First Post & Authorized User Questions

[Newtocredit94]

Hello, all.

This is my first post on this forum, and I must say, I am astounded at the plethora of information contained here, and I must thank you all for it! Just a little background before I pose my question. I am only eighteen years old and have one credit card,( with 1fbusa) which I have had for six months. The original CL was $250, but was increased last month by a factor of $1,000 to $1,250. According to Credit Karma (which we all know is innacurate, at best) my score is about 713 +/- 0.

My question is that my parents recently recieved a Texaco card, which I am an authorized user on. I have faith that the bill will be paid on time, however I am concerned that this will negatavely impact my credit score because I have a very limited credit report. I don't want it to appear as if I am relying on someone elses (my parents) credit line to bolster my own. I anticipate that the account will report this month. Should I remove myself as an authorized user before it reports, or is it too late because the statement has been generated? Will it hurt me more if I remove myself because it will seem as if I opened an account an immediately closed it? I really am just trying to avoid having my second oldest account belong to someone else other than myself.

[b_seeker]

Edit - Silly me, forgot to say Welcome to the forums!

My oldest account is my Dad's 10.5 year old Discover card. My next oldest account is a 5 year old student loan. I've never had any issues with banks thinking I rely on another's credit. It won't negatively impact your score as long as the bill is always on time and the utilization is low. The beautiful thing with AU cards is that you can remove yourself easily and immediately erase any negative history with the card. This is assuming you do mean AU and not Joint.

For example, I took myself off my Dad's card. It is still reporting but TU had an incorrect 85% utilization showing so I disputed it and they removed the entire tradeline(which wasn't quite my goal but whatever). It still shows on EQ//EX with 0 balance and does nothing but help me there.

Because the card is younger than your current card, you could see a slight drop due to AAoA, but that will happen when you apply for a new card for yourself anyway and will rebound pretty fast. It looks good to have more than a single entry on your reports anyway. 

[Newtocredit94]

Thank you for the speedy and informed reply! Just to clarify, if I do decide to remove my self as an AU there will be no negative side effects as long as the account is in good standing when I do so, correct? I think I will let the card report for a few months, then remove myself...

[b_seeker]

Some creditors will immediately remove the tradeline when you take yourself off as AU. You should just leave yourself on, IMO, until you get more established credit. (Additional lines of your own either loans/other CCs). If the card does happen to get negative info then you can just take yourself off and dispute with the CRAs.

[Wolf3]

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@Newtocredit94 wrote:

Hello, all.

This is my first post on this forum, and I must say, I am astounded at the plethora of information contained here, and I must thank you all for it! Just a little background before I pose my question. I am only eighteen years old and have one credit card,( with 1fbusa) which I have had for six months. The original CL was $250, but was increased last month by a factor of $1,000 to $1,250. According to Credit Karma (which we all know is innacurate, at best) my score is about 713 +/- 0.

My question is that my parents recently recieved a Texaco card, which I am an authorized user on. I have faith that the bill will be paid on time, however I am concerned that this will negatavely impact my credit score because I have a very limited credit report. I don't want it to appear as if I am relying on someone elses (my parents) credit line to bolster my own. I anticipate that the account will report this month. Should I remove myself as an authorized user before it reports, or is it too late because the statement has been generated? Will it hurt me more if I remove myself because it will seem as if I opened an account an immediately closed it? I really am just trying to avoid having my second oldest account belong to someone else other than myself.

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I think you are better off keeping the AU card.   Having only 1 CC is likely reducing your score and this should help in the long run.  There are many legitimate reasons to have an AU card, I dib;t think you need be concerned with "how it appears".