When it comes to buying a home, your credit score can make all the difference between a smooth approval and a hard stop. One powerful – yet often overlooked – strategy to improve your credit profile is becoming an authorized user on someone else’s established credit account. At Northeast Financial, we’ve seen firsthand how this simple move can help open the door to homeownership for many borrowers.
What Is an Authorized User Account?
An authorized user is someone who is added to another person’s credit card account. While the primary account holder remains responsible for payments, the account history – including payment behavior, age of the account, and credit utilization – typically gets reported to the authorized user’s credit report.
That means you can benefit from the account’s positive history without taking on the debt.
Why It Works: The Power of a Strong Tradeline
Credit scoring models place a high value on the age of your accounts, your payment history, and how much of your available credit you’re using (known as credit utilization). When you’re added as an authorized user to a seasoned tradeline – a revolving credit card that’s been open for 4 to 5 years or more, has a perfect payment history, and is using less than 10% of its available limit – it can have a significant positive effect on your score.
This can be especially valuable for:
First-time homebuyers with thin or limited credit files
Individuals rebuilding their credit after financial hardship
Borrowers just shy of qualifying for better mortgage terms
We’ve seen clients jump 20, 40, even 60 points or more just by strategically using authorized user accounts.
A Mortgage Approval Game-Changer
Mortgage lenders use your credit score to determine not only your approval odds but also your interest rate and available loan programs. Just a 20-point boost could shift you into a lower risk category – potentially saving you thousands over the life of your loan.
In some cases, adding an authorized user tradeline has been the final piece that helped a borrower secure their mortgage approval.
Be Strategic – Not All Accounts Help
It’s important to be selective. Getting added to a card that carries a high balance or has missed payments can actually hurt your score. That’s why we recommend working with one of our experienced loan officers before taking action.
We’ll guide you on:
Which types of accounts to look for
How many points you may need to qualify
How quickly changes might reflect in your score
Other credit strategies that complement this approach
Take the Next Step
If you’re thinking about buying a home but your credit score is holding you back, let’s change that. Schedule a free consultation with a Northeast Financial loan officer today, and learn how the right credit moves – like becoming an authorized user – can put you back on the path to homeownership.
📞 Call us or click below to get started.
🏡 Your future home is closer than you think.
