Why Banks Are Closing Quickly - The Unpleasant Truth About Authorized Users' Trade Rights
by Anand Bailey
Nov 23, 2022
Table of Contents
- Why is this important?
- Investigating the credit bureaus
- What did the Subcommittee find?
- What do the credit bureaus say?
What makes trade lines so valuable? Time is what makes trade lines so worthwhile. Since the percentage of on-time payments makes up a significant portion of credit scores, the longer the credit account has been open, the more on-time payments it will have in its credit history.
A borrower's ability to get more credit from financial institutions and have more Financial Business Opportunities is facilitated by adding more payments to a Business Credit Profile, which raises the score and creditworthiness.
Funding a new business startup with a low credit score can take time and effort. The two primary criteria are the credit limit and the trade line's age. Therefore, the duration will have a considerably more extensive effect than even, say, a limit.
Therefore, as time passes, the trade line's price will rise. We're going to discuss the top banks for authorized users.
Even though I adore credit unions, the best banks for trade lines will be the large financial institutions.
- Discover does submit credit information to all three Credit Reporting Agencies in the US and lets you add up to five authorized users at once. And given that Discover will report during the statement cycle, it's the best. Therefore, you typically have to wait until the following statement to update the Credit Reporting Agencies when someone is enrolled as an authorized user. But with Discover, certain authorized users will be reported within the billing cycle. Therefore, you are not required to wait for 30 days. The authorized User may report within two weeks, according to situations I've witnessed.
- Another excellent one is TD Bank. TD Bank reports that the information matches based on name, date of birth, and address—not always social security number. Although TD Bank has undergone some recent adjustments, I learned this fact about them quite early on: you can add up to 25 authorized users to your credit card account with them.
- We have the Navy Federal Credit Union as well. Navy Federal now only permits four approved users to be active at once. The one drawback of Navy Federal is that you can't add or remove approved users. Let's imagine, for example, that you were using all four of your authorized users. If that happened, you would only be able to add another authorized user after Navy Federal mandates that you wait a specific amount before adding another.
- Chase is beneficial for authorized users as well. Chase will close your credit card account if they notice that you're adding many authorized users, so you must be careful with them now. And now, with authorized users, here's another thing to watch out for since many banks are starting to tighten down on this. Currently, authorized users are meant to be people using the account, but let's say there are several authorized users on a credit card account. Still, there is no activity, and they notice that you're just, you know, switching them in and out, the chase would close your account. So, that's something to keep in mind.
- American Express was a fantastic company, but it's now more like around 2018, they stopped making backdated history, which was four years ago. You do not receive that history that is outdated. Therefore, adding or adding someone as an authorized user on an American Express credit card will be reported to your credit bureau as a new account. Adding the Available credit to your Credit Report is of more VaTo To American Express Authorized Users.
Currently, Bank of America is excellent, as are Barclays, Citi, HSBC, US Bank, and S A A. And now, some traps to watch out for when working with authorized users.
Again, we're not prescribing anything or telling you not to utilize authorized users, but there are a few things you should be aware of.
- You must be careful to quickly add only a few authorized users while adding people to your credit card account as approved users. Many of these Tradeline businesses claim that they will report for 30 or 60 days, but if the credit card company notices that a lot is authorized, they may cancel your account if they see users coming in and going out frequently.
- Adding individuals whose identities or social security numbers have been stolen. This is currently one of the simplest ways to have your account closed.
- Sending AAU Cards to the authorized User physically. Now, unless this person is close to you, a family member, or your child, you probably don't want to grant them access to your account; instead, you may want to add this person to help that person's credit score.
- We discussed the inactive activity on an AAU account. Now, credit card issuers typically anticipate that authorized users would use the card to which they were added since, once again, the credit card can collect more transaction fees when numerous card users are present. Therefore, they occasionally may shut off the authorized User if they notice that, you know, there is an inactive activity or that there is absolutely no activity on any of the buses.
- Having an excessive number of authorized users with scattered addresses is a significant warning sign that you're selling authorized users. For example, if you have several people on your credit card account, but their addresses are spread across the nation, that's a significant warning sign that you're selling authorized users.
- Adding authorized users to a bank card in cases where the original User had defaulted. Therefore, if the person who was added was previously blacklisted, American Express will refuse to accept an authorized user. So, that's something else to think about
- Including authorized users who have engaged in illegal conduct. Now, one of the things you want to avoid doing is adding people who might have any outstanding arrests or pending cases, or any criminal activity. Why? Because if someone is wanted by the police or has an arrest warrant out for them, many of these bounty hunters or law enforcement agencies will pull the person's credit report to see what addresses are connected to that person
- Using dubious third-party tradeline suppliers. This is something I advise avoiding in general. Avoid starting a business where you sell authorized users because doing so will put your accounts at risk, and you won't know who is getting added to them. Once more, these may be criminals, individuals utilizing CPNs, individuals using stolen identities, etc.
Anyway, I hope you found this helpful information. Please post any questions below. Take it easy, and until then, we'll talk to you shortly.