Credit Score Changes Ahead

For years, people have added the names of their relatives to their credit cards as a way to help boost their own credit score and establish a credit history. That practice is coming to a halt.

Once the change goes into effect, buyers will no longer get any value out of being an authorized user on someone else's credit card.

Young people trying to establish or re-establish credit may have to depend on secured credit cards or other non-prime credit products to establish credit.

It is quite possible that your credit scores could go down significantly because of this change.

If you are getting married soon and were planning to close credit card accounts and be added as an authorized user on your spouse's credit card, it is a good idea to rethink that move.

If you are married where one spouse does not have any credit cards on which they are the primary cardholder or a joint cardholder, they may need to open one or two in their own name now.

Women, more than men, will be negatively impacted because they are more likely to be added as an authorized user.

Fair Isaac developed the FICO credit-scoring system used by the nation's three credit-scoring agencies. One agency is expected to start using the new system this month, and the two other agencies are expected to start using it by the middle of next year.