Implications of Being an Authorized User - Checking My Understanding

[Anonymous]

I'm an authorized user on my grandmother's credit card. My understanding is that what she does with the card affects my credit score. Is that right? 

I ask because I'm planning to buy a house relatively soon, so I want to maximize my credit score. I essentially never use my grandmother's credit card, so my decision to remain an authorized user or not is solely based on how it impacts my credit. So far, my grandmother has always paid off the total statement balance each month and the balance is never that high. However, I'm a little nervous that she might make a big purchase at some point (and I'm not sure if/how that would affect my credit score). Would removing myself as an authorized user help, hurt, or be irrelevant to my credit scores?

[Broke_Triathlete]

---

@Anonymous wrote:

I'm an authorized user on my grandmother's credit card. My understanding is that what she does with the card affects my credit score. Is that right? 

I ask because I'm planning to buy a house relatively soon, so I want to maximize my credit score. I essentially never use my grandmother's credit card, so my decision to remain an authorized user or not is solely based on how it impacts my credit. So far, my grandmother has always paid off the total statement balance each month and the balance is never that high. However, I'm a little nervous that she might make a big purchase at some point (and I'm not sure if/how that would affect my credit score). Would removing myself as an authorized user help, hurt, or be irrelevant to my credit scores?

---

Yes, what she does will affect you. Her card will help your total available CL and as long as her utilization is low then that will help too. However, if she runs high utilization and/or missed payments that will affect you negatively as well. So as long as she's responsible it'll positively help, but if she's irresponsible it'll negatively affect you. Good luck!

ETA: The good thing is utilization has a short memory so if she does make a big purchase and pays it off quickly your score will rebound quickly. If she takes some time to pay it off it'll take more time for your score to rebound.

[takeshi74]

---

@Anonymous wrote:

I'm an authorized user on my grandmother's credit card. My understanding is that what she does with the card affects my credit score. Is that right?

---

If the scoring model considers the TL.  There's allegedly anti[piggybacking logic in at least some of the scoring models and we don't have the details on how piggybacking is determined.

---

@Anonymous wrote:

However, I'm a little nervous that she might make a big purchase at some point (and I'm not sure if/how that would affect my credit score). Would removing myself as an authorized user help, hurt, or be irrelevant to my credit scores? 

---

In addition to whether or not the TL is considered it all depends on your credit profile.  It is not just a matter of the TL itself.  Consider the stadard factors and think about how your credit profile would be affected without her account.  Calculate impact to Revolving Utilization which falls under Amounts Owed.  Calculate the change in your AAoA which falls under Length of Credit History.

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

We can't tell you specific scoring information such as how many points you'd gain or lose.  We can only go over very general information such as the above.  The people that requent the Understanding FICO Scoring subforum may be able to provide a little more insight.

Any impact due to Revolving Utilization isn't a long term hit.  Even if she does rack up a large balance, scores would recover as the Revolving Utilization drops.  Revolving Utilization only considers the current balance and limit info as indicated on your report.  Any scoring model uses the data in your report to generate a score.