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  1. #1

    Default Does Being an Authorized User of a Credit Card Affect Your Credit Score

    My question involves collection proceedings in the State of: Wisconsin

    Not sure if this forum is the right place for this type of question, but perhaps someone with more knowledge of credit scores can give me advice.

    I am currently an Authorized User on a credit card, and had no idea I still was on the card. My parents added me as the authorized user back when I went to school the first time to help with emergencies and fuel, and for the last 15 years I was unaware I was still an authorized user and assumed they just took me off when I got a job. I had an unrelated identity theft issue recently that caused me to get more proactive with my credit records, and that's when I found out.

    My question is whether or not having myself removed from this card at this time is a good idea or if I should wait.

    Some additional information: I have never had a car loan or mortgage (pay in full for cars and rent). I had a student loan debt of less than $10K, but only carried the loan for a little while before inheriting money and paying in full before the grace period expired. My only credit is from credit cards, and my total max credit from my own personal cards is almost identical to the credit limit on the card in which I'm an authorized user (so it effectively doubles credit limit total). I pay off all of my credit cards every month, have never had a late payment, and very rarely ever carry over any balance in a month. However, the authorized user card is essentially maxed out, but it has been open for over 30 years and has never had a late payment, making minimum payments every month.

    Will the sudden loss in total credit limit and the loss of a long-history card hurt my score overall when compared with having zero credit utilized every month? I am looking to get a medical school loan in the near future, should I postpone removing myself from this card until after that or do it ASAP?

    Thanks!

  2. #2
    Join Date
    Jan 2006
    Posts
    38,530

    Default Re: Removing Authorized User and Credit Score

    It isn’t your account, at least as you’ve explained it, so it shouldn’t affect tour credit score. It isn’t tour choice to be on it as an authorized user or not.

    Bottom line: that credit card should not show up on your credit history since you have no liability for it.

  3. #3
    Join Date
    Mar 2013
    Posts
    16,857

    Default Re: Removing Authorized User and Credit Score

    Quote Quoting Aquarius9217
    View Post

    Will the sudden loss in total credit limit and the loss of a long-history card hurt my score overall when compared with having zero credit utilized every month? I am looking to get a medical school loan in the near future, should I postpone removing myself from this card until after that or do it ASAP?
    I suggest you go to www.annualcreditreport.com and pull all three of your credit reports.

    If that card is not listed then it never has effected your credit score and never will.

    However, if it's listed then you may have been a joint accountholder instead of just an authorized user. It's easy for card holders to mistake the difference.

    If it's listed it would be best for your parents to close the card and replace it with one in their names only. The card will eventually show as closed on your credit reports and won't appreciably effect your score.

    Your financial situation is similar to mine (no debts, no payments) and my score has hovered around 800 for decades, plus or minus 10 pts either way. I recently closed two cards and opened another (for a $200 bonus ) and my score went from 804 to 793 to 798 during the last two months. No biggie.

    Ironically, they tell me I can have an even better score if I borrowed money and made regular payments. No thanks. Paying interest is throwing money down the toilet.

    Several credit cards give you your score online now for free.

  4. #4

    Default Re: Removing Authorized User and Credit Score

    One of my credit cards did offer a free FICO score, and that's what triggered this. My score is sitting comfortably at 770, but when I checked the details I saw the debt amount and nearly threw a stroke. That lead me to request my free credit report on annual credit report, and the credit card in question does indeed show up on my credit history. All of my own credit cards show up as $0 balance, never late. My student loan shows up as $0 balance, never late, closed. The credit card my father owns shows up as my lone source of debt, and it's essentially maxed out with a balance of 98% of it's credit limit. There are no other credit items at all on my reports. So given this, should I try and get my name taken off, or should I wait until after the medical school loan process? What kind of effect on my credit should I expect?

  5. #5
    Join Date
    Jul 2010
    Posts
    7,603

    Default Re: Removing Authorized User and Credit Score

    That's the downside of being an authorized user on someone else's card. If they behave, you benefit. If they don't, you suffer.

  6. #6
    Join Date
    Mar 2013
    Posts
    16,857

    Default Re: Removing Authorized User and Credit Score

    Quote Quoting Aquarius9217
    View Post
    should I try and get my name taken off
    Yes. ASAP.

    Given that your credit limits are almost the same as your father's debt, your credit card usage to credit card limit ratio is about 50% which isn't too bad given your score of 770. Which, by the way, is in the excellent range (760 to 850).

    But all it takes is one late payment and your score drops.

    You might be a responsible party to the debt instead of a non-responsible authorized user and the bank might not relieve you of that responsibility while it has two fish on the hook.

    Best for your father to transfer his balance to a card in his name only and cancel the card you're on so it shows closed at customer's request on your credit.

    Quote Quoting Aquarius9217
    View Post
    What kind of effect on my credit should I expect?
    I can only speculate but my guess is that, once the card is cancelled, your score should creep up gradually over the ensuing months.

    I don't know how the entry would read if your name was just taken off the card, if that's even possible.

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