Help! my wife as authorized user score droped by 25, what can I do?

[Anonymous]

I added my wifo to my 'US band World perks visa' as an authorized user (to get airline miles). Her score dropped form 656 to 625.

This was a terrible move in my part cos we are in the process of getting a home loan.  I had no idea of the authorized users getting affected.

I have balance of $8000 on this card (limit $10000)

I am trying to decide between

1. Calling  the CCC and asking them to remove her as authorized user.

2. Keeping here as a authorized user and with difficulty pay off this card using money set aslide for downpayment for home

What will be best way regarding bringing her score back to where was in 1 month?

I am afraid even though removeing her as an authorized user is the easiest way, it might not lift her score to where it was soon enough (1 month).

Please advice

[Anonymous]

It sounds like her score dropped because your utilization on that card is so high.  If she has small lines of credit your card could have raised her utilization to 80%.   It sounds like unless you can pay off a big chunk of the card her score might be higher if you dropped her as an AU.

[Tuscani]

Yep.. Your high util hurt her. I would pay it down or remove it. Regardless, it won't matter after next year:

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=4008

[Anonymous]

Thanks for you posts

But, what is better: removing as an authorized user or paying off the balance.

I've heard that removing here freezes the account balance at the point when she was removed and you have to call CR's to get it removed

Pleas advice

[sl]

I would pay the card down. Even if you took her off as an AU there is no gtd. her score will increase.

[Anonymous]

If you pay off the balance, then she will get the a positive benefit of being an AU (i.e., better FICO score).  Removing the TL will get her back to where she was.  Regardless of the path chosen, there is a lag between action and it being reflected on the reports.

If you opt to keep her as an AU it will be short lived because the CRAs have announced that they will adopt the new FICO scoring model that will not take into account AU TLs.  So at somepoint, you may want to opt for her to become a joint account holder if her scores improve sufficiently.

[Anonymous]

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@Anonymous wrote:

... This was a terrible move in my part cos we are in the process of getting a home loan ... I am afraid even though removeing her as an authorized user is the easiest way, it might not lift her score to where it was soon enough (1 month)...

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Do you already have a broker or lender selected? If so, discuss your options with them. Make sure that paying down the $8000 balance doesn't create a larger problem, such as inability to pay a large enough down payment or insufficient cash reserves. Scores are not the only factor that could affect approval or interest rate. I would determine how important that $8000 is for non-score purposes before applying it to the CC balance.

What is the statement date for this particular account? Does it occur before the lender will need to pull your scores? If you do pay down the balance, your wife's scores (and yours) should reflect that change shortly after the next statement date. If you request that she be removed as an AU, there is no guarantee that the CC company and the CRAs will make that change quickly enough to affect her scores before the next reporting date (although it's certainly possible they could).

Message Edited by Revike on 06-18-2007 06:46 AM