Removal of Authorized User

[Anonymous]

I've been following the thread about the AUs and how they will no longer be reported starting sometime in 2008.  However, I have one TL as an authorized user, and it's helped by score.

I requested the credit card owner remove me as an AU and that's done.  The credit card balance is being paid down, and I don't see that being reflected on my CRs. I don't think that record is being updated - it's dead. I am thinking of sending notice to the Bureaus with proof that I am no longer an AU, but I don't know if that will be interpreted for 'scoring' purposes as a closed account. Any input from the experts is appreciated.

[SmartCookie]

Is it updating each month?

Do you want any bonus this AU account might give, or you want it removed?

[Anonymous]

If the AU TL is adverse in some way, then by all means dispute it away with each of the CRAs. The CRAs have been stung in court over AU TLs, so they don't normally mess around. You tell 'em AU TL, and they'll delete it.

However, if the AU TL is positive, then leave it be as it's still helping you. The FICO scoring changes have perhaps been put on hold with the one CRA that was supposed to implement them in September. But that doesn't matter. When AUs stop helping, they'll stop helping. Don't throw out gift horses prematurely.

Unless the AU TL is maxed out or nearly so, then it's likely helping you.

[Creditaddict]

Looking at my 3 reports, TU seems to be the only report that shows my AU accounts.  In addition any that I am no longer on report how they were the day I was removed and never update again.  So yes they help me for how old they are and good pay history, but as you are seeing, may be reporting a balance that isn't there.  However, I can not answer rather this balance is being reported in my ratios or just as good account that is no longer there.

[Anonymous]

The TL on which I am an AU is almost maxed out, so that can't be helping from a utilization point of view. I don't think it's updating - probably because I've been removed as an AU ??? I don't know.  I'm just wondering if its more harm to leave it as is, or to remove it, and whether removing it would hurt scores as if the account had been closed.  Tuscani usually seems to offer great insight on other topics - any insight you can share on this one Tuscani?

[SmartCookie]

Tusc is out with his iguana at their Tae Kwon Do lesson, so until he pops back in to give you his opinion...

Yeah I wouldn't expect that it had been updating but wasn't clear on that or if it was reporting as open or closed.  There is no way to know how much this AU TL is currently affecting your score + or - but I would think that if there are no lates and it is adding age for the moment.... it is possible that it is helping more than hindering.

The great thing about an AU account is that you can dispute it right now, have it deleted, and see for yourself how it will or won't impact you.  If it does impact for the negative, get back on it with the option of removing your association with the account when it is reporting favorably... like after a payment bringing the balance to what it shows now or less updates on it.