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I just recently checked my credit score for the first time (as I am thinking about buying a house) and have a question regarding credit cards...
My main questions is in regards to an account on which I am an "Authorized User". I didn't know this until after checking my credit score and being floored by my "revolving balance" - but when I was in college, my mother opened a Discover card and apparently put my name on the account as well. This was all done with good intentions as she was approved for $15K and wanted to me to earn some credit. However, as the economy plumetted, my father's income became smaller and they were forced to use the credit card to pay unforseen, but necessary, bills. However, she has never been late on a payment.
The issue is this - the balance of this Discover card is currently $14,762. I have three other small credit cards ($100 limit, $300 limit, and $500 limit) - the total balance on all of these combined is $299 (which is 33% of my $900 limit - not ideal, but they are being paid off). However, this mystery card has my total limit up to $15,900 with a $15,061 balance! That is 94% - holy cow.
So, my question is, when my mom removes me as an authorized user (which I have already asked her to do) - how long will it take my credit score to go up?
My score is currently 671. My reports says the things weighing me down are a VERY high credit usage (due mainly to that one card), short credit history (nothing can help that but time), the amount owed on my revolving accounts is too high (due entirely to that one card), and the remaining balance on my non-mortgage installment loans is too high (I have massive student loan debt - paying it off the best I can, but there is only so much I can do with the amount I have).
So it seems two out of 5 are directly affected by that one card. What happens when she removes me? Will it looked like I closed an account? How will that affect my score?
Also, what is the turnaround for credit card companies getting this information out? For example, although it says the balance on one of my cards is $299, it is actually $200 due to a payment I made in the past couple weeks. $299 was the last statement amount - is that how often it is updated?
Any advice/answers anyone has to offer would be greatly appreciated!!
It may take a statement cycle or two for Discover to remove the account from your credit reports. But as soon as it is gone then your utilization picture should improve, assuming that your own 3 cards are paid down as well.
CCs report once a month to the CRAs, usually at the time the statement is generated. So the new lower balance should be reflected on your next statement.
When I had myself removed last month from DH's high balance CC's, The cards came off of EQ right away as the cycles closed. They were marked as no longer my account, but left on the TU report, but when I called them they filed a dispute and removed within days. I am not sure yet what happened to EX, but will be finding out soon.
Edit=typo
I have found it faster and easier sometimes to just dispute directly with credit report.
But can I dispute with the credit report if I am on the card? It isn't like it is technically a mistake - my mom just listed me on the card - even though I've seen/used it before...
No, get her to remove you. After that is done, THEN dispute it.
I'd wait for the next statement to cut. If you're still showing as an AU a few days after the statement date, then I suppose you could dispute it with the CRAs. But I'd only do that after you've given Discover a chance to update your CR.
Whne your mom called discover to take you off as authorized user they should have furnished her with a letter. You then need to call discover and tell them you want it deleted off your reports period.They will send you a letter. send to CRA via email/ call should take about a week after you get letter I did it so Im sure.