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Credit Slash Impact on AU

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SCAREDCROW
Established Member

Credit Slash Impact on AU

I've carried a Credit Card trade line on my CR as an AU for quite some time.  Recently, the owner of that Credit Card fell into some financial difficulty, and has not been able to pay the credit card balance(s) with the enthusiasm they once did.  By this, I mean, they used to pay much greater than the minimum each month, and since the economic downturn, has paid only the minimum due.  The Credit Card company recently notified them that "due to payment patterns" their limits were being "reduced".  Naturally, this totally changes the utilization picture on that credit card which I think will impact my score.  Also, I don't know how that credit "reduction" is reported and if there is any negative credit impact as a result.  

 

I'd like some input and help for anyone that has knowledge / experience with this situation.  Would it be advisable to remove myself as an AU on this card?  What impact would removing my name as an AU directly have on my CR?  

 

Thank you for any and all information and assistance.

Message 1 of 3
2 REPLIES 2
YoungEntrepeneur
Established Contributor

Re: Credit Slash Impact on AU

Have the primary cardholder call their lender and remove you from their account.
Message 2 of 3
haulingthescoreup
Moderator Emerita

Re: Credit Slash Impact on AU


YoungEntrepeneur wrote:
Have the primary cardholder call their lender and remove you from their account.
Absolutely! And ASAP, before any other creditors you have get jittery.

This is the double-edged sword of AU accounts.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 3 of 3
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