The FICO’ 08 fico score and the mysteries they pretend exist. We’ve all heard the propaganda, “authorized user tradelines don’t work anymore”, “I heard that fico 08 isn’t going to score authorized user tradelines”, etc.
The bottom line is this:
“Every generation of the FICO score formula has included authorized user credit card accounts when calculating a person’s score. FICO 8 score continues that policy. This can help people benefit from their shared management of a credit card account. It also helps lenders by providing scores that are based on a full snapshot of the consumer’s credit history.”
As we’ve said before, if FICO actually removed authorized user consideration from their fico score model, they would have violated the Federal Reserve Reg. B. as well as the Equal Opportunity Credit Act. Bankrate agrees:
“Fair Isaac said lenders complained that using FICO 08 would inhibit compliance with Federal Reserve Regulation B, which requires lenders assessing a married person’s credit risk to consider the credit history of accounts shared by the spouses.”
In fact, we aren’t even going to weigh in on the fico ’08 score issue.
Please dismiss opinions and speculation and allow the video above to serve as the authority on the issue. The CEO of FICO, Dr. Mark N. Greene, addresses the FICO ’08 model and specifically states that Authorized User accounts remain as a mechanism for credit improvement.
The truth is that the law requires that authorized users “shall be considered” by lenders, and everyone knows it:
“…any account appearing on your credit report will likely have some impact on your credit scores. Authorized user accounts can help you build credit…” – Experian
“…FICO® Risk Score, Classic v8 also considers Authorized Users tradeline information…” – Equifax
“…[being added is as an authorized user is a ‘surprising’ way to establish better credit]…” – Transunion
“… authorized user tradelines are considered by FICO® Score 9 and all prior versions of the FICO® Score.” – FICO
“…Our analysis suggests that piggybacking credit can materially improve credit scores…” – Finance and Economics Discussion Series Divisions of Research & Statistics and Monetary Affairs Federal Reserve Board, Washington, D.C.
What this does not mean for you?
FICO’s retraction from preventing piggybacking does not mean you will get approved for a loan just because you have a good credit score. Most lenders have underwriting guidelines and requirements other than (i.e., in addition to) credit scores. Also, CPNs and other fraudulent schemes (such as piggybacking with ITINs) remain illegal.
What does this mean for you?
Quite simply, if you were considering the use of authorized user tradelines to increase your fico score, you should not worry about the fico ’08 credit score model and the propaganda that surrounds it. If you need to purchase tradelines to boost your fico score, please contact us by calling 800-431-4741 or by emailing us at firstname.lastname@example.org
We look forward to speaking with you and assisting you with increasing your fico score using this age-old trick that hasn’t changed since it began in 1974.