Does USAA Report Authorized Users to Credit Bureau?
In today’s digital age, credit scores play a crucial role in determining one’s financial credibility. Many individuals wonder whether USAA, a well-known financial services provider, reports authorized users to credit bureaus. This article aims to shed light on this topic and provide a comprehensive understanding of how USAA handles authorized user reporting.
Understanding Authorized Users
Before diving into the specifics of USAA’s reporting practices, it’s essential to understand what an authorized user is. An authorized user is someone who has been granted permission by the primary cardholder to use their credit card. This person does not have legal ownership of the card but can make purchases and accumulate credit history.
USAA’s Reporting Policy
USAA has a specific policy regarding the reporting of authorized users to credit bureaus. According to this policy, USAA reports authorized users to credit bureaus, but only if the authorized user has an active account and meets certain criteria. These criteria include:
1. The authorized user must have an active account and have made at least one purchase or payment within the past 12 months.
2. The authorized user must have a positive payment history, with no late payments or delinquencies.
3. The authorized user must have a credit limit assigned to their account.
Impact on Credit Scores
Reporting authorized users to credit bureaus can have a positive impact on the authorized user’s credit score. As long as the authorized user maintains a good payment history and meets the criteria mentioned above, their credit score can benefit from the positive credit activity associated with the primary cardholder’s account.
However, it’s important to note that the authorized user’s credit score will not be affected by the primary cardholder’s credit history. The authorized user’s credit score will only reflect their own credit activity and payment history.
Limitations and Considerations
While USAA reports authorized users to credit bureaus, there are some limitations and considerations to keep in mind:
1. If the authorized user’s account is closed or becomes inactive, USAA may stop reporting the account to credit bureaus.
2. The authorized user’s credit score will only benefit from the primary cardholder’s account if the primary cardholder maintains a good payment history and credit utilization.
3. It’s crucial for the authorized user to keep track of their credit activity and ensure they are meeting the criteria set by USAA to maintain a positive credit score.
Conclusion
In conclusion, USAA does report authorized users to credit bureaus, provided that the authorized user meets certain criteria. This reporting can have a positive impact on the authorized user’s credit score, but it’s essential to understand the limitations and maintain a good payment history. By being aware of these factors, individuals can make informed decisions regarding authorized user accounts and their impact on their creditworthiness.
