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Are you an authorized user on someone’s credit card? 👀 Take notes!!

👉🏾 If the card issuer reports authorized users to the credit bureaus, then any activity on the card you’re piggybacking off of can impact your credit - good, bad, indifferent.

Becoming an authorized user is a great temporary credit building tool, if you are piggybacking the right card with consistently positive activity.

‼️Once you’re attached to the card, high utilization, late payments or the closing of the card ALL report to your credit, too! Which doesn’t help your credit at all! 😩

If you’re thinking to become an AU on someone’s account, ask them these questions first:

1. How long has their card been open? (The older the credit card, the better)

2. Do they currently have 30% utilization or less on the card? Do they MAINTAIN low utilization normally?

3. Do they actively use the card? (You don’t want their card closed due to inactivity while you’re attached as an AU)

👉🏾I Hope this information helps!

Need more credit help to improve your scores and qualify for better interest rates? Schedule your Credit Clarity Call via www.godeluxefinancial.com

😨 Most people don’t know they have a Chexsystems report until they are denied access by a bank or credit union.

Having positive banking history keeps you out of Chexsystems! 😉

Chexsystems is a consumer reporting agency for banks & credit unions, just like credit bureaus provide consumer reporting for credit.

☝🏾However, the significant difference is that you’re only in Chexsystems if you’ve mishandled your checking or savings account in some way OR if misinformation is reported about you by the bank.

In other words: You don’t want to have a Chexsystems report. This is not a good thing.

Each bank has different reasons for reporting customers to Chexsystems, but the most common reasons are:

1️⃣ Bounced checks
2️⃣ Overdrafts
3️⃣ Unpaid bank fees
4️⃣ Excessively keeping a negative balance
5️⃣ A bank closed your account for misuse or unpaid fees

Please note that clerical errors happen often so you want to pull your Chexsystems report if you have one to review for any errors that can be disputed.

Here’s how you can find out if you’re in Chexsystems:

Www.Chexsystems.com
1-800-428-9623

If you have a Chexsystems report with derogatory marks from a bank/credit union, those derogatory marks will stay on the report for 5 years, which can stop you from being able to open a new checking or savings account.

If you are someone in need of second-chance banking due to a derogatory Chexsystems report, here are some banking options that don’t report to or check Chexsystems as of April 2022:

1️⃣ Chime
2️⃣ Navy Federal Credit Union
3️⃣ SoFi Checking and Savings
4️⃣ Acorns Spend Checking Account

We hope this helps! Share with a friend! 😉

www.godeluxefinancial.com