Authorized User Account/ Helping or Hurting ?

[Countryboy1]

Everyone,

Thanks for all the help in the past that led me to getting all my scores above 700 (barely but still good none the less). So when I started paying attention to my credit I was added as an authorized user when I didnt really have any cards nor had the credit to get any. Fast foward a couple of years and I have my own cards and believe th AU card is starting to hurt more than help but thats where your wisdom come in. I will list all the info that I can to help make an educated decision. 

Scores: TU 706/EQ 705/EX 703

AAOA  2 years 7 Months

Credit Utlization 11%

REVOLVERS No Lates

Cap One  3248/6900  Opened 10/15  AU Account in question

Chase 14/600  Opened 9/16  AU Account

Cap One 0/500 Opened 7/19

Discover  0/1200  Opened 11/19

Ivan smith Furniture 2000/10000  Opened 3/20

NFCU  0/4600  opened 3/20

NFCU 740/25000 Opened 6/20

Car loan #1

Opened 4/17

13700/42000

5 lates payments all in 2018

Car Loan #2

Opened 12/18

3800/7200

100% on time Payments

[RSX]

i would drop both AU accounts

one is over 50% which is hurting more than helping

the other is only a $600 line, which is really not helping you at all

you will go from 12.2% util, down to 6.6% and will very likely see a solid jump in your score

you have enough of your own cards now - might as well cleanup all the AU accounts, since they are no longer needed

and above 700 is just fine - dont stress over that

[Anonymous]

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@Countryboy1 wrote:

Everyone,

Thanks for all the help in the past that led me to getting all my scores above 700 (barely but still good none the less). So when I started paying attention to my credit I was added as an authorized user when I didnt really have any cards nor had the credit to get any. Fast foward a couple of years and I have my own cards and believe th AU card is starting to hurt more than help but thats where your wisdom come in. I will list all the info that I can to help make an educated decision. 

Scores: TU 706/EQ 705/EX 703

AAOA  2 years 7 Months

Credit Utlization 11%

REVOLVERS No Lates

Cap One  3248/6900  Opened 10/15  AU Account in question

Chase 14/600  Opened 9/16  AU Account

Cap One 0/500 Opened 7/19

Discover  0/1200  Opened 11/19

Ivan smith Furniture 2000/10000  Opened 3/20

NFCU  0/4600  opened 3/20

NFCU 740/25000 Opened 6/20

Car loan #1

Opened 4/17

13700/42000

5 lates payments all in 2018

Car Loan #2

Opened 12/18

3800/7200

100% on time Payments

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@Countryboy1 what was the highest level of severity of your lates?  I'm assuming it's at least a 60 day late and you're in a dirty Scorecard?

(If they're only 30 day lates, then you're in a clean scorecard and dropping those authorized user accounts would move you from a mature Scorecard to a young Scorecard.)

either way, those are your two oldest accounts. So you're gonna lose some points for age, but you're going to gain some points for utilization going down as stated...maybe.

It actually may have no effect at all on 8/9 if it's being discounted by the anti-abuse portion of the algorithm. So do you even know whether they are being counted by 8/9? Regardless they are counting on the mortgage scores no matter what and the age is benefiting you there. But utilization is much more important than age.

I would definitely drop the one with a higher utilization if that's a chronic situation. If the other one maintains low utilization, then it may not hurt to keep it for the age benefit. I would also try to Goodwill those lates. 

[Countryboy1]

Thanks for the response birdman. I did leave some important info off by accident.

The lates are 30 day lates BUT

I have a charge off from 2016 that was paid in 2018 and stop reporting. i know i know... Thats a game changer i bet

[Anonymous]

A CO is a major negative item where a 30D is only a minor delinquency.  That CO no doubt is significant and will put you in a dirty scorecard.  Regarding the AU account, my opinion is to drop it.  If you're able to remain an AU on the lower utilization Chase account you can roll with that in order to maintain an older AoOA until your own gets to where you are comfortable.

[RobertEG]

Aside from the issue of whether or not inclusion of the AU is helping or hurting your score, there is always the basic issue that scoring including an AU account necessarily means your score is, by definition, no longer a representation of your own credit history.

It is being impacted, positively or negatively, by the credit history of another.

Lenders are aware of that basic fact, and will know if they do a manual review of your credit report that the score they are provided is not limited to an evaluation of only your own personal credit history.

While they may not do a manual review for application of lower amounts of credit common with building or rebuilding credit, when a consumer is applying for a high amount of credit, such as a mortgage loan, the underwriting process is almost certain to include a manual review.

Many mortgage lendors will require removal of any AU accounts so that they can then receive and review a "real" score that is based only on the consumer's own history.

If in any doubt, or if you kow a lender will have such an underwriting policy, then ditching AU accounts may be prudent regardless of their affect on your three-digit credit score.......

[Anonymous]

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@Countryboy1 wrote:

Thanks for the response birdman. I did leave some important info off by accident.

The lates are 30 day lates BUT

I have a charge off from 2016 that was paid in 2018 and stop reporting. i know i know... Thats a game changer i bet

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@Countryboy1 well it just put you in a dirty card as I had assumed you may have been in. That means you would not move to a young Scorecard if you dropped them. But my advice remains the same. Utilization is more important than age.