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How can being an authorized user of an employer's credit card affect my credit score?

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New Member

How can being an authorized user of an employer's credit card affect my credit score?

I buy merchandise for my employer as an authorized user of 1 of her credit cards. Prior to applying for an auto loan, I ordered 1 FICO score. My score had dropped about 70 points and the fico simulator said to pay down a huge credit card balance to recoup my points. I pay my cards in full monthly. This 5 figure balance has screwed up my credit utilization percentage as if my cards were maxed out. What can I do, Community?

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7 REPLIES 7
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Blogger

Re: How can being an authorized user of an employer's credit card affect my credit score?

Have you thought about paying off the standing balance before statement closing date? 

Message 2 of 8
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New Member

Re: How can being an authorized user of an employer's credit card affect my credit score?

My problem is that it is not my account to make a payment on. And, do I tell my boss to pay her own card off each month so that my credit score doesn't tank? I never dreamed that this part of my job would create a "situation".

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Blogger

Re: How can being an authorized user of an employer's credit card affect my credit score?

If your credit score is really important to you I'm sure you can work something out with your boss. I'm sure you already know that the impact of utilization on credit score is very short-term. If you need to apply for debt next month just tell your company to pay the balance early this month. 

 

I actually just realized the reason most business revolving cards are charge cards: they don't affect cardholders' utilization ratio! Perhaps you can ask your business to provide a charge card instead of a credit card? 

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New Member

Re: How can being an authorized user of an employer's credit card affect my credit score?

Thanks for your ideas. All this is news to me! The difference between charge and credit cards helps me.

Message 5 of 8
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Moderator Emeritus

Re: How can being an authorized user of an employer's credit card affect my credit score?

Hi!  Welcome to myFICO community forums!

 

You should be able to dispute the account as "not mine" and it will stop reporting.

 

Also, business Amex does not report to personal credit report.

 

Also, feel free to check out the Business Credit part of the forum, you can find out which cards report to personal credit, and which ones do not.

 


Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 676 EQ 676 EX 676
Filed Chapter 13 on 06/01/2017 after job loss.

Goal: FHA Construction Loan

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Message 6 of 8
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Legendary Contributor

Re: How can being an authorized user of an employer's credit card affect my credit score?

Actual "authorized user" status has very specific meaning in the world of credit reporting.  It means more than just being authorized to use the card.

 

It means that the entire history of her account, good or bad, is also reported to your credit file, and thus shows in your credit report and is included in your scoring just as if it were your account.

 

Perhaps get removed as an authorized user, but retain permission to use the card........

Message 7 of 8
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Valued Contributor

Re: How can being an authorized user of an employer's credit card affect my credit score?

You need to get taken off the account so it doesn't report to your credit report.  A couple of options are a card in the businesses name that you can use or a charge card in your name.  The charge card won't impact your utilization.  Now it can still look bad under a manual review with a huge balance compared to your income but can be easily explained given the situation.  As long as the account is positive and always paid on time I'd go with the charge card route if an option for added age assuming it's an established business with a longer credit history.

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