Authorized User on delinquent account

[liz01]

I have been an authorized user on a Macy's store card for several years, in fact it reports as 21 years even though I was added maybe 8 or 9 years ago.  The account holder recently fell upon hard time and apparantly aren't making their payments, so of course it's reporting negatively on my credit reports.  I have read that when you're an authorized user having the line removed from your reports is not terribly difficult (I could be wrong.)  My concern is how having it removed will affect my credit score.  It is by far my longest reporting line of credit, and was perfect payment history for all the 21 years that it's reporting until the past few months.  Should I leave it? Or try to get it removed?  If removed, should I contact the creditor or the credit reporting agencies?

Thanks in advance!

[gdale6]

---

@liz01 wrote:

I have been an authorized user on a Macy's store card for several years, in fact it reports as 21 years even though I was added maybe 8 or 9 years ago.  The account holder recently fell upon hard time and apparantly aren't making their payments, so of course it's reporting negatively on my credit reports.  I have read that when you're an authorized user having the line removed from your reports is not terribly difficult (I could be wrong.)  My concern is how having it removed will affect my credit score.  It is by far my longest reporting line of credit, and was perfect payment history for all the 21 years that it's reporting until the past few months.  Should I leave it? Or try to get it removed?  If removed, should I contact the creditor or the credit reporting agencies?

Thanks in advance!

---

Credit History is 35% of Fico Score, AAoA is 15%. AU should only be all positive, I would cancel self as AU then request the creditor remove the TL in its entirety from your CRs, if they wont do it then dispute it as you are just an AU and not responsible for repayment and you want it removed this you do with the CRAs directly.

[Anonymous]

I recently removed my self as a au from an account because the card was either always maxed, over the limit or 95 percent used up. I disputed it and it was removed my fako transunion through credit karma went down 91 points because my age of accounts now ranked going from 8 years to 2 BUT I think this was a good decision for me in the long run. I will slowly but surely build back up my account history and all my other cards have a utilization below 10 percent

[RobertEG]

I concur that, in general, removing any AU that has major delinquencies is usually advised, as payment history is the most significant scoring category.

An additional reason for removing the AU is the fact that while you have any AU account included in your scoring, your resulting score will not, by definition, be based only on your own credit history.  If a potential creditor does a manual review of your credit report, seeing an AU informs them that your score is based in part on information that is not your own credit history.  Thus, they might discount the value of your score in their credit determination.

When considering higher loan amounts, some creditors (e.g., mortgage lendors) may even require removal of AUs so that they can get a "real" score.

Once AUs are removed, your score will thereafter be based only on your own credit history.

[AverageJoesCredit]

I agree, establish own history so you will always be responsible for your own accounts.

[Anonymous]

A few points

1) Although you were only added 8-9 years ago doesn't change the HISTORY of the account.
Ppl confuse being ADDED to an EXISTING account as, opening a new account...It isn't.

Think an expansion sports team being a NEW team, whereas an AU add on just means you've been added in to the existing history....

That's why the OKC Thunder's history will go BACK to their start in Seattle and the Lakers championship history includes rings in Minneapolis.

This is why as mentioned above it's best to use AU accounts to allow one to jump the line to get in and START one's own profile...But once you push away from the dock it's time to sail on your own.

Cause as @Robert stated under higher UW standards AUs muddy the waters and can work AGAINST the applicant...

Example, when a 22 y.o. has an account listed, since they were 15 as an UW...One can easily see to discount the value of said history no matter the credit score....This happened all the time, in places I've worked...The applicant would get approved but with weak terms because we'd feel the file was at best suspect.

With my kid's, being AUs allowed them both to get HUGE 1st time young credit approvals but it makes since to use accounts where the age of the account works with their age.

Btw, the creditor isn't where one starts the dispute process, remember an AU has ZERO relationship with the creditor, you have no standing to request anything from them....You must dispute the reporting at the CRA level...It'll fall off easy, again there is no relationship at all...The AU designation is simply a favor done for an account holder....No different than you asking the management to allow a guest in your apartment, the rent is between YOU and the landlord only!

[heavyjay]

The only thing I'd add is that OP might have to have the account owner remove her as AU, as many creditors won't allow an AU to remove him/herself.

[fltireguy]

---

@Anonymous wrote:
I recently removed my self as a au from an account because the card was either always maxed, over the limit or 95 percent used up. I disputed it and it was removed my fako transunion through credit karma went down 91 points because my age of accounts now ranked going from 8 years to 2 BUT I think this was a good decision for me in the long run. I will slowly but surely build back up my account history and all my other cards have a utilization below 10 percent

---

Who cares what CK says the score change was?

What affect did it have on our REAL scores?