How To Legally Age Your Credit
The age of your credit history is one of the five key factors influencing your credit score, accounting for up to 15% of the total score. While it may seem like a small percentage, every factor contributes to achieving your optimum score. Different credit scoring models calculate the age of your credit history in various ways. Some models consider the date of the oldest account on your report, while others take the average age of all your accounts. This is why applying for too many new accounts can negatively impact your credit score—new accounts lower the average age of your credit history.
Regardless of the model, it’s clear that having older accounts on your credit report can be beneficial. For example, if you have 10 accounts reporting, and your oldest account shows a 30-day late payment from over a year ago, removing that item could potentially harm your credit score by shortening the age of your credit history. If you’re unsure whether it’s safe to remove such an item, you can request a free credit review from Speedy Credit Repair, and we’ll provide the best guidance for your situation.
For those who are new to credit or don’t have any older accounts reporting, there is a legal and ethical way to add age to your profile: becoming an Authorized User (AU) on someone else’s credit card account. Most major credit card issuers allow the primary cardholder to add a limited number of AUs to their account. This is different from being a joint account holder, which requires all parties to qualify. The benefits of being an AU include:
Inheriting the Account’s Age:
As an AU, you inherit the original date that the account was opened by the primary cardholder. If the account is older than your current oldest account, this can immediately increase the age of your credit history. However, it’s important to note that not all credit issuers report AU status to the credit bureaus.
Improved Credit Utilization:
The credit limit of the account is added to your available credit, which can lower your overall credit utilization ratio—a key factor in credit scoring.
No Hard Inquiry:
Being added as an AU does not trigger a hard inquiry on your credit report, which means there’s no temporary dip in your credit score.
No Access Required:
The primary cardholder does not need to give you physical access to the card or allow you to use the account. This provides the cardholder with peace of mind, knowing their credit won’t be affected by your actions.
No Liability:
As an AU, you are not legally responsible for any debt incurred on the account. The primary cardholder remains fully liable.
While becoming an AU can be a great way to age your credit, we strongly advise against paying for the use of someone else’s credit account. Some companies offer to "rent" AU status (Also known as Tradeline Sales), but this is not the intended purpose of the privilege and can be risky for both parties involved. We recommend that this arrangement only occur between trusted family members or close acquaintances.
If you’re considering becoming an AU and want to know which accounts might benefit you the most, request a free credit review from Speedy Credit Repair. We’ll review the dates and account types currently reporting on your profile to help you make the best decision. (Please note that we do not review paper copies of credit reports.)
