Are These Authorized User Accounts Hurting My Credit File?

[DarkHorseTX]

Hello all!

I've been working on rebuilding my credit over the past few months. I'm now in a spot where I'm wondering if these AU accounts are doing more harm than good. Payment history is perfect on all AU accounts. But age of accoutns isn't crazy long and the utilization could be better. Really seems there is a lot of unknown information out there about AU accounts. I will say as these came on my file one by one, 3/4 caused a jump up in score. One caused it to pretty much stay flat. Any thoughts on if I should leave these on or not? I'm currently working on recon for a Chase Business Card. 1 hard inquiry last week. 

Experian score as of today: 664 - according to simulators paying off the $14.5k Chase card should give this a big bump. 

Auto loan - $42k balance. 18 month history. 1 late on 3/24 (killer and trying to get removed). 2 other closed auto loans with 3+ years of payments. No lates.

Active Primary CC accounts:

1) Discover It - $0 - CL $5,400 - Opened 11/2020 - never late

2) Cap One Venture One - $135 - CL $8,000 - Opened 11/2020 - never late

3) Chase Saphire Preferred - Was $14,500 now $0 (not reported yet but expecting this soon. 0 balance is already showing on a few places) - CL $14,500 - Jan 2020 never late

4) Apple Card - $4,000 - CL $4,000 - 1 late 3/24 - opened 11/2021 (paying this off end of the month when it reprots)

***Also have a Chase Business Ink Preferred - Balance $9,000 - CL $10,500 - But this is not currently showing on my personal credit.

Authorized User Accounts

1) Citi - $32/$33,000 - 05/2005 never late

2) Chase (Mariot Bonvoy) - $831/$7,700 - 11/2022 never late

3) Chase (Southwest RR) - $9,699/33,600 - 11/2022 never late

4) Chase (Amazon) - $2,007/$12,000 - 11/2022 never late

[JoeRockhead]

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@DarkHorseTX wrote:

Hello all!

I've been working on rebuilding my credit over the past few months. I'm now in a spot where I'm wondering if these AU accounts are doing more harm than good. Payment history is perfect on all AU accounts. But age of accoutns isn't crazy long and the utilization could be better. Really seems there is a lot of unknown information out there about AU accounts. I will say as these came on my file one by one, 3/4 caused a jump up in score. One caused it to pretty much stay flat. Any thoughts on if I should leave these on or not? I'm currently working on recon for a Chase Business Card. 1 hard inquiry last week. 

Experian score as of today: 664 - according to simulators paying off the $14.5k Chase card should give this a big bump. 

Auto loan - $42k balance. 18 month history. 1 late on 3/24 (killer and trying to get removed). 2 other closed auto loans with 3+ years of payments. No lates.

Active Primary CC accounts:

1) Discover It - $0 - CL $5,400 - Opened 11/2020 - never late

2) Cap One Venture One - $135 - CL $8,000 - Opened 11/2020 - never late

3) Chase Saphire Preferred - Was $14,500 now $0 (not reported yet but expecting this soon. 0 balance is already showing on a few places) - CL $14,500 - Jan 2020 never late

4) Apple Card - $4,000 - CL $4,000 - 1 late 3/24 - opened 11/2021 (paying this off end of the month when it reprots)

***Also have a Chase Business Ink Preferred - Balance $9,000 - CL $10,500 - But this is not currently showing on my personal credit.

Authorized User Accounts

1) Citi - $32/$33,000 - 05/2005 never late

2) Chase (Mariot Bonvoy) - $831/$7,700 - 11/2022 never late

3) Chase (Southwest RR) - $9,699/33,600 - 11/2022 never late

4) Chase (Amazon) - $2,007/$12,000 - 11/2022 never late

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Your scores should see a fairly significant improvement once your only reported balance is the small one on your Venture One (you should keep it that way for optimum scores). The AU utilization isn't factored in your scores, but there is a minor all zero penalty if all your AU accounts report zero.

Aside from some very limited benefits of ageing metrics considering you have your own credit established, for the most part, the AU accounts aren't helping you in the way most people think they do. They're more beneficial for people with no credit and trying to help establish themselves. Your own accounts and history are what's going to be weighed the heaviest. 

[DarkHorseTX]

Got to. I don't mind keeping them on there if they have any benefit at all. I just don't want them to hurt my scores. I do wonder how much they are helping counter act those 2 recent late payments. 

