topic Re: Effects of Removing an Authorized Account in Credit Cards

Effects of Removing an Authorized Account

Anonymous — Wed, 25 May 2011 15:51:57 GMT

After reading a few past posts, I've learned that by removing myself as an authorized user can have a negative impact on my score (730) due to my short credit history. The account I want to remove is about 10 years old and is about maxed out. If I remove myself, how badly do you think it will hurt my score? The oldest card I am authorized to use is 12 years old so I will still have some history on my report.

Re: Effects of Removing an Authorized Account

Anonymous — Wed, 25 May 2011 15:55:09 GMT

Hi javous,

What is your AAofA with this card still reporting? And what will your AAofA be with this account removed?

Re: Effects of Removing an Authorized Account

Anonymous — Wed, 25 May 2011 16:05:50 GMT

Sorry, what exactly does AAofA stand for? Does it have something to do with the opening of the account?

Re: Effects of Removing an Authorized Account

Anonymous — Wed, 25 May 2011 16:24:28 GMT

Hi Javous,

AAofA is your Average Age of Accounts. (Common Abbreviations from User Guidelines and Information)

One of the impacts of being an AU is the change in your AAofA. Derogatories and utilization may also impact AU's.

AAofA is the average age of all accounts on your credit report (whether open or closed). Age is figured from opening date of the account to now.

Do not include public records or collections (someone will correct me if I'm wrong on that) when you figure your AAofA.

hope that's helpful!

And Welcome! Glad you're here!

Re: Effects of Removing an Authorized Account

Anonymous — Wed, 25 May 2011 17:00:55 GMT

Thanks for the link to the abbreviations

My AAofA with the card is 4 years.

I am not sure how to caculate AAofA, but here are my following 4 accounts with dates opened:

Macys AU- 1998

Chase AU- 2001

Discover- 2008

Amex Blue- 2009

By removing the Chase, the average age would be 6 years, but I am sure its wrong since right now my AAofA is 4 years.

Thanks for the help all.

Re: Effects of Removing an Authorized Account

MarineVietVet — Wed, 25 May 2011 17:07:57 GMT

@Anonymous wrote:
Thanks for the link to the abbreviations

My AAofA with the card is 4 years.

I am not sure how to caculate AAofA, but here are my following 4 accounts with dates opened:

Macys AU- 1998
Chase AU- 2001
Discover- 2008
Amex Blue- 2009

By removing the Chase, the average age would be 6 years, but I am sure its wrong since right now my AAofA is 4 years.

Thanks for the help all.

Here's how I figure AAoA:

Your AAoA is the sum of the ages of every account (except CA collections and public records) on your report, whether open or closed, calculated in months, divided by the number of accounts and then divided by 12. I use the division by 12 to make it easier to convert into years. This is measured from the time each account was opened (month and year) until present.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: Effects of Removing an Authorized Account

Anonymous — Wed, 25 May 2011 19:51:22 GMT

Hello I was reading the posts and you seem very knowledgeable and was wondering if you can give me some advice. I am an AU on a 15 year old Discover account. It is at 100% utilization paid on time and in good standing but when I looked at my CR 5/23 it says that the high balance is hurting my score. If I remove myself as an AU will it help or decrease my score. MY AAofA is 3 years, I pay may bills on time. Have one open installment student loan pays as agreed, paid off car loan wiht chase, capital one credit card and macys revolving credit cards with zero balance. current score 693.

Re: Effects of Removing an Authorized Account

Anonymous — Wed, 25 May 2011 20:58:34 GMT

MarineVietvet wrote:

Here's how I figure AAoA:

Your AAoA is the sum of the ages of every account (except CA collections and public records) on your report, whether open or closed, calculated in months, divided by the number of accounts and then divided by 12. I use the division by 12 to make it easier to convert into years. This is measured from the time each account was opened (month and year) until present.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

I am still getting a different AAofA from what is stated on transunion report. According to its summary, my AAofA is 4 years. But when I use your method, converting everything into months, I get an AAofA of 6.8 years. When I remove my Chase account, I get 5.8 years.

If this is correct, how badly will still affect my credit score if AAofA drops by one year?

Thanks.

Re: Effects of Removing an Authorized Account

MarineVietVet — Wed, 25 May 2011 21:35:08 GMT

@Anonymous wrote:
Hello I was reading the posts and you seem very knowledgeable and was wondering if you can give me some advice. I am an AU on a 15 year old Discover account. It is at 100% utilization paid on time and in good standing but when I looked at my CR 5/23 it says that the high balance is hurting my score. If I remove myself as an AU will it help or decrease my score. MY AAofA is 3 years, I pay may bills on time. Have one open installment student loan pays as agreed, paid off car loan wiht chase, capital one credit card and macys revolving credit cards with zero balance. current score 693.

The longer I participate here the more I realize how little I really know.

One good thing about being an AU is the ability to be removed from an account to see just how this action will affect you. If you find your score drops from being removed you can always be added back on the account.

Re: Effects of Removing an Authorized Account

MarineVietVet — Wed, 25 May 2011 21:40:58 GMT

@Anonymous wrote:

I am still getting a different AAofA from what is stated on transunion report. According to its summary, my AAofA is 4 years. But when I use your method, converting everything into months, I get an AAofA of 6.8 years. When I remove my Chase account, I get 5.8 years.

If this is correct, how badly will still affect my credit score if AAofA drops by one year?

Thanks.

Common sense tells me that an AAoA going down a full year would cause downward movement in a score but often there seems to be no common sense when it comes to credit.

Have yourself taken off this account and then monitor your scores. If it seems like removal was a bad idea simply have yourself added back on the account.

Re: Effects of Removing an Authorized Account

Anonymous — Wed, 25 May 2011 21:50:11 GMT

MarineVietvet wrote:

Common sense tells me that an AAoA going down a full year would cause downward movement in a score but often there seems to be no common sense when it comes to credit.

Have yourself taken off this account and then monitor your scores. If it seems like removal was a bad idea simply have yourself added back on the account.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

That seems like a good idea, but I'm guessing I would have to wait a month before my score updates? Or would it be instant with the FICO ScoreWatch??

Thanks

Re: Effects of Removing an Authorized Account

MarineVietVet — Wed, 25 May 2011 21:54:54 GMT

@Anonymous wrote:

That seems like a good idea, but I'm guessing I would have to wait a month before my score updates? Or would it be instant with the FICO ScoreWatch??

Thanks

It depends on when that particular issuer reports to the CRA's and then how long the CRA's take to update their records but no it likely won't be in a few days.

But that's another one of those YMMV situations. Let us know what happens to your score if you decide to have yourself removed.

Re: Effects of Removing an Authorized Account

Anonymous — Thu, 26 May 2011 05:44:54 GMT

thanks for getting back to me. I have another question if I remove and add myself back would it affect me negatively in my mortgage pursuit

Re: Effects of Removing an Authorized Account

MarineVietVet — Thu, 26 May 2011 05:58:32 GMT

@Anonymous wrote:
thanks for getting back to me. I have another question if I remove and add myself back would it affect me negatively in my mortgage pursuit

I don't believe anyone can answer that because no one knows what will happen to your credit profile until you actually remove yourself and/or add yourself back. I know that's not a very good answer but some things are just unknown.

Re: Effects of Removing an Authorized Account

Anonymous — Thu, 26 May 2011 15:14:47 GMT

Thank you for your honesty I really appreciate it and will keep the forum posted of the outcome. Best regards.