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hey credit Warriors credit shifu here and welcome back to the most exciting credit card channel on YouTube if you're new why not consider subscribing we upload credit card tips and tricks how to improve your credit almost every day but let's get down to the topic of this video and that is which authorized user card and is going to help you build your credit the best now in this video we're not talking about which authorised user card is going to give you the best benefits like airport lounge access and all that that would be nicer than it will probably cover that in another video but we're talking about building credit here which authorised user card is going to help you build your credit the best so first of all if you don't know what an authorised user card is it's basically if you have a credit card it's the accounts in your name and you ask for an additional additional card that has someone else's name on it but it's still linked to your account you give that card to that person maybe a family member or whatever and basically they spend money on your account the money you know they spend money on your account so they're spending your money they're not legally obliged to pay it back it's your responsibility to pay it back but basically they benefit from it because that account shows up on their credit score and as long as the accounts in good standing with on-time payments and everything all that history will show up on their credit score too so it can help them build their credit who would this be useful for well parents can do it for their kids growing up so the time they by the time they are 18 they already have a bit of a credit history and going to help them in applying for credit cards and stuff like that if you're a new immigrant to the country you know maybe a colleague or a friend would be willing to do that for you if you're a little bit if you feel it's a bit awkward asking someone here could ever be an authorized user on your account you know can I mean like spend money on your account you can say them they don't actually have to give you the card that's also another thing about it you know they can chop it up or they can put in and draw a home you do not have to spend on that card but the on-time payments and the credit history will still show up on your credit report so don't feel awkward about it if you're just asking a friend you know you can reassure them by saying I'm not going to actually have the card you can keep it let's now look at what criteria this account needs to fulfill and there's kind of two sections there's the behavior of the cardholder the primary cardholder and then there's also the attributes of the actual card itself first we'll look at the situation where the status of the account of the primary cardholder so the account should have been opened for at least two years okay because you want a longer credit history obviously if you are very new to credit you haven't even got a credit card of yourself the only way is that you do want to make sure that the account has credit history to get the maximum benefit out of it okay in addition to that the person should have on-time payments okay they shouldn't have missed payments in the last two years or even a longer period of time if it's been open longer okay the account should basically be in good standing like that with on-time payments no miss payments and their credit utilization shouldn't be too high we always recommend credit utilization ideally shouldn't go over 30% if they can be under 10% it's even better that's gonna have the best effect on your credit score so those are factors to just ask the person you know if you're becoming an authorized user of their account you can say them hey you know hey Dad have you missed payments on your credit card account that you're adding me to maybe I don't want to be an authorized user huh you know or if it's your colleague you know just just ask them a few polite questions about it just make sure that they have on-time payments and all that stuff so we'll now look at the attributes of the cards themselves and there are two things to consider the first thing is to make sure that this card is going to report the full credit history on that card to the credit unions on your credit report the authorized users credit report now notably American Express does not report the full history it just reports from the time that you became an authorized user on your credit reports so this might not matter to you so much if you're brand-new but I read a story on a my FICO forum this morning of a guy who he had been doing credit repair rebuilding his credit he already had a couple of basic you know credit builder credit cards and his wife put him as an authorized user on an American Express card thinking that it would help you know build his credit faster actually because Amex doesn't report the full credit history it looked like a brand new account had been opened and it shortened the average age of accounts on his credit score and it decreased his credit score by 20 points and this guy was complaining that you know he could no longer get the best rates on the mortgage he was applying for because he had this taken this 20 point hit and his gonna cost him an extra $2,500 a year on his mortgage so you really he really learned the hard way on that poor guy but anyway so that's just something to watch out for notably Amex doesn't report the full credit history most other major card issuers do you might want to look on some online forums like my FICO just to get the most up-to-date information on that secondly for the maximum impact on your credit score you also want to make sure that this authorized user card is going to report to all three of the credit bureaus