Credit score gurus.

[Rumline]

What Monkey said. By keeping the car payment your friend would literally be paying every month for the privilege of increasing his score. Which is something he could get for free w/ a revolving account that he uses (even just a little) and pays in full each month.

I'll differ in saying that a secured credit card (where you put down cash equal to the credit limit, usually only a couple hundred $, that the bank keeps until your score goes up) would be better Edit: in the long term /edit than being added as an authorized user to another person's card.

[ChunkyMonkey]

I'll differ in saying that a secured credit card (where you put down cash equal to the credit limit, usually only a couple hundred $, that the bank keeps until your score goes up) would be better Edit: in the long term /edit than being added as an authorized user to another person's card.

I usually advise against opening a secured credit card for credit score purposes - as new revolving trade line will dip your score further. Of course, you will build your score as on time payments being recorded. This is the slower safer way.

In the case of authorized line of credit, the original credit card holder's history will carry over onto your credit history. For example, if I put you as an authorized user on a 10 year old $40K limit AMEX card with 40k history balance with zero dollars current balance - The whole detail will transplant onto your credit history. Typically you'll see a huge jump in credit score in a matter of couple weeks.

[thedave1164]

I usually advise against opening a secured credit card for credit score purposes - as new revolving trade line will dip your score further. Of course, you will build your score as on time payments being recorded. This is the slower safer way.

In the case of authorized line of credit, the original credit card holder's history will carry over onto your credit history. For example, if I put you as an authorized user on a 10 year old $40K limit AMEX card with 40k history balance with zero dollars current balance - The whole detail will transplant onto your credit history. Typically you'll see a huge jump in credit score in a matter of couple weeks.

WOW

[Rumline]

In the case of authorized line of credit, the original credit card holder's history will carry over onto your credit history. For example, if I put you as an authorized user on a 10 year old $40K limit AMEX card with 40k history balance with zero dollars current balance - The whole detail will transplant onto your credit history. Typically you'll see a huge jump in credit score in a matter of couple weeks.

Yes, but...lenders will see that account as being authorized user rather than your own account; they know you're not responsible for making the payments. There are many different FICO score types and versions, with different algorithms that drive the score. They will weigh the benefit of being an authorized user differently. If you're applying for a mortgage, for example, that authorized user account won't help you at all. Not that OP's friend is buying a house anytime soon; I'm just saying in general re: authorized users.

Like you said it's the best quick fix method but it's not a silver bullet.

[ChunkyMonkey]

Yes, but...lenders will see that account as being authorized user rather than your own account; they know you're not responsible for making the payments. There are many different FICO score types and versions, with different algorithms that drive the score. They will weigh the benefit of being an authorized user differently. If you're applying for a mortgage, for example, that authorized user account won't help you at all. Not that OP's friend is buying a house anytime soon; I'm just saying in general re: authorized users.

Like you said it's the best quick fix method but it's not a silver bullet.

Of course not, it's strictly to improve score as mentioned. I underwrite them all the time, and it's still one of best loophole to get over 'minimum score' overlay on loans.