topic Re: Removing Authorized User in General Credit Topics

Removing Authorized User

str0129 — Wed, 28 Jun 2023 23:50:39 GMT

I'm an authorized user on a CC account with 95% utilization.

Will there be any negative affect to my scores if I remove myself as an authorized user? I don't even use the card, and it seems like this high balance is hurting my scores.

Re: Removing Authorized User

FireMedic1 — Thu, 29 Jun 2023 01:00:17 GMT

Welcome @str0129 . Get off that card like yesterday. 95% util is a killer. Get on it! Negative effects are in place right now.

Re: Removing Authorized User

SouthJamaica — Thu, 29 Jun 2023 01:37:21 GMT

@str0129 wrote:
I'm an authorized user on a CC account with 95% utilization.

Will there be any negative affect to my scores if I remove myself as an authorized user? I don't even use the card, and it seems like this high balance is hurting my scores.

I agree with @FireMedic1 that you should remove yourself immediately. No negative effect, probably significant positive effect.

Re: Removing Authorized User

str0129 — Thu, 29 Jun 2023 04:12:36 GMT

Thank you both for the quick advice, appreciate it! I'll get myself removed from that account ASAP.

Re: Removing Authorized User

captainsensation — Thu, 29 Jun 2023 17:26:39 GMT

I was in the same boat. i had a friend who had me as an authorized user of a $20K limit and he used all but $1k. At the time i only had only $20K of my own credit so my utilization was increased significantly. The good news was i was able to get all of those points back in a month (dropped 20 pts). The bad was i lost the history. Discover back dated the history from when HE opened the account. He got me on an American Express and they did not back date it but yeah, YMMV.

Re: Removing Authorized User

CH-7-Mission-Accomplished — Thu, 29 Jun 2023 18:26:26 GMT

@str0129 wrote:
Thank you both for the quick advice, appreciate it! I'll get myself removed from that account ASAP.

Be sure they do not delete the account but simply update it to show an ownership change from "authorized user" to terminated and that the account balance updates to zero and moves to the closed accounts section of your reports. It will continue to add to your average age of accounts for up to ten years. Have the tradeline completely removed from your reports is never a good idea unless there are late payments reporting. Otherwise, the default for credit card companies is to terminate and move to closed accounts. I have many AU accounts some active, some terminated, but every single one on my reports helping me.

Re: Removing Authorized User

CH-7-Mission-Accomplished — Thu, 29 Jun 2023 20:01:16 GMT

@CH-7-Mission-Accomplished wrote:
@str0129 wrote:
Thank you both for the quick advice, appreciate it! I'll get myself removed from that account ASAP.
Be sure they do not delete the account but simply update it to show an ownership change from "authorized user" to terminated and that the account balance updates to zero and moves to the closed accounts section of your reports. It will continue to add to your average age of accounts for up to ten years. Have the tradeline completely removed from your reports is never a good idea unless there are late payments reporting. Otherwise, the default for credit card companies is to terminate and move to closed accounts. I have many AU accounts some active, some terminated, but every single one on my reports helping me.

Oh, also the payment history stays on the account, it just hows up in the closed account sections. Do not shoot yourself in the foot and demand the account be removed from your reports. This is a bad idea unless new 30+ lates have been added since you were made an authorized user.

Re: Removing Authorized User

CH-7-Mission-Accomplished — Thu, 29 Jun 2023 20:06:36 GMT

@captainsensation wrote:
I was in the same boat. i had a friend who had me as an authorized user of a $20K limit and he used all but $1k. At the time i only had only $20K of my own credit so my utilization was increased significantly. The good news was i was able to get all of those points back in a month (dropped 20 pts). The bad was i lost the history. Discover back dated the history from when HE opened the account. He got me on an American Express and they did not back date it but yeah, YMMV.

Also, if you are trying to improve your profile by becoming an AU on someone's account, American Express is poor choice unless you are just looking to have AMEX benefits. AMEX is the only lender I have ever heard of who uses the date the AU was added instead of the original opening date from when the account was established by the primary cardholder. If you don't need or want to use an AMEX card, it will only hurt you by lowering your average age of accounts.

High utilization on an AU account is easily remedied by getting "terminated" because it will ALWAYS update to a zero balance no matter the actual balance.

Also you extend the benefits of the AU account by being added back later if the utilization problem is resolved and there are no new lates (do no do this with AMEX). I recently did this with AU accounts that were terminated five or so years ago by adding me or my partner back as active authorized users and the account moves from the closed accounts section with the terminated notation, back into the open accounts and you now get, in this case, five more years of account age and all the payment history again. You can later terminate again, Rinse and repeat. I have done this with Capital One, Discover, Chase, BofA, Navy and BECU. It works in every single case.

Re: Removing Authorized User

Jccflat — Sun, 02 Jul 2023 13:57:06 GMT

so I just removed myself from authorize user a card that has 30 K and 10 K balance is this affect my score it's a 10 years old account but I do have different 10 years old accounts on my account?

I just added a diff 10 years old accounts, being authorize user with a no balance

So I assume I'm not going to see a score drop only a increase since the 10k balance is off

Re: Removing Authorized User

Bruce2 — Thu, 27 Jul 2023 02:23:03 GMT

I have a situation where I have a card that has 5 months of lates. My son is an authorized user. Obviously it's tanking his scores. Is it better to remove him immediately or wait two months until the card is brought current? Util is of course high as well beyond 100%. Will it have no impact to his score once I remove him as an AU?

Re: Removing Authorized User

FireMedic1 — Thu, 27 Jul 2023 08:55:44 GMT

@Bruce2 wrote:
I have a situation where I have a card that has 5 months of lates. My son is an authorized user. Obviously it's tanking his scores. Is it better to remove him immediately or wait two months until the card is brought current? Util is of course high as well beyond 100%. Will it have no impact to his score once I remove him as an AU?

Welcome @Bruce2 It isnt what the card will be once current. Its the lates doing the damage. Let your son be late free and remove him.

Re: Removing Authorized User

Bruce2 — Thu, 27 Jul 2023 10:49:29 GMT

Thanks for the reply. So once I remove him the lates and util won't count against him/negatively affect his scores? For background it's a cap 1 card, when I log in to remove him as an AU it shows him listed as having no card and no option to delete, guess I'll have to make a call to customer service.

Re: Removing Authorized User

SouthJamaica — Thu, 27 Jul 2023 11:51:37 GMT

@Bruce2 wrote:
I have a situation where I have a card that has 5 months of lates. My son is an authorized user. Obviously it's tanking his scores. Is it better to remove him immediately or wait two months until the card is brought current? Util is of course high as well beyond 100%. Will it have no impact to his score once I remove him as an AU?

Remove him immediately.

Let him get a secured card or something, with which to build his credit.

Re: Removing Authorized User

Bruce2 — Thu, 27 Jul 2023 12:15:45 GMT

Thanks I got on their live chat and they removed him as an AU. He has his own cards now so I'm glad I won't be dragging him down with my poor payment performance.

Re: Removing Authorized User

SouthJamaica — Thu, 27 Jul 2023 20:03:51 GMT

@Bruce2 wrote:
Thanks I got on their live chat and they removed him as an AU. He has his own cards now so I'm glad I won't be dragging him down with my poor payment performance.

Good.

Welcome to the forum.

It's funny how it works out. I'm sure your "poor payment performance" is linked to all the money you've shoveled out over the years supporting your kid.