now primary cards of pretty much all major banks in the US will report to all three okay maybe there's a few that don't but you know the major banks should report to all three like chase Americans versus Sarah but for authorized user cards it is not always the case and I can just demonstrate this on my credit report if we open up Credit Karma here you can see on this one TransUnion I believe there are three chase cards listed okay now one of those cards ayman is an authorized user' card on my wife's account if we go over to Equifax you can see there are only two chase card listed under this and that's because the authorized user' card must not have been reported so Chase is reporting this authorized user' card to only two or perhaps even one of the credit bureaus now stuff like this changes all the time so you know to get the most up-to-date information you may have to go online luckily there is an easy resource so the author of this book your score antony davenport and this is a great book by the way i'll probably put the amazon link to it in the in the comment in the description if anyone's interested in reading it but he is a you know credit insider he used to be a mortgage originator and now he runs a credit repair business he on his website he i'm gonna put that on the screen now Antony M Davenport comm /e or score he has a little resource that has some information that he updates if there are any changes in the industry and he tells you which cards report to all three bureaus at the moment those cards are Capital One Discover Bank of America and Wells Fargo and he does update this if there are any changes in the industry so this might be a useful thing just to look at if you're thinking of getting an or raises a card and obviously if the one that you're thinking of getting or thinking of giving to someone is not on there you may want to just phone up the card issuer and you can ask those two questions does it report the full credit history on the authorized users credit report and does it report to all three bureaus for the authorized user cut as well those two questions are most important so that is how to pick a good authorized user card those four we just looked at are currently ones that Mr Davenport the author of this book recommends and lastly I'd like to talk to you guys about a few things so first of all we have credit sure food wallets and the new RFID blocking cases coming this evening so they probably will go on sale tonight these are the small minimalist wallets I unfortunately don't have the traveler wallets yet they're coming in about two weeks we've got several hundred of them on order okay because we just had such a backlog and so many people have been sending me questions like hey when in a while it's coming in the walls some people it's like they've given up they just send me one word wallets question mark yeah I know guys I'm frustrated too you know I really you know I know you want to get them one guy even said that he'd got one for Christmas and he really liked it and he'd lost it and he wants to buy another one like yeah sorry man they're coming soon but anyway they should be going on sale tonight if not tonight it'll be tomorrow but hopefully tonight and I will put a post online when they do you can also join our Facebook page facebook.com forward slash the creditor who and we'll definitely be posting on there when they go and sale secondly I also want to ask you guys about some future products okay because you know we've been selling wallets I've also kind of kicked around the idea of doing a paid credit building course credit building and credit repair course actually this video and this is what I'm talking about because this video was originally kind of knowledge knowledge knowledge that I had sort of prepared for that course and I've been doing a lot of research I've read loads and loads of books like that this is one of the ones I've read and I'm just wondering if people want that you know whether people would pay say 20 or 30 bucks this isn't gonna be Tai Lopez prices alright thousand bucks for a course that lasts like an hour and a half no way you know you know it would be affordable and it would be very targeted and sort of progressive and I'm just wondering if people want that you know if there's not sufficient interest and people think that there's already so much information available out there online for free then I'm not gonna do it there's no there's not really any point you know I'll just consider you know trying out new products like new wallets etc so that's another thing I want to ask people like if would you be interested in like a credit shift from t-shirt or if we were to do a sort of luxury version of the wallet because our wallets you know they are nice the leather is imported from Italy and stuff like that but it's an affordable price it's 28 bucks or 18 bucks it's not like what you would class as a luxury wallet if we were to do a luxury product maybe a hundred and fifty dollars would people be interested in so yeah leave your comments below would you be interested in a credit course would you be interested in a t-shirt or would you be interested in a more luxury products reward or some other kind of product and so just leave your ideas below we'd love to hear them I'm always trying to do what's best for defense you know like make a product that people actually want not just a product that is designed to take the money out of your wallet and put it into mine so you know the criteria has to have has good quality has to have a reasonable price and people actually have to want it okay guys thank you so much I'm gonna shut up now and stop talking and as always please subscribe if you're new and we will see you probably tomorrow with more credit card tips and tricks [Music] you