What happens to a consumer's credit report when they are removed as an authorized user from a tradeline that has a baddie/baddies? In other words: does the baddie/s go away? Is the baddie no longer part of the mysterious FICO calculation?
I did research and it seems it may depend on the issuer. Per one website I shall nmentionton, it depends on how the credit card company reports authorized user accounts. The account history for the credit card may automatically drop off the credit report after the user is removed.
BACKSTORY
In early 2013, my mother mistakenly made a late payment toward an American Express-branded department store credit line. I think she thought she put the payment in the mail but she didn't. Honest mistake from an otherwise responsible credit user.
Anyway, she wound up with a 30-day late on her report.
And unfortunately, as an AU on the account who never uses the card, said baddie is now on my report.
Per the seven-year rule, this will fall off in about two years (early 2020).
I'm debating removing myself as an AU to potentially keep the baddie off my report, if that is even a possibility OR helping her with a Goodwill letter since this "baddie" was a rare occurrence.
Perhaps I try the latter and do the former as a last resort?
Obviously, I would no longer benefit from the credit utilization ratio boost, which is why mama kindly added me in the first place. It's a $10,000 credit line that's used only a few times a year. She does not carry a balance.
She's retired, has plenty of savings, a pension, Social Security benefits and was always a responsible credit user. Her credit score is in the 800s and she just bought her first car in more than 10 years with a 1.5 percent interest rate or something crazy low. I'd tout her credit history in the letter, which I'd be writing on her behalf without the bank knowing it.
She's unbothered by the whole scenario because it was five years ago and it hasn't stopped her from successfully refinancing her mortgage or from buying a new car with a near-zero interest rate.
Obviously, as the AU with only average credit and TONs of revolving credit debt, it's bothering me. My own "REAL" last baddie is from early-to-mid 2012. So, if I can make mama's baddie go bye-bye and all goes well for me within the next 12 months, I will be baddie-free next year!
There are a couple things going on that's making this decision complicated:
- My Lending Club and Prosper Loans will be paid in full this fall and I will be seeking another Lending Club loan to consolidate my remaining debt. My credit score obvious needs to be as high as possible when I apply. This forthcoming app in fall 2018 will mark my first inquiry in about two years.
- I'm about to have a 21-year-old mortgage removed from my report. It's not mine, and although it's actually helping my credit score, it doesn't belong on my report.
- My $6,000 debt with PayPal Credit via Comenity may become public with Synchrony takes over in July 2018.
Basically, s__t is about to hit the fan for me. I'm currently looking for a new 9-5 AND a second, part-time remote position to tackle this debt.
Removing myself from the credit line may not be in my best interest, after all, especially if I can get it removed via goodwill.
