Added as authorized user and credit went down

[Anonymous]

Recently I was added as an authorized user to two of my wife's first premier credit cards. I did not want to do this but I had to for her to be eligible for SCRA benefits. I have been credited almost $2000 because they applied SCRA benefits which reduced interest rate to 6% and refunded all fees (they charge A LOT of fees) since feb 12th 2013. 

Because she has a poor payment history, my credit has gone down. Is there something that can be done about this? I did not know that her previous payment history would effect my credit. its not my card, I'm just an authorized user. I'm tempted to remove myself but I am sure they will take away the SCRA benefits. 

Both cards are paid off and now have credits on them (which I'm gonna get them to cut us a check so we can use it for other bills). So it does improve my credit utilization, but only by $600 ($300 each card). I am thinking we should just get our money and close the card, but she wants to keep it to work on her credit.

[gdale6]

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@Anonymous wrote:

Recently I was added as an authorized user to two of my wife's first premier credit cards. I did not want to do this but I had to for her to be eligible for SCRA benefits. I have been credited almost $2000 because they applied SCRA benefits which reduced interest rate to 6% and refunded all fees (they charge A LOT of fees) since feb 12th 2013. 

Because she has a poor payment history, my credit has gone down. Is there something that can be done about this? I did not know that her previous payment history would effect my credit. its not my card, I'm just an authorized user. I'm tempted to remove myself but I am sure they will take away the SCRA benefits. 

Both cards are paid off and now have credits on them (which I'm gonna get them to cut us a check so we can use it for other bills). So it does improve my credit utilization, but only by $600 ($300 each card). I am thinking we should just get our money and close the card, but she wants to keep it to work on her credit.

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As long as you are an AU you get the history of that account and its scored as if its your history the only way to get out from under it is to either remove self as AU and when it updates to terminated dispute them off as "Im not responsible for payment was only an AU". As far as closing you would need to do same thing after it updated to closed. I dont know what SCRA benefits are so no comment on that.

[RobertEG]

You are on active duty, and were informed that you must be an AU for your spouse to also be eligible for the 6% interest cap?

[pmarti8]

I don't know what SCRA benefits are, but if she has pretty recent late pays its going to ding your credit just like its dinging hers.  Is it possible you or her could get a secured card together and you can remove yourself from these two accounts? That's what I would do if I was required to show joint finances.

[Anonymous]

Yes. They told me I had to be added as an Authorized User before I could request SCRA benefits. And then they charged a $30 additional card fee per account. But it was refunded once I got the scra benefits applied. 

I'm guessing maybe they would have done it regardless, they're just clueless. 

[RobertEG]

The VA recommends contacting your local military legal affairs office for specific legal advise on requirments of the serviceman's relief act.

I would visit your local legal affairs office and present your question regarding the accuracy of the need for you to be an AU in order to obtain benefits for debts of your spouse.

That is a very specialized statute for which very specialized legal advise should be sought.

[Anonymous]

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@Anonymous wrote:

Recently I was added as an authorized user to two of my wife's first premier credit cards. I did not want to do this but I had to for her to be eligible for SCRA benefits. I have been credited almost $2000 because they applied SCRA benefits which reduced interest rate to 6% and refunded all fees (they charge A LOT of fees) since feb 12th 2013. 

Because she has a poor payment history, my credit has gone down. Is there something that can be done about this? I did not know that her previous payment history would effect my credit. its not my card, I'm just an authorized user. I'm tempted to remove myself but I am sure they will take away the SCRA benefits. 

Both cards are paid off and now have credits on them (which I'm gonna get them to cut us a check so we can use it for other bills). So it does improve my credit utilization, but only by $600 ($300 each card). I am thinking we should just get our money and close the card, but she wants to keep it to work on her credit.

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I would advise she get two other cards to replace them and close these accounts. You can then get the history removed from your reports and it should not have any effect on your SCRA benefit.

Tell your wife there are better cards to work with than FP. I would suggest Cap One and a secured card from a credit union such as SDFCU, NFCU, PenFed, DCU, etc.