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Member
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Registered: ‎01-17-2013
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Authorized user or lower credit limit?

So I currently have two credit cards that I pay off completely each month. Card #1 has a limit of 5k and is the card I use primarily. Card #2 has a limit of 25k but I am an authorized user with my father being the original owner. He never uses the cards and statements/payments are entirely managed by me. From the standpoint of my FICO score, which of these two options would be optimal? I can have my father removed from Card #2 so it will be solely in my name, but the credit limit will likely drop with it. Or do I remain an authorized user with the higher limit? I am getting mixed information on how the utilization ratio is incorporated to the FICO score if I am only an authorized user on the card. Since my total credit available is 30k with 25 of it on that card, it could make a big difference.

 

So....should I be an authorized user with higher credit limit or have the card solely in my name with a lower limit? Thanks!

Valued Contributor
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Registered: ‎01-24-2012
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Re: Authorized user or lower credit limit?

No company I know will remove the card holder and switch it over to the authorised user. Joint accounts may have this option, but I am almost certain an authorised user can not achieve this.

Established Member
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Registered: ‎01-08-2013
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Re: Authorized user or lower credit limit?


Yeah this is not an option, they would tell you to apply for your own card and start from scratch and forfeit the history. 

Amex Delta Gold $8,000 - Discover IT $1,250 - Citi Foward $2,000 - Capital One $300 - Banana Republic $300 - Walmart $300
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Re: Authorized user or lower credit limit?


navigatethis12 wrote:

No company I know will remove the card holder and switch it over to the authorised user. Joint accounts may have this option, but I am almost certain an authorised user can not achieve this.


+1

 

Start: Nov'12 EQ 699/EX 685/TU 696 / Current: April''14 EQ 715/EX 709/TU 709 * Goal 750+


Member
Posts: 17
Registered: ‎01-17-2013
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Re: Authorized user or lower credit limit?

You guys may be right, but Chase said that they could do it. They sent forms to me and my father to sign and they made it sound like it would not be a problem. Maybe the person I met with thought it was a joint account by mistake...I will continue to look into it.

 

In either case, the question still applies. Is it better to be an authorized user on a card with higher limit or remove myself from the card and open another with a lower limit in my name? Any ideas would be appreciated. Thanks guys!

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Posts: 24,408
Registered: ‎10-23-2007
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Re: Authorized user or lower credit limit?


sdevine42 wrote:

You guys may be right, but Chase said that they could do it. They sent forms to me and my father to sign and they made it sound like it would not be a problem. Maybe the person I met with thought it was a joint account by mistake...I will continue to look into it.

 

In either case, the question still applies. Is it better to be an authorized user on a card with higher limit or remove myself from the card and open another with a lower limit in my name? Any ideas would be appreciated. Thanks guys!


Chase is one of the few banks these days that DOES allow you to request to remove a "Joint" account holder", not sure about AU but I guess why not because it's basically like you and your father applying for new credit... Chase will not only pull a HP on you to see if you can qualify on your own for the $25k but they will HP your father to see if he qualifies for the $25k limit... you can find yourself with a CLOSED account in the end if they don't like it... but they won't issue you the account with lower limit, it will either be:

1. Declined for removing father and account will stay joint between the 2 of you.

2. Declined to both of you and the account closed or sometimes CLD.

3. They approve you and remove father and you would retain account with the $25k.

Fico Scores: EQ- 670., TU 705 Sync, EX 728 SoFi(05/04/15)
I'm just trying to catch up to RON1
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
83 Cards and Counting :smileytongue:
Member
Posts: 17
Registered: ‎01-17-2013
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Re: Authorized user or lower credit limit?


