Authorized User

[Anonymous]

I am an Authorized User on a Discover Card.  I rarely use the card.  Only for emergencies.  I recently received an alert from Experian that the credit limit was reduced and now there is a utilization of 90% instead of 65% which is a direct result of the primary owner activity.  My Experian Fico score dropped 23 points.  There are no late payments on the credit card.  I am basically debt free.  I do have an extensive credit history going back 15 years.  I had some serious medical bills 7 years ago and my credit was damaged.  Before I had the medical issues, my credit was perfect.  All the negative items have finally dropped off due to being 7 years old.  My credit score immediately shot through the roof. I have nothing on my report except for the Discover card which as I mentioned before is in excellent standing since I was first added in 2010.

If I remove myself as an authorized user, will my credit score go up or down? 

Thanks.

Mohawk

[Gunnar419]

When you say you have nothing on your report except the Discover card, do you literally mean nothing? Nothing currently reported? No car loan, no mortgage, no other credit cards? Or are you just saying you have nothing negative on your report except for the high Discover util?

[Anonymous]

Nothing is currently reported as open.  It does reflect 2 Installment Loans for 2005 & 2006 both paid satisfactorily and in good standing with no late payments and closed.  I had revolving accounts in 2005 with paid satisfactorily and in good standing and closed.  I have no car loan, mortgage or other credit cards, except for the Discover Card which I am an authorized user.  I do realize that the Discover Card has probably helped my credit score for the past 4-5 years.  It seems like it is now hurting my score.

[Anonymous]

I think the discover card is giving you a few advantages.  

1.  The card is the only reason you are even showing a credit score. -   To get a score, you need to have at least one account that has been open for 6 months or more.  (OR at least one undisputed account that has been reported to the credit bureau with in the past six months)

2.  It is the only revolving credit card you have.  You should get a credit card (or two) in your name and let it start reporting before you cancel the AU.

3.  It is boosting your age of accounts.

Disadvantage:

Since it is the only open tradeline you have, the utilization on the card will drop your score (as you have seen).  

Bottom line, you need to get AT LEAST one credit card.  Cap 1 shouldn't be a problem for you.  You can try a couple other pre-qualifiers and see which cards you are eligible for and decide.  Once you get that reporting, then you can remove yourself from the Discover card.

[takeshi74]

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@Anonymous wrote:

It seems like it is now hurting my score.

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High utilization is hurting your score(falls under Amounts Owed below).

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

At 90% it's maxed.  Even 65% is very high.

You need to get your own credit cards though it would have been better to do so with low utilization on Discover.