and thus not responsible for any debt accrued on the account. Once added as an AU, the entire account is reflected in the AUs credit file, and most certainly DOES count in FICO scoring. An AU can be deleted from that status at any time.

If you become a joint account-holder, you become jointly responsible for the debt, and cant have that status rescinded just upon request.

[idonthaveaname]

What about the article that says in 2007 it was dropped from fico reporting?

I can't post the link here yet

[Lian]

That is old and incorrect information.

FICO announced back in 2007 a proposal to eliminate the scoring of AU accounts, but due to much protest, they backed away from it.

They did state the future intention to limit scoring to only AU accounts based on an immediate family member, such as a parent, brother, sister, or spouse. To my knowledge, they did not impose any such restrictions.

AU accounts have been a constant controversy. They do violate one of the basic premises of credit scoring, that being the evaluation of credit risk based on an individual's personal credit history. Years ago, AU accounts were regularly sold on the internet to total strangers.
There is no blanket exclusion of AUs from credit scoring.

[idonthaveaname]

Thank you for your great answer. So there really is no point in being a secondary user then unless I want to be liable? How were they able to add this info to my credit report buy just providing my name and not my social or address? There has to be more than one person in america with my name