Creditaddict wrote:


Chase is one of the few banks these days that DOES allow you to request to remove a "Joint" account holder", not sure about AU but I guess why not because it's basically like you and your father applying for new credit... Chase will not only pull a HP on you to see if you can qualify on your own for the $25k but they will HP your father to see if he qualifies for the $25k limit... you can find yourself with a CLOSED account in the end if they don't like it... but they won't issue you the account with lower limit, it will either be:

1. Declined for removing father and account will stay joint between the 2 of you.

2. Declined to both of you and the account closed or sometimes CLD.

3. They approve you and remove father and you would retain account with the $25k.


Very interesting stuff. Thanks Creditaddict. I'm beginning to get the vibe that it may be best to just leave it as is. Is it correct to assume that if I am only an AU that the $25k will be incorporated into my utilization calc?

Epic Contributor
Posts: 24,408
Registered: ‎10-23-2007
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Re: Authorized user or lower credit limit?


sdevine42 wrote:

Creditaddict wrote:


Chase is one of the few banks these days that DOES allow you to request to remove a "Joint" account holder", not sure about AU but I guess why not because it's basically like you and your father applying for new credit... Chase will not only pull a HP on you to see if you can qualify on your own for the $25k but they will HP your father to see if he qualifies for the $25k limit... you can find yourself with a CLOSED account in the end if they don't like it... but they won't issue you the account with lower limit, it will either be:

1. Declined for removing father and account will stay joint between the 2 of you.

2. Declined to both of you and the account closed or sometimes CLD.

3. They approve you and remove father and you would retain account with the $25k.


Very interesting stuff. Thanks Creditaddict. I'm beginning to get the vibe that it may be best to just leave it as is. Is it correct to assume that if I am only an AU that the $25k will be incorporated into my utilization calc?


What Card is it?

Fico Scores: EQ- 670., TU 705 Sync, EX 728 SoFi(05/04/15)
I'm just trying to catch up to RON1
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
83 Cards and Counting :smileytongue:
Member
Posts: 17
Registered: ‎01-17-2013
0

Re: Authorized user or lower credit limit?


Creditaddict wrote:

sdevine42 wrote:

Creditaddict wrote:


Chase is one of the few banks these days that DOES allow you to request to remove a "Joint" account holder", not sure about AU but I guess why not because it's basically like you and your father applying for new credit... Chase will not only pull a HP on you to see if you can qualify on your own for the $25k but they will HP your father to see if he qualifies for the $25k limit... you can find yourself with a CLOSED account in the end if they don't like it... but they won't issue you the account with lower limit, it will either be:

1. Declined for removing father and account will stay joint between the 2 of you.

2. Declined to both of you and the account closed or sometimes CLD.

3. They approve you and remove father and you would retain account with the $25k.


Very interesting stuff. Thanks Creditaddict. I'm beginning to get the vibe that it may be best to just leave it as is. Is it correct to assume that if I am only an AU that the $25k will be incorporated into my utilization calc?


What Card is it?


Chase Slate

Epic Contributor
Posts: 24,408
Registered: ‎10-23-2007
0

Re: Authorized user or lower credit limit?


sdevine42 wrote:

Creditaddict wrote:

sdevine42 wrote:

Creditaddict wrote:


Chase is one of the few banks these days that DOES allow you to request to remove a "Joint" account holder", not sure about AU but I guess why not because it's basically like you and your father applying for new credit... Chase will not only pull a HP on you to see if you can qualify on your own for the $25k but they will HP your father to see if he qualifies for the $25k limit... you can find yourself with a CLOSED account in the end if they don't like it... but they won't issue you the account with lower limit, it will either be:

1. Declined for removing father and account will stay joint between the 2 of you.

2. Declined to both of you and the account closed or sometimes CLD.

3. They approve you and remove father and you would retain account with the $25k.


Very interesting stuff. Thanks Creditaddict. I'm beginning to get the vibe that it may be best to just leave it as is. Is it correct to assume that if I am only an AU that the $25k will be incorporated into my utilization calc?


What Card is it?


Chase Slate


That should report limit on your credit and help.

Fico Scores: EQ- 670., TU 705 Sync, EX 728 SoFi(05/04/15)
I'm just trying to catch up to RON1
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
83 Cards and Counting :smileytongue:
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