Fair Isaac Corp. has decided to remove authorized user information when it comes to computing your credit score, likely a response to one recent scheme that had credit worthy users “renting out” their credit history to those without it. If you try to game the system, it’ll adjust itself – it’s as simple as that. The downside is that being put on as an authorized user, such as a child being put as an authorized user on their parent’s credit card, used to be a great way for someone to develop their credit history. Unfortunately, one of those arguably legitimate methods for building your credit has been wiped away because a few (actually many) greedy souls rented out their good names for a few hundred bucks.
If you’re one of those folks paying to improve your credit, unfortunately you’ll have to go back to improving your score the old fashioned way – fiscal discipline. Some would say that there is no difference between paying to get added as an authorized user and getting added because you know someone or are their son/daughter. I suppose from a superficial perspective that is the case, the person who has bad or no credit is trying to boost their score with some help. I think it’s two totally different situations because in one situation there is money changing hands.