hi everyone welcome back to my channel
for anyone needs here my name is Zion
and we talk about all things money so I
made a video not too long ago talking
about how to build your credit score
fast and I listed all of these different
ways that you can do it so if you
haven't checked out that video you
should definitely watch this video all
the way through and then go ahead and
check out that video but another way
that some people can actually increase
their credit scores is by becoming
something called an authorized user and
so if you're interested in learning a
little bit more about how you can boost
your credit score by becoming an
authorized user or if you are
considering about adding an authorized
easier to your current account then go
ahead and hit that like button down
below because it's gonna allow this
video to get out to a lot more people
who are also interested in the same
things that you're interested in and
also hit the subscribe button because
there's gonna be a lot more concept like
this one all right guys let's get to the
video so I'm going to break this video
into two parts I'm first gonna start by
talking about people who are actually
interested in adding an authorized user
to their account and then I'm gonna talk
about people who are interested in
becoming an authorized user I'm gonna
talk a little bit about the pros and the
cons and specific things to consider an
authorized user is someone who actually
gets added to the account of a primary
cardholder in order to kind of adopt the
same sort of credit behaviors of whoever
that primary account holder is and so in
turn by becoming an authorized user if
you choose the right account you can
actually boost your credit score so what
should you consider if you are the
primary account holder and someone is
asking you to become an authorized user
to your account the first thing to
consider is that as the primary account
holder you can either issue your
authorized user a credit card or you
don't have to issue the authorized user
or credit card if you do issue the
authorized user or credit card you
should note that you're legally
responsible for any activity that the
authorized user does achieve
your account or does with the credit
card for example if I'm the primary
account holder and I let my younger
sister become the authorized user to my
account if my younger sister goes out
and spends $10,000 on the shopping spree
she's not legally responsible to pay
that money back I am however if I don't
issue her a card whatsoever she doesn't
have access to the actual account she
just sits on my account as an authorized
user and that's another thing he doesn't
adversely affect your account as the
primary cardholder if the authorized
user a doesn't have access to her credit
card but B has access to the credit card
but uses it very responsibly and so
let's say you're a parent and you want
your child to start learning how to
build a credit what you can do is add
them as an authorized user to your
account now depending on that credit
card the minimum tense the minimum age
tends to be anywhere between 13 and 16
years of age so you could add Matt's an
authorized user and you can issue them a
credit card and you can say hey look
here's your credit card you are able to
spend ten dollars a month every single
month on this credit card but you're
also responsible for paying it back so
whether that's you getting them
allowance and they have to in turn save
ten dollars from their allowance to pay
their credit card bill or if they're 16
years old and they are allowed to start
working they can also take ten dollars
from their paycheck and start paying
that money back in every single year but
the one thing to note is that whatever
they spend it still contributes to your
overall balance your credit balance
every single month so you really want to
pay attention and make sure your
utilization rate is it going over
definitely isn't going over 30% but in
order to build credit but in general
what I like to teach is that you don't
want your utilization rate to even go
over ten nine to ten percent lower than
ten
to 9% is the best range to have the best
credit score lastly I want to mention
two more things if you add someone as an
authorized user and that person has
really bad credit it's not going to
negatively impact your credit score as
the primary cardholder and additionally
you want to make sure to call up your
credit card company and ensure that
they're going to report your credit
activity to the bureau's for the
authorized user so reporting your credit
card activity as if it were the
authorized users credit card activity to
the credit bureaus that's important and
very essential because without that it's
not gonna help the other user actually
increase their credit score if you're
considering becoming an authorized user
there's a few things you should know
you're probably wanting to become an
operator's user because you want to
increase your credit score or maybe your
mom and dad like just said hey I'm
putting you in as an authorized user on
this account but in order to increase
your score as an authorized user you
need to be able to join the right
account what I mean by that is if you
join an account of someone who is very
irresponsible with their credit card has
a poor credit score that's just going to
negatively impact you you want to make
sure someone is really strong in these
categories and you want to find a count
that someone has consistently made
on-time payments to their credit card B
you want to find someone who has a
really low utilization rate I consider a
low utilization rate anything 10% and
under if your Glo confused with what
utilization rate is then I'm actually
going to go ahead and link a video right
here well explain to you guys how your
FICO score is actually made it's
comprised of five different components
thirdly
you want to make sure that someone has a
very diversified credit mix so someone
who has multiple credit accounts there's
revolving credit and there's also
installment revolving credit is
any type of credit where your payments
can be variable such as a credit card
install and cut on the other hand is any
sort of payments where your monthly
repayment is fixed such as a mortgage or
an auto loan so finding someone who has
multiple different types of credit it's
going to be a good person for you to be
an authorized user on one of their
accounts you also want to see the length
of time in which that they have this
account you want to go an account that's
been open for ten years versus an
account that isn't open for a year and
lastly you want to see how often this
person get new credit now that's kind of
tricky and I explained that in this
video right here that you want to
balance applying for different credit
cards every month because that is going
to lead to hard inquiries which in turn
dip your credit score but at the same
time credit bureaus want to see that you
have been getting consistently new lines
of credit be it every year every six
months and also having that diversify
the type of credit lastly I want to say
that becoming an authorized user does
not give you access to change anything
on the account and also becoming an
authorized user it doesn't hold as much
authority as being a cosigner and so the
effect on your credit is going to be
less as an authorized user than it would
be if you were a cosigner alright guys
that is all for the video today I hope
that you guys enjoyed this video if you
did don't forget to give me a big like
down below because once again it really
helps push this video out to more and
more people but also it's a way of
saying thank you the way in which you
can repay me for researching four hours
of you guys is by hitting that like
button and of course by hitting the
subscribe button alright guys that's all
for today until next time bye
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