Credit Card Changes
Fair Isaac Corp, the creator of FICO score used by lenders says it is changing the way it calculates the credit scores of consumers and will no longer factor-in authorized users on its accounts.
This is a strategy widely used by credit repair firms around the country. They would attempt to include another user on the credit card account to build up the credit of the second user. So in effect, all you have to find is a credit card holder with 750 score, attach your name to the credit card holder as an authorized user and the score of the second user gets bump by the score of the primary user.
Not anymore. Fair Isaac Corp is dropping the authorized users in the score. Again, this only affects the scoring. And if credit score is your primary objective for the second user, you have to think of another strategy.
This is going to boost or impact the Secured Card industry. Now, to build up credit, more credibility can be obtained by using a Secured Credit Card.
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