Authorized user question.

Nem · ‎06-02-2015

Hello everyone,

I've been making slow but steady progress on paying off some of my debts. My mom recently asked me if I wanted to be added as an authorized user to her AMEX card. I only have one active line of credit right now, so I figured why not. Problem is, the card is consistently maxed out. My score has suffered as a result of this.

My question is, would it be better for me to remove my name as an authorized user, or should I stick it out? It's literally been the reason for my score to drop around 100 points, which is very discouraging .... I know it will eventually go down but it will be a while. I do not use the card personally.

Scupra · ‎06-02-2015

@Nem wrote:
Hello everyone,

I've been making slow but steady progress on paying off some of my debts. My mom recently asked me if I wanted to be added as an authorized user to her AMEX card. I only have one active line of credit right now, so I figured why not. Problem is, the card is consistently maxed out. My score has suffered as a result of this.

My question is, would it be better for me to remove my name as an authorized user, or should I stick it out? It's literally been the reason for my score to drop around 100 points, which is very discouraging .... I know it will eventually go down but it will be a while. I do not use the card personally.

I would remove yourself from it until it is paid down. This is the downside to AU accounts, you have no control of what it reports. Utilization plays a major role in your FICO score.

ezdriver · ‎06-02-2015

Drop the AU and get yourself another credit card.

Anonymous · ‎06-02-2015

I believe you answered your own question when you stated:

"It's literally been the reason for my score to drop around 100 pts......"

I'd definitely remove myself if my score plummeted 100 pts based solely on being an AU.

RobertEG · ‎06-02-2015

The other downside of having an AU on your report is that it automatically makes any score produced from your credit report not representative of only your own credit histiory.

Parties reviewing your score have no way to back out the effect of an AU and produce a score that is representative of only your own history.

If the creditor is apt to do a manual review and thus notice the presence of an AU, they might then choose to discount the effect of your score in their decision making.

Anonymous · ‎06-02-2015

If it's affecting you by 100 points, I say remove yourself!

gdale6 · ‎06-03-2015

@Anonymous wrote:
If it's affecting you by 100 points, I say remove yourself!

I concur.

Nem · ‎06-12-2015

Thank you everyone for the input! I'm not sure if removing myself will bring my credit score back up but it should help my utilization at the least.