Is It Legal To Become An Authorized User?

Over time, bad credit can become a huge problem. Debts tend to accumulate and, with bad credit, it is hard to get certain jobs, decent loan offers and low interest rates on mortgage or insurance. It is a negative cycle that can only be overcome through a combination of economic discipline, good financial advise and credit education. But Art Gulle creator of "The Credit Journey" Credit Repair Course and author of "5 Ways To Buy The Right Foreclosure With Wrong Credit" says that such a difficult path cannot exist without some shortcuts. Holes in the legal and financial system have permitted the rise of other alternative methods to curate or recover a bad credit score. These methods are legal shortcuts that can help pave the path to economical stability and growth. However, there is one big problem with them. Legal shortcuts are surrounded by law, but not regulated by it, and some risks are involved. This is why many credit experts are constantly reminding people of the potential problems that could arise from employing such methods. One of the most talked about and used in many cases is improving credit scores by signing on as an Authorized User on another persons credit card that holds good reporting status.

To become an authorized user on someone’s credit card, the owner of the card must start the approval process (which can be a simple phone call) before the credit company would authorize an additional card. Being an authorized user usually comes with all the advantages and none of the disadvantages. A credit score is instantaneously risen when someone who has a card with a good reporting history  authorizes another person to attach to their account. If the owner of the cards keeps an excellent paying status, then the authorized user continues to experience the same advantage. This method can keep going until the authorized user has a credit score high enough to start getting better jobs and loans, and lower rates and interest.  In addition, approving an authorized user with bad credit does not affect the original user’s credit. Unfortunately, this method has somewhat of a dark side. If you do not get this card from the authorized user immediately, they could use the card anytime they desire and will have no responsibility for the payments of the card. This makes an authorized user an extremely risky relationships and full caution is recommended.

Being an authorized user is considered to be a morally ambiguous method to boost someone’s credit score, but it is legally accessible, and it has rescued many people from difficult and seemingly unsolvable economic situations.

Of course, all this sounds great put on paper, but the credit system is still complex and can be hard to understand completely. This is why many people have dedicated their life to help potential buyers to better their credit scores and gain access to all the financial benefits. Such is the case of Art Gulle, author of the celebrated book “Act Like a Homeowner, Think Like an Investor.” Art Gulle has had his share of experiences with credit. Living through up and downs while facing the many challenges that come with managing personal credit, Gulle learned all the inside methods to managing personal credit and has used this knowledge to help many people over the past 14 years. His latest project is hosting “The Credit Journey” Credit Repair Class, where you can learn about a wide range of useful tools and techniques to help repair your credit report. You can contact him by visiting www.TheCreditJourney.com