[SouthJamaica]

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@DarkHorseTX wrote:

Hello all!

I've been working on rebuilding my credit over the past few months. I'm now in a spot where I'm wondering if these AU accounts are doing more harm than good. Payment history is perfect on all AU accounts. But age of accoutns isn't crazy long and the utilization could be better. Really seems there is a lot of unknown information out there about AU accounts. I will say as these came on my file one by one, 3/4 caused a jump up in score. One caused it to pretty much stay flat. Any thoughts on if I should leave these on or not? I'm currently working on recon for a Chase Business Card. 1 hard inquiry last week. 

Experian score as of today: 664 - according to simulators paying off the $14.5k Chase card should give this a big bump. 

Auto loan - $42k balance. 18 month history. 1 late on 3/24 (killer and trying to get removed). 2 other closed auto loans with 3+ years of payments. No lates.

Active Primary CC accounts:

1) Discover It - $0 - CL $5,400 - Opened 11/2020 - never late

2) Cap One Venture One - $135 - CL $8,000 - Opened 11/2020 - never late

3) Chase Saphire Preferred - Was $14,500 now $0 (not reported yet but expecting this soon. 0 balance is already showing on a few places) - CL $14,500 - Jan 2020 never late

4) Apple Card - $4,000 - CL $4,000 - 1 late 3/24 - opened 11/2021 (paying this off end of the month when it reprots)

***Also have a Chase Business Ink Preferred - Balance $9,000 - CL $10,500 - But this is not currently showing on my personal credit.

Authorized User Accounts

1) Citi - $32/$33,000 - 05/2005 never late

2) Chase (Mariot Bonvoy) - $831/$7,700 - 11/2022 never late

3) Chase (Southwest RR) - $9,699/33,600 - 11/2022 never late

4) Chase (Amazon) - $2,007/$12,000 - 11/2022 never late

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I think you should jettison the AU accounts; IMHO they're not helping you at all.

The Apple card is hurting you; you should pay it off immediately if possible.

[AzCreditGuy]

I have to disagree with others, when I had my AU cards on my account with my rebuild my scores where above 800. These AU were never maxed out and only used to pay off small bills montly and in full. 

As soon as I removed those AU cards my scores dropped down to 760 to 770 across all 3. If the AU were not a benefit to me, I guess the 800 scores were useless? 

[DarkHorseTX]

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@AzCreditGuy wrote:

I have to disagree with others, when I had my AU cards on my account with my rebuild my scores where above 800. These AU were never maxed out and only used to pay off small bills montly and in full. 

As soon as I removed those AU cards my scores dropped down to 760 to 770 across all 3. If the AU were not a benefit to me, I guess the 800 scores were useless? 

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Thanks for the reply. This so what I'm looking for. Real world data points.

for what it's worth I talked to an underwriter with Chase in regards to a business card application I have with them. He was extremely helpful so I just started peppering him with questions. One of which was about the AU accounts. He said in no way would he ever recommend getting rid of those AU accounts. So at least from a Chase under writing perspective, for my specific file, they seem to be a positive. YMMV but I'm definitely leaving them on there!

[FicoMike0]

You should see a score improvement from paying the maxed accounts, that's a killer. Btw,

 (paying this off end of the month when it reprots)

you want to pay that before it reports.

As far as au accounts, my understanding is that they mostly help age metrics. Only one of those accounts is older than your own. 

For best scores do azeo, total utilization under 9%, individual under 29%.

[DarkHorseTX]

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@FicoMike0 wrote:

You should see a score improvement from paying the maxed accounts, that's a killer. Btw,

 (paying this off end of the month when it reprots)

you want to pay that before it reports.

As far as au accounts, my understanding is that they mostly help age metrics. Only one of those accounts is older than your own. 

For best scores do azeo, total utilization under 9%, individual under 29%.

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Thanks for the info! Apple Card weirdly reports  last day of each month. So I'll be paying it off tomorrow to make sure it reports a zero balance. Hoping that gives me a big boost! 

[FicoMike0]

Let us know the result. 

Usb also reports the last day of the month. Which bank is apple?

[DarkHorseTX]

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@FicoMike0 wrote:

Let us know the result. 

Usb also reports the last day of the month. Which bank is apple?

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Apple Card currently goes through Goldman Sacs. I'll post results here!