Get that bank account NOW

katwkittens
Tue, 07 Aug 2007 15:42:07 +0000

As of September 1 the FICO scoring model used to obtain credit scores will be eliminating authorized user’s accounts from the score. So anyone relying on an authorized user account to build a score will no longer be able to.

And without a FICO score the only way to obtain a credit card “individually” will be with a secured card or establishing some credit history as a “joint” user rather than as an authorized user.

The first credit agency putting this into effect in 3 weeks will be Experian. After that in the following months will be Equifax and Transunion. This will of course cause a ripple effect in a merged tri-agency file pull. Used for employment, apartments, mortgages and other banking needs.

For example Bank of America does a hard credit pull for opening a checking account. And they typically pull Experian. So this may prove to be problematic for those wanting to open their own checking, or credit with no history previously.

My kiddos have set up all their checking and credit cards knowing this was in the works.

Kat