Video 17 – Authorized User Accounts

Transcription of Authorized User Accounts

Fabulous shortcut for building credit. If they have Mother, Father, Brother, Sister, close friend that knows them and trusts them. If they become an authorized user on a revolving account, they’ve got a Visa account that’s good. They get the entire history of that account on their credit report, which is important and we’ll discuss a little bit later why that is important as far as history and how they structure that. But, yeah, that’s a great shortcut and we use that very frequently.

Let’s say you have no credit at all, OK? You’ve have a blank credit report. You need some credit, you come to me. I say gee, I’ve got a $10,000 Visa that I hardly use here, I’ve had this thing for 10 years, ok. Great credit. I’m going to put you as an authorized user on my Visa. I don’t have to give you a card. You never have to use the credit line. You never have to see the statement. But my credit history from that credit card is going to go on your credit report, so you’ve now got a $10,000 credit card on there with no late payments that’s been there for 10 years.

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