AUS and Authorized User

[Anonymous]

I am an authorized user on a few of my mother's credit cards. I've been trying to get them removed because they've increased my credit utilization %. I'm not going to be able to get this done before I apply for pre-approval. I've accepted the fact that I'll take the credit score hit, but I need to know if it will affect my DTI ratio. How does an AUS work? When accounts/information is loaded, does it disregard the min. payments for non-ownership (authorized user) accounts? I need to know ASAP and appreciate any help.

[Anonymous]

If the account shows on your credit report it will factor into DTI.  So yes, it will count.  At least I am pretty sure it will.

[WannaHouse]

As an AU, you are NOT responsible for the account. You gain the age of the account and the utilization. If the cards are maxed out, or even close, they WILL hurt your score. The money owed on the cards does NOT count in your DTI. It is not your debt.

I would have mom call her CC's and have you removed if that is what you want. Just remember, you will lose all the good with the bad if you do that.

[Anonymous]

Good to know.  When we bought our place they counted an AU account towards DTI.

[DallasLoanGuy]

Just prove that they are mom's and they will be excluded from dti.

Usually, a mom letter will do. But if the file is pretty weak, expect underwriter to ask for some solid evidence that mom is paying them.

Countless times I have had 'mom' write a letter to say: "I added joe borrower to the card so they could use it in emergencies". NEVER had a problem.