Deceased spouse -- Impacts to scores after closing authorized user accounts and mortgage changes.

[Anonymous]

My spouse recently passed away and I am working on increasing my credit scores. We each had different problems with our credit. I had a few very high-cost auto loans with high balances, we both had some late payments, and our credit cards usually stayed over 50% full. Since she’s passed away I have paid off and closed all the auto loans, paid off all credit cards, and paid off 2 of my student loans (where some of the late payments were). Currently, I just have some federal student loans at 40k.

We had several credit cards, with each of us down as primary users, and the other down as authorized users. We had about $65,000 in our combined available credit lines, with $25,000 of that being on her cards. I need to close out her cards, and since I am down as an authorized user on those cards, how will it impact my score when my available credit line goes down to $40,000? I plan on keeping the balances well below 10% (probably closer to zero).

Once I’ve sorted that out I also need to make some changes to our mortgage. The mortgage was in her (and her late father’s) name. I am not on the mortgage (I am on the deed). But between the language in the will and the Garn-St. Germain Act, I shouldn’t have any trouble getting the mortgage transferred over to me. What should I expect in terms of score increase/decrease when I do this?

[FireMedic1]

Welcome @Anonymous 

So sorry about your loss. There's many angles to look at this. It comes down to your cards as the primary name. You say the util is in a good range. Once your dropped as AU on her closed cards it may affect you in ways of who had the oldest card. Who had the better average age of accounts (AAoA). Though since you paid off all the loans. The mortgage when it goes into your name will count as an installment loan. So you got the cards and soon a loan in your name. FICO likes that. It could go either way. Whats the total credit line on your cards. Whats the util on all the cards. If any of them have a high util percentage that could hold back a few points. Then the mortgage will hit as a new loan in your name. Then the balance owed percentage will go into effect. Once it all clears and your all set and everything is reporting for you correctly. Then you'll really know where you stand. Theres so many routes in this situation. Again. So sorry. Though keep us updated how it turns out.

[Anonymous]

@Anonymous my condolences as well. In addition to what @FireMedic1 said, if by chance one of the cards is AMEX, you can keep the card open. 

[Anonymous]

@FireMedic1 Thank you so much for all this -- I'll definitely report back what happens.

@Anonymous My spouse was the primary user on two AMEX cards, and I was listed as the authorized user. Are you saying that AMEX will just switch me over as the primary?

[Anonymous]

Yes! Call them and let them know. Your account age won't be impacted at all on the Amex. You'll just become the primary. 

This happened to me personally when my dad passed away. I called AMEX to tell them, I was nervous about the hit and they just let me keep the account. He had the gold card so they sent me a new heavier card for the primary instead of the plastic one I was issued as an AU. Tbh---I don't know if they checked my credit but I do know I was allowed to keep the card and it's the same account/same age.

UPDATE: I just googled it. It seems that i must've applied but, they did let me keep